Sec. 138126. Modifications to inclusion of global intangible low-taxed income
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/bill/117/hr/5376/rh/section-138126·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 951A is amended by adding at the end the following new subsection: If any CFC taxable unit of a United States shareholder is a tax resident of a country which is different from the country with respect to which any other CFC taxable unit of such United States shareholder is a tax resident— such shareholder’s global intangible low-taxed income for purposes of subsection
(a)shall be the sum of the amounts of global intangible low-taxed income determined separately with respect to each country with respect to which any CFC taxable unit of such shareholder is a tax resident, and for purposes of determining such separate amounts of global intangible low-taxed income— any reference in subsection (b), (c), or
(d)to a controlled foreign corporation of such shareholder shall be treated as reference to a CFC taxable unit of such shareholder, and net CFC tested income, net deemed tangible income return, qualified business asset investment, interest expense described in subsection (b)(2)(B), and such other items and amounts as the Secretary may provide, shall be determined separately with respect to each such country by determining such amounts with respect to each CFC taxable unit of such shareholder which is a tax resident of such country. For purposes of this subsection— The term CFC taxable unit means any taxable unit described clause (ii), (iii), or
(iv)of section 904(e)(2)(B) (determined without regard to the references to the taxpayer in clauses
(iii)and
(iv)of such section). Terms used in this subsection which are also used in section 904(e) shall have the same meaning as when used in such section. For purposes of this subsection— Except as otherwise provided by the Secretary, rules similar to the rules of section 904(e) shall apply. Except as otherwise provided by the Secretary, subsection (f)(2) shall be applied separately with respect to each CFC taxable unit. . Section 951A , as amended by subsection (a), is amended by adding at the end the following new subsection: The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out, or prevent the avoidance of, the purposes of this section, including regulations or guidance which provide for— the treatment of property if such property is transferred, or held, temporarily, the treatment of property if the avoidance of the purposes of this section is a factor in the transfer or holding of such property, and appropriate adjustments to the basis of stock and other ownership interests, and to earnings and profits, to reflect tested losses. . Section 951A(d) is amended by striking paragraph (4). Section 951A(h), as added by paragraph (1), is amended by striking and at the end of paragraph (2), by striking the period at the end of paragraph
(3)and inserting a comma, and by adding at the end the following new paragraphs: rules similar to the rules provided under the regulations or guidance issued under section 904(e)(5), appropriate basis adjustments, and appropriate adjustment to made, and appropriate tax attributes and records to be maintained, separately with respect to CFC taxable units. . Section 951A(c) is amended by adding at the end the following new paragraph: If the amount described in paragraph (1)(B) with respect to any United States shareholder for any taxable year of such United States shareholder (determined after the application of this paragraph) exceeds the amount described in paragraph (1)(A) with respect to such shareholder of such taxable year, the amount otherwise described in paragraph (1)(B) with respect to such shareholder for the succeeding taxable year shall be increased by the amount of such excess. Proper adjustments shall be made in the application of subsection (f)(2)(B) to take into account any decrease in global intangible low-taxed income by reason of the application of subparagraph (A). . Section 951A(g)(1)(B)(ii), as added by subsection (a), is amended by inserting any increase determined under subsection (c)(3)(A), after interest expense described in subsection (b)(2)(B), . Section 382(d) is amended by adding at the end the following new paragraph: The term pre-change loss shall include any excess carried over under section 951A(c)(3) under rules similar to the rules of paragraph (1). . Section 951A(b)(2)(A) is amended by striking 10 percent and inserting 5 percent . Section 951A(b) is amended by adding at the end the following new paragraph: In the case of any specified tangible property located in a possession of the United States, paragraph (2)(A) and subsection
(d)shall be applied by substituting 10 percent for 5 percent in paragraph (2)(A). . Section 951A(c)(2)(A) is amended by inserting and at the end of subclause (III), by striking and at the end of subclause
(IV)and inserting over , and by striking subclause (V). Section 951A(f)(1) is amended by adding at the end the following new subparagraph: Except as otherwise provided by the Secretary, references to section 951 or section 951(a) in sections 959, 961, 962 and such other sections as the Secretary may identify shall include references to section 951A or section 951A(a), respectively. . Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2021, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end. The amendments made by subsections (b)(1), (b)(2), and
(f)shall apply to taxable years of foreign corporations beginning after December 31, 2017, and to taxable years of United States shareholders in which or with which such taxable years of foreign corporations end.