R5-M6 International Tax Issues Flashcards
what are the 4 categories of foreign income?
- passive category income (dividends, interest, rents, and royalties)
- general category income (active business income)
- foreign branch income
- global intangible low-taxed income
what criteria a sales of property must be met to increase a corporation’s foreign-derived intangible income?
- to non-use persons
- for use outside the us
- not to a related party for its own use
*think of it as double-out
what are 2 types of withholding tax regimes for nonbusiness income?
- fixed, determinable, annual, or periodic income (FDAP): w/hold on foreign person’s investment-type income (ex: dividends, interest, royalties)
- foreign account tax compliance act of 2010 (FATCA): w/hold tax on foreign entities for failures to provide information to/about the US persons
what is characteristics of controlled foreign corporation CFC?
- a foreign corp is considered a CFC if more than 50% of its stock is owned by US shareholders
- a US shareholder of a CFC is any US person owning at least 10% of the foreign corp’s stock (vote or value)
what income is eligible for 100% dividends-received deduction for foreign source?
available only to corporate shareholders who own at least 10% of the foreign corp.
which entity may base erosion and anti-abuse tax (BEAT) apply?
corporations with average annual gross receipts of $500M or more for the 3 preceding tax years
who must file form 1120-F US income tax return?
a foreign person with a US trade or business of a foreign corp to report income earned by the US BRANCH
what criteria a foreign person must meet to be considered a US person
present in the US for at least 31 days during the CY and at least 183 days for 3 year periods
what is subpart F income?
is income that has no economic connection to the country of origin
