In: Accounting
The acronym for the new provision under the Tax Cuts and Jobs Act (TCJA) that may require the inclusion of some of the earnings of a foreign (non-US) subsidiary in a US corporation’s US income tax return, even though the foreign subsidiary did not actually distribute these earnings to the US corporation is:
a. GILTI
b. FDII
c. CFC
d. BEAT
Answer is A. GILTI.
This is a new provision added in 2017. I have added a screenshot for your better understanding. Column 2 explains the 2017 law and Column 3 explains the changes in the provision. The source website is that of IRS.