GILTI and the Transition Tax

GILTI and the Transition Tax

On June 29, to 20 attendees, AMCHAM Tax and Business Economics Committee hosted a joint video conference titled GILTI and the Transition Tax. Business Economics Committee Leader Luca Bernardinetti, Mahanakorn Partners Group introduced guest speaker Josh Maxwell, partner at Hone Maxwell LPP. The Global Intangible Low-Taxed Income (GILTI) was implemented in 2018 as a concept by the Tax Cuts and Jobs Act.  Since then a lot of companies are confused on how it applies to their organization, leading to a large portion of American owned companies being noncompliant.

Josh who advises clients on a wide variety of international tax issues gave an overview on what foreign subsidiaries are subject to these laws, goals and problems with GILTI the transition tax, its application, basics of the calculation, mitigation options and future planning.  He mentioned that the confusion with filing taxes goes beyond GILTI and the Transition Tax as some companies think they are exempt if their wife or child are the owner of the company. Josh ended his presentation with options to fix noncompliance. As a first step, he mentioned that it’s not too late to get compliant. Taxpayers usually fall into two categories, those that have filed a Form 5471 and those that have not.

The event was moderated by Tax Committee’s Co-Chair Matthew Stevens, Global U.S. Tax Plan. AMCHAM members can contact Josh if they would like to reach out to him personally. The presentation and the video are both available on the AMCHAM member portal.

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