Other Publications



A New Tax Regime for C.F.C.’s: Who Is G.I.L.T.I.?

Volume 5 No 1    /    Read Article

By Stanley C. Ruchelman and Elizabeth V. Zanet

The Tax Cuts and Jobs Act ("T.C.J.A.") introduces a new minimum tax regime applicable to controlled foreign corporations (“C.F.C.’s”). It also provides tax benefits for income from “intangibles” used to exploit foreign markets. The former is known as G.I.L.T.I. and the latter is known as F.D.I.I. Together, G.I.L.T.I. and F.D.I.I. change the dynamics of cross-border taxation and can be seen as an incentive to supply foreign markets with goods and services produced in the U.S. Both provisions reflect a view that only two value drivers exist in business: (i) hard assets (such as property, plant, and equipment) and (ii) intangible property. In a detailed set of Q&A’s, Elizabeth V. Zanet and Stanley C. Ruchelman look at the ins and outs of the new provisions.  See more →