Global Intangible Low-Taxed Income tax (GILTI) for Americans that have an interest in Controlled Foreign Corporations (CFC)
March 6, 2022
Americans or foreigners with a financial interest in The United States must file a 1040 tax return to the Inland Revenue Service (IRS).
Americans will file form 5471 Foreign Corporations to inform the IRS of their foreign ownership of shares on their 1040 tax return. Americans may have to pay global intangible low-taxed income (GILTI) to the Inland Revenue Service (IRS) even though they have not received any income in the form of wages, interest or dividends from these foreign corporations.
GILTI tax may have to be paid to the IRS irrespective of whether the foreign-controlled-corporation (CFC) has distributed money in the form of dividends or not.
It is advisable to speak with a Certified Public Accountant (CPA) or Enrollment Agent (EA) to work out the reporting requirements and GILTI tax liabilities of owning an interest in a CFC.
Optimise Accountants provides tax support to landlords/property investors to help grow their wealth and minimise tax: income tax, capita; gains tax (CGT), inheritance tax (IHT), corporation tax and Stamp Duty Land Tax (SDLT). Optimise also helps expats understand taxes in the United States, United Kingdom, Spain and Hong Kong
www.optimiseaccountants.co.uk
www.optimiseaccountants.co.uk
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