U.S. Transition Tax
From IR-2018-131, June 4, 2018
Section 965 of the Internal Revenue Code, enacted in December 2017, imposes a transition tax on untaxed foreign earnings of foreign corporations owned by U.S. shareholders by deeming those earnings to be repatriated. Foreign earnings held in the form of cash and cash equivalents are taxed at a 15.5 percent rate, and the remaining earnings are taxed at an 8 percent rate. The transition tax generally may be paid in installments over an eight-year period when a taxpayer files a timely election under section 965(h).
Please contact us at 1-855-448-0200 if you require assistance on U.S. Transition Tax or any U.S. / Canadian cross border tax matter. Past U.S. Transition Tax blog entries:
Feburary 27, 2018: https://wldtax.com/us-transition-tax/
March 14, 2018: https://wldtax.com/us-transition-tax-update/
April 3, 2018: https://wldtax.com/us-transition-tax-next-update/
April 14, 2018: https://wldtax.com/us-transition-tax-a-fourth-update/