International Aspects of the Tax Cuts & Jobs Act of 2017


CLE Credits earned: 2 GEN

Effective generally in 2018, the Federal Tax Cuts and Jobs Act of 2017 (TCJA) brought far reaching changes to the Federal income taxation of cross border business activities. TCJA, together with the implementation of the recommendation of OECDs Base Erosion and Profit Shifting Actions, has resulted in the obsolescence of much of the cross border tax planning strategies commonly employed before 2018.

Deferral of U.S. income tax on accumulated foreign earnings of U.S. owned foreign corporations has been largely ended either in 2017 for calendar year U.S. taxpayers or in 2018 for fiscal year taxpayers. The future deferral of U.S. income tax on foreign earnings by U.S. based businesses will be attainable as a practical matter only in limited circumstances.

Under TCJA, new tax incentives are available for a U.S. business to serve foreign markets from U.S. manufacturing and development facilities located in the United States. Foreign based businesses will find the United States to be a more favorable tax climate than was the case before 2018.

In the webinar, our instructor will review the practical aspects of the international provisions of TCJA. Open issues that need to be addressed in regulations or other guidance will be highlighted. Practical planning strategies to accommodate TCJA will be discussed for both large and mid-size companies with some attention to flow through structures.

Key topics to be discussed:

•   One time transitional inclusion of U.S. tax deferred foreign earnings (§965)
•   Global Intangible Low-Taxed Income known as GILTI (§951A)
•   Deduction of Foreign Derived Intangible Income known as FDII (§250)
•   Base Erosion Minimum Tax known as BEAT (§59A)
•   Participation Exemption (or DRD) for certain foreign dividends (§245A)
•   Major foreign tax credit changes (§§ 901, 902, 904 and 960)

Date / Time: June 20, 2018

•   4:00 pm – 6:00 pm Eastern
•   3:00 pm – 5:00 pm Central
•   2:00 pm – 4:00 pm Mountain
•   1:00 pm – 3:00 pm Pacific

Choose a format:

•   Live Video Broadcast/Re-Broadcast:Watch Program “live” in real-time, must sign-in and watch program on date and time set above. May ask questions during presentation via chat box. Qualifies for “live” CLE credit.
•   On-Demand Video:Access CLE 24/7 via on-demand library and watch program anytime. Qualifies for self-study CLE credit. On-demand versions are made available 7 business days after the original recording date and are view-able for up to one year.


Original Broadcast Date: June 20, 2018

William K. Norman, Esq. is a Partner in the law firm of Ord & Norman in Los Angeles, California. He is a Certified Specialist in Taxation Law. In his practice, he focuses on the counseling of clients in cross border business transactions, cross border real estate investment structures, personal wealth planning for the multinational family, offshore voluntary disclosures, expatriations of U.S. citizens and green card holders, use of trusts by multinational families, and representation of taxpayers before the IRS and the Tax Court. Mr. Norman received an A.B. degree in economics from the University of California at Berkeley, a J.D. degree from the University of California and an LL.M. (in taxation) degree from New York University School of Law. He is a senior adjunct professor in the Graduate School of Taxation, Golden Gate University where he has taught international tax courses for over 30 years on inbound and outbound transactions; foreign tax credit planning; income tax treaties; cross border acquisitions, mergers and restructurings; transfer pricing and international estate planning. He has chaired the California CPA Foundation conference on international taxation several times. He has co-chaired the annual International Bar Association conference entitled International Wealth Transfer Practice, held in London for ten years and the annual STEP-USA Pacific Rim conference for six years. He is the immediate past chair of STEP-LA Branch and a current member of its Executive Committee. He has appeared as a speaker and seminar leader at the USC Tax Institute and the New York University Tax Institute. In 2008, the Taxation Section of the Los Angeles County Bar Association presented the Dana Latham Award to him in recognition of his outstanding contributions to the field of taxation.

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Section I.

One Time Transitional Inclusion
Effective date and fiscal year considerations
Covered U.S. Shareholders
Computation of the inclusion amount
Treatment of foreign deficits
Computing the exemption
Installment payment rules

Section II.

GILTI Inclusion
Effective date and fiscal year considerations
Covered U.S. Shareholders
Computation of the inclusion
Computation of the participation exemption
Computation of the foreign tax credit on the residual inclusion
Open issues

Section III.

Deduction of FDII
Interaction of deduction for FDII with the deduction for GILTI
Determination of eligible receipts
Computing the deduction
Open issues

Section IV.

Effective date
Applicable taxpayers
Base erosion percentage
Base erosion tax benefits
Computation of the base erosion minimum tax
Open issues

Section V.

Participation Exemption for Foreign Dividends
Effective date
Eligibility for exemption
Computation of the exemption

Section VI.

Foreign Tax Credit Changes
Repeal of the indirect credit under §902
New baskets
Use of “overall foreign loss”
Section 962(b) election for U.S. Shareholders who are individuals
Open issues