By: Jerald David August, Chair, International Taxation and Wealth Planning Practice Group

The Tax Cuts and Jobs Act, P.L. No. 115-97, §13923, added new Sections 1400Z-1 (Qualified Opportunity Zones) and 1400Z-2 (Gains Invested in Qualified Opportunity Zones (“QOZs”), to the Internal Revenue Code (“Code”) under the Tax Cuts and Jobs Act. The new tax deferral provision has received much attention from taxpayers realizing large capital gains.… Continue Reading

On March 4, 2019 in REG-104464-18, the government released proposed FDII regulations under section 250. The rules provide important computational and definitional provisions in applying section 250. The much-awaited proposed rule-making also contains rules coordinating the deduction for FDII with the  deduction also allowed under section 250 with respect to global intangible low-taxed income (GILTI). Under section 14202(a) of the Tax Cuts and Jobs Act, P.L.… Continue Reading

The Tax Cuts and Jobs Act of 2017, P.L. 115-87 (TCJA), [1] enacted into law on December 22, 2017, introduced numerous reforms to international taxation which changes have already had a profound impact on tax planning for multinational business enterprises (MNEs) as well as domestic businesses engaged in foreign business ventures or investments.[2] The most significant reform enacted in the TCJA includes extends beyond the international tax provisions contained in the Code.… Continue Reading

In Martin Wächtler v. Finanzamt Konstanz, C-581/17 (CJEU 2/26/2019), the Court of Justice of the European Union (CJEU) determined that application of the German exit tax rules were incompatible with the Agreement on the Free Movement of Persons (AFMP) of June 21, 1999, between the EU and its member states on the one part, and between the EU and Switzerland on the other.… Continue Reading

Section 199A, as added by the Tax Cuts and Jobs Act, P.L. 115-97, §11011 (12/22/2017), allows a non-corporate taxpayer to deduct up to 20% of its qualified business income, subject to applicable limitations, in reducing taxable income. Qualified business income from a domestic source income attributable to a domestic business operated as a sole proprietorship or through a passthrough entity including a partnership, S corporation, trust, or estate referred to collectively as a “relevant passthrough entity” under the final regulations issued in early February of this year.… Continue Reading