Page 44 - Tax Reforms - Businesses

Transition Tax on Foreign Earnings (4/6)

T A TRANSITION

Newly enacted section 965 of the Internal
Revenue Code imposes a transition tax on

untaxed foreign earnings of foreign
subsidiaries of U.S. companies by deeming
TAXES
S X earnings held in the form of cash and cash
those earnings to be repatriated. Foreign

equivalents are taxed at a 15.5 percent rate,
and the remaining earnings are taxed at an 8
E percent rate.

The transition tax generally may be paid in
installments over an eight-year period.

https://www.irs.gov/newsroom/businesses

https://lentcpa.com