Tag Archives: FDII

Business Income Tax Rates Slashed: Planning Pointers and Traps

The Tax Cuts and Jobs Act slashes business income tax rates on certain types of business income.
  • The 20% Qualified Business Income Tax Deduction slashes the top individual income tax rate on certain business income from 37% to 6%.
  • The 37.5% Foreign-Derived Intangible Income (FDII) Deduction slashes the C corporation income
...

“Tax-Favored” Foreign Income: Planning Pointers and Traps, An Overview of the FDII and GILTI Deductions

The Tax Cuts and Jobs Act (TCJA) reduces the corporate income tax rates of C corporations to 21 percent. The TCJA further reduces the C corporation income arising from tax-favored foreign income by means of two deductions:
  • The Foreign-Derived Intangible Income (FDII) deduction equals 37.5 percent of FDII and results
...