Treatment of GILTI State Law Survey

Summary

This survey provides a summary of laws in all 50 states plus the District of Columbia regarding the treatment of global intangible low-taxed income (GILTI). As part of the Tax Cuts and Jobs Act of 2017, the federal government created another category of Subpart F income. The federal legislation provides that a U.S. shareholder of a controlled foreign corporation (CFC) must include in gross income for a taxable year its GILTI in a manner generally similar to inclusions of Subpart F income. With respect to a U.S. shareholder, GILTI, as defined in IRC § 951A(b), is the excess of the shareholder’s net CFC tested income for the taxable year over the shareholder’s net deemed tangible return for such taxable year. This is a mandatory annual inclusion in which the GILTI is determined on an aggregate basis for all CFCs owned by the same U.S. shareholder. I.R.C. § 951A(a).