WASHINGTON: US companies won some concessions from the Internal Revenue Service following proposed regulations that would soften the blow of a new foreign tax – but the rules didn’t go as far as the business community had hoped.
The agency issued guidance on Wednesday that would in some ways allow businesses to minimise the hit when calculating how much they owe for the new levy on their Gilti, or global intangible low-tax income. Companies only have to allocate half – instead of all – of certain domestic expenses to foreign subsidiaries, which effectively lowers their Gilti liabilities, according to the regulations.
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