Last year’s American Jobs Creation Act made significant revisions to the foreign tax provisions in a way to reduce double taxation and simplify compliance so U.S. businesses can be more competitive in the global marketplace. The changes are extensive and reach into many areas of tax compliance and planning. In a recent special issue of TAXES: The Tax Magazine devoted to practical analysis of AJCA changes, James A. Doering takes apart the foreign tax credit revisions and shows through examples how these new measures will work and what sorts of planning opportunities they represent. In addition to mitigating double taxation, the AJCA also strengthens the overall foreign loss provisions and minimum holding period for foreign tax credits on withholding taxes on income other than from dividends.
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This story is from the CCH’s monthly Focus on Tax newsletter, which provides advise and guidance on federal and state tax issues for tax and accounting professionals.
Read this article from CCH’s Journal of Taxation of Financial Products.