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Advising International Business Ventures: Controlled Foreign Corporations and Subpart F

In CFC, International Tax by Jason B. FreemanLeave a Comment

Freeman Law frequently advises international business ventures. International operations often give rise to unique (and sometime unanticipated) compliance obligations and complex reporting requirements. Recent tax reform rules and regulations have imposed a number of new requirements.  This post focuses on, and provides a short introduction to, the Controlled Foreign Corporation (“CFC”) rules under Subpart F of the Code.   Historically, U.S. …

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Advising International Business Ventures: Tax Reform and a Quasi-Territorial Tax System

In CFC, International Tax, Participation Exemption, Tax Reform by Jason B. FreemanLeave a Comment

The Tax Cuts and Jobs Act (“TCJA”) led a shift from a “worldwide” tax system towards a territorial tax system—more accurately, a “quasi”-territorial tax system.  The TCJA accomplished this through several major reforms.  First, it enacted a “toll charge,” or transition tax—a one-time tax on the deemed repatriation of earnings held offshore. In exchange, it implemented a “Participation Exemption System” that …