For 2018 and beyond if you own 10% or more of a Controlled Foreign Corporaton (More than 50%
owned by US taxpayers) you must pay a GILTI tax (that is the real nickname of this tax) on part of the corporations net income even though it is not distributed to you. This is a modification of the Subpart F rules which causes owners (US corporations, individuals, partnerships, etc) to pay tax on earnings of controlled foreign corporations. The rules are complex and may catch many expatriate small business owners by surprise This tax is different than the Section 965 tax you paid one time for 2017.
If you want to know more the IRS draft form and initial draft instructions are below which can be downloaded in pdf format:
INSTRUCTIONS FOR FORM 8992 -draft
FORM 8992 - draft
If you want to take steps to deal with this tax before year end or need other assistance email us at ddnelson@gmail.com
If you want to know more the IRS draft form and initial draft instructions are below which can be downloaded in pdf format:
INSTRUCTIONS FOR FORM 8992 -draft
FORM 8992 - draft
If you want to take steps to deal with this tax before year end or need other assistance email us at ddnelson@gmail.com
