Our NY-based partner, Robert Kiggins, has authored a by-lined article for Law360.com concerning the impact of the recent Tax Cuts and Job Act (TCJA) on corporate repatriation of their intellectual property assets. He writes, in part:
Much has been written about how the recent Tax Cuts and Jobs Act, P.L. 115-97, is incenting U.S. multinational companies to bring jobs and income home. However, there are two lesser-known related provisions of TCJA specifically targeting more “portable” income. This is income from assets that are easily moved to other countries, such as intellectual property, or IP.
The two provisions — global intangible low-taxed income, or GILTI, and foreign-derived intangible income, or FDII— share a common goal: keeping U.S. companies’ intangible assets home in the U.S. instead of wandering the globe in search of shelter offshore in no-tax or low-tax countries. GILTI is generally bad news for affected taxpayers and FDII is generally good news.
Kiggins’ article highlights a number of important factors that should be considered and discussed with competent tax counsel with regard to the TCJA reforms.
Click HERE to download a PDF of the full article.