Three Things To Know About GILTI

Tax Law Editor Alex Bayrak examines the fundamentals of the global intangible low-taxed income tax, including how to calculate GILTI tax on foreign earnings and how GILTI interacts with various provisions of the tax code. Learn more: http://onb-tax.com/iceV50DVxPx

Introduced by the 2017 Tax Cuts and Jobs Act, GILTI is a deemed amount of income derived from controlled foreign corporations (“CFCs”) in which a U.S. person is a 10% direct or indirect shareholder. As a newly defined category of foreign income, the GILTI regime effectively imposes a worldwide minimum tax on foreign earnings.

This video answers three important questions about GILTI:
1. What is GILTI?
2. How is GILTI computed?
3. What is the importance of GILTI?