International Taxation: To and From the United States

• Chapter 1 - Export Income
  • Learning Objectives
  • Taxation of Export Income
  • Recognition and Source of Income
    • Recognition of Income
    • Time of Payment
    • Delivery of Goods
  • Receipts in Foreign Currency
    • Qualified Business Unit
    • Foreign Currency Gain and Loss
    • Calculating Taxable Income for QBUs with Foreign Functional Currencies (Non-Hyperinflationary Currencies)
    • Calculating Taxable Income for QBUs with Hyperinflationary Foreign Functional Currencies
    • QBU's Required to Use DASTM
    • General Application of DASTM
    • DASTM Gain or Loss
  • Source of Income
    • Purchase and Sale of Goods (Other Than Manufactured Inventory)
    • Factors to Be Examined
    • Sale of Manufactured Inventory
    • Manipulation of the Source of Income
  • Questions
• Chapter 2 - Allocation and Apportionment of Deductions
  • Learning Objectives
  • Allocation and Apportionment of Deductions
  • Allocations to Gross Income Classes
  • Statutory and Residual Groupings
  • Apportionment
  • Shareholder Expenses
  • Income Taxes
  • Net Operating Losses
  • Deductions Not Definitely Related to Any Gross Income
  • Personal and Dependency Exemptions
  • Interest
    • Asset Method
    • Direct Allocations
    • Nonrecourse Debt
    • Integrated Financial Transaction
    • U.S. Shareholder Loans to CFCs
    • Bond Premium
  • Costs of Research and Experimentation
  • Local Legal Requirement
  • Sales Method
    • Exclusive Allocation to Place of Research
    • Apportioned by Sales
  • Gross Income Method
    • Election
  • Form 1118, Schedule H
  • Losses on Personal Property Other Than Inventory
  • Anti-Abuse Rules
    • Transfer to Change Loss Allocation
    • Conversion into Other Property
    • Change of Residence
  • Questions
  • Appendix - Sample Form
• Chapter 3 - U.S. Foreign Tax Credit - Basic Concepts
  • Learning Objectives
  • Choosing a Deduction or a Credit
    • The Ten-Year Rule
    • Scope of the Ten-Year Rule
  • Creditable Foreign Taxes
    • Tax Imposed on Foreign-Source Income
    • Allocation and Apportionment of Expenses
    • Types of Credits
    • Taxes on"Income"
    • Taxes on "Net Income"
    • Computation of Foreign Pretax Income
    • Notional Computations of Income
  • Substitution Taxes
    • Taxes Imposed in Lieu of an Income Tax
  • Recognition Issue
    • Transactions That Are Not Realization Events
    • Deemed Dividends
  • Identifying the Obligor for Foreign Tax
    • Affiliate as Agent
    • Withholding
  • Questions
• Chapter 4 - U.S. Foreign Tax Credit - Special Rules
  • Learning Objectives
  • Foreign Tax Credit as a Financing Device
    • Tax Sparing
    • Integrated Income Tax System
    • Partnerships
    • When Tax Is Considered Paid
    • Foreign Tax Credit Limitation
    • Base Differences
    • Completion of Form 1118 for General Limitation Income
    • General Information Worksheet and Supporting Worksheets
  • Questions
  • Appendix - Sample Forms
• Chapter 5 - Initiation of Foreign Operations
  • Learning Objectives
  • Blocked Income
    • Treatment of Blocked Income
    • Release of Funds
    • Accounting for Expenses
    • Method of Reporting
  • Taxation in Foreign Countries
    • General Rules
    • The Distributorship Risk
    • Protective Measures
  • Treaties and Export Income
    • Taxes Covered
    • Jurisdictions Covered
    • Treaties and the Internal Revenue Code
    • Claiming That a Treaty Provision Overrides the Code
    • Treatment of Export Income
    • U.S. Competent Authority Aid
  • Payments to Foreign Officials
  • Export Incentives
    • Western Hemisphere Trade Corporations
    • Domestic International Sales Corporations
    • Foreign Sales Corporation
    • Foreign Trade Income
    • Qualifying Foreign Trade Property
    • Foreign Trading Gross Receipts
    • Foreign Economic Processes
    • Foreign Trade Income
    • Foreign Sale and Leasing Income
    • Calculation of Exclusion
  • Reporting Foreign Bank Accounts
    • Filing Requirements
  • Corporate Income Tax Return
    • Filing Requirements
  • International Boycotts
    • Filing Requirements
  • International Transportation of Currency
    • Filing Requirements
  • Questions
  • Appendix - Sample Forms
• Chapter 6 - Foreign Branches and Affiliated Companies
  • Learning Objectives
  • Operating Through a Foreign Branch
    • Introduction
    • General Considerations
    • Whether an Operation Is a Branch or a Corporation
    • Per Se Corporations
    • Form 8832 Election
    • No Election Made
    • Effect of Designations under Foreign Law
    • Threshold of Liability to Foreign Tax
    • The Corporate Shell Issue
  • Calculating Income of a Foreign Branch
    • Pre-1986 Rules
    • Classifications under Current Law
    • Qualified Business Units
    • Functional Currency
    • Computation of Net Earnings
    • Payment of Foreign Taxes
    • Adjustments for Remittances
    • The U.S. Dollar Election
  • Transfers of Property
    • Pre-Section 367 Rules
    • Section 367 Rules
    • General Provisions
    • The Internal Contradiction of Section 367
    • Using the Active Business Exception
    • Exceptions to the Active Business Exception
    • Reporting Transfers of Property
    • Transfers of Certain Intangible Property
  • Incorporating a Foreign Branch
    • Overall Loss Recapture
    • Definition of"Foreign Branch"
    • Computing the Loss Recapture Amount
    • Overall Foreign Loss Recapture on Sale of CFC Stock
    • Recharacterization of Overall Domestic Loss
  • Reporting Requirements for Foreign Branches and Affiliates
    • Corporate Foreign Tax Credit - Form 1118
    • Schedule A
    • Schedule C
    • Schedule D - Second-Tier Tax
    • Schedule B
  • Reporting Requirements for Foreign Affiliates - Form 5471
    • Purpose of the Form
    • Filing Responsibility
  • Questions
  • Appendix - Sample Forms
• Chapter 7 - Indirect Sale or Use of Tangible Property
  • Learning Objectives
  • Determining the Transfer Price
    • General Considerations
    • Pricing under the Regulations
    • The Comparable Uncontrolled Price Method (CUP)
    • The Resale Price Method
    • The Cost Plus Method
    • The Comparable Profits Method
    • Other Methods
    • Best Method Rule
    • Confirmation of Results by Another Method
    • Range Concept
  • Controlled Foreign Corporations
    • General Considerations
    • Determining Control
  • Foreign Base Company Sales Income
    • Branch Rule
    • The Concept of Economic Risk and Attributed Activities - Revenue Ruling 75-7
    • Ashland Oil Decision
  • Exceptions from Subpart F Treatment
    • Exception for Income Subject to High Foreign Tax
    • Accounting Elections in Computing Taxable Income of a Controlled Foreign Corporation
    • Election to Exclude Net Foreign Currency Gains from Personal Holding Company Income
    • Election to Include Foreign Currency Gains and Losses in Foreign Personal Holding Company Income
    • Deducting Interest Expense
    • Election by Individual Shareholders of a Controlled Foreign Corporation
  • Distributions by Controlled Foreign Corporations
    • Allocation of Distributions among Different Types of Earnings and Profits
    • Current and Accumulated Earnings and Profits
    • Effect of Deficit in Earnings and Profits
    • Adjustments to Basis
    • Repatriation
    • Overall Foreign Loss Recapture on Sale of CFC Stock
  • Passive Assets
    • Section 956 Amount
    • Ordinary and Necessary Exception
    • Earnings and Profits
    • Relation to CFC's Earnings and Profits
    • Effect of Previously Taxed Investment in U.S. Property
    • Passive Foreign Investment Companies
    • Ordinary and Necessary Exception
    • QEF Regulations
    • Ownership through a PFIC
    • Ownership through a Partnership or an S Corporation
    • Planning Considerations
    • Dispositions of PFIC Stock
    • Indirect Dispositions
    • Distributions by PFICs
    • Elections to Purge PFIC Taint
    • Final Regulations
    • Time for Making the Elections
  • Questions
• Chapter 8 - Foreign Business Operations in the United States
  • Learning Objectives
  • Transactions with Unrelated U.S. Customers
  • U.S. Branch Operations
    • Buying Office
    • Manufacturing Branch
    • Branch vs. Subsidiary Corporation
    • Per Se Corporations
    • Form 8832 Election
    • No Election Made
    • U.S. Taxation of Branch Operations
    • Threshold for Taxation
    • Sourcing of Income
    • Engaged in a U.S. Trade or Business Requirement
    • Effectively Connected Requirement
    • Branch Profits Tax
    • Currency
  • Incorporation of U.S. Branch Operation
    • Transfer of Assets to a U.S. Subsidiary
    • Tax Concerns of Assets Transfers
    • Use of Interim Holding Company
    • U.S. Tax Implications
    • Transfer Pricing of Holding Company
  • Tax Issues of Financing the U.S. Subsidiary
    • Equity
    • Guarantee of U.S. Borrowing
    • Loan
    • Debt or Equity Characterization
    • Provision of Goods, Services, and Support
  • Use of Noncorporate Entities
    • U.S. Partnerships
    • U.S. Limited Liability Company
    • U.S. Joint Venture
    • Substantive Tax Issues of U.S. Joint Venture
  • U.S. Tax Reporting
• Chapter 9 - Foreign Business Sales of Tangible Property in the United States
  • Learning Objectives
  • Taxation of Foreign Business in the United States
    • Characterization of the Transaction
    • Source of Income
    • Withholding on U.S.-Source Sales Income
    • Conducting a U.S. Trade or Business
    • Effectively Connected Income
    • Branch Profits Tax
  • Transfer Pricing of Inbound Tangible Property
    • Inbound Distribution Activity
    • Market Share Development or Market Penetration
• Chapter 10 - Foreign Business Provision of Services in the United States
  • Learning Objectives
  • Taxation of Foreign Service Provider in the United States
    • Expense for Service Payments
    • Source of Income
    • Withholding on U.S-Source Service Income
    • U.S. Trade or Business or Permanent Establishment
    • Branch Profits Tax
    • Foreign Corporation Employees as U.S. Residents
  • U.S. Tax Reporting
• Chapter 11 - Exploitation of Business Assets Outside the United States
  • Learning Objectives
  • Taxation of Foreign Source Income
    • Sale of Property
    • Interest
  • License or Sale
    • More Than One Agreement
    • Lump-Sum Payments
  • Rental of Know-How or Provision of Services
    • Determining the Allocation
  • Royalties or Business Income
  • Reporting Foreign-Source Royalty Income
  • Questions
• Chapter 12 - Use of Foreign Tangible Property in the United States
  • Learning Objectives
  • Agreements for the Inbound Use of Tangible Property
  • Leases as a Financing Technique
  • Taxation of Foreign Lessor in the United States
    • Sale vs. Lease Characterization
    • Expense for Rental Payments
    • Source of Income
    • Withholding on U.S.-Source Rental Income
    • U.S. Trade or Business - Permanent Establishment
    • Effectively Connected
    • Branch Profits Tax
  • Transfer Pricing
  • U.S. Tax Reporting
• Chapter 13 - Use of Foreign Intangible Property in the United States
  • Learning Objectives
  • Taxation of Foreign Licensor in the United States
    • Timing of Expense for Royalty Payments
    • Source of Income
    • Withholding on U.S.-Source Royalty Income
    • U.S. Trade or Business - Permanent Establishment
    • Effectively Connected
    • Branch Profits Tax
  • Transfer Pricing
  • U.S. Tax Reporting
• Chapter 14 - U.S. Withholding Taxes on Foreign Businesses
  • Learning Objectives
  • U.S. Tax Withholding Requirements
  • Withholding at the Source
    • Non-Effectively Connected Fixed or Determinable Annual or Periodic (FDAP) Income
    • Partnership Allocations
    • Real Property
    • Anti-Conduit Financing
  • Non-Effectively Connected FDAP
  • Interest
    • Original Issue Discount
    • Portfolio Interest
    • Branch-Level Interest Tax
    • Treaty Matters
  • Dividends
    • Effectively Connected Dividends
    • Redemptions, Stock Dividends, and Exchanges
    • Section 304 Distributions
    • Section 306 Distributions
    • 80/20 Corporations
    • Treaty Matters
  • Royalties
  • Rents
  • Compensation for Services
    • Nonresident Alien Individuals
    • Foreign Corporations and Partnerships
  • Other Types of FDAP Income
    • Fixed
    • Determinable
    • Annual or Periodical
  • Gains from Sale of Personal Property
  • Effectively Connected Income Exemption
  • Anti-Conduit Financing Arrangements
  • Scope and Purpose
    • Conduit Entity
    • Financing Arrangements
  • Standard for Conduit Treatment
    • Multiple Intermediate Entities
    • Unrelated Intermediate Entities
  • Tax Avoidance Plan
  • Conduit Treatment
  • Relationship to Other Withholding Rules
  • Withholding Obligations and Procedures
  • Obligation to Withhold - Withholding Agent
    • Timing of Obligation to Withhold
    • Payees Subject to Withholding - Foreign Persons
    • Amount Subject to Withholding
    • Withholding Rates
  • Effect of Treaties on Withholding
    • Treaty Entitlement of Foreign Payee
    • Foreign Payee Performing Personal Services
    • Foreign Payee Receiving Effectively Connected Income
    • Foreign Payee Receiving Other Types of Income
    • Treaty-Based Return Position
  • Procedures for Withholding
    • Payment of Tax
    • Filing of Returns by Withholding Agent
    • U.S. Tax Return Filing by Foreign Payees
    • Refund of Overwithheld Taxes
  • Penalties for Failure to Withhold
    • Accuracy-Related Penalty
    • Fraud Penalty
    • Penalty for Failure to Deposit Taxes
    • Liability for Uncollected or Unpaid Tax
    • Criminal Penalties
  • Backup Withholding
    • Certification of Taxpayer Identification Number
    • Certification of Foreign Status
    • Corporate Status of Payee
  • Withholding Agreements
    • Withholding Cost Incurred by Foreign Payee
    • Withholding Cost Incurred by Payor
    • Withholding Cost Incurred by Payor beyond Foreign Tax Credit Benefit to Foreign Payee
    • No Authorization to Withhold and Indemnity Agreements
  • Partnership Allocations
  • Definition of Foreign Partner
  • Effectively Connected Taxable Income of Partnership
  • Withholding Agent's Payment and Reporting Requirements
  • Treatment of Foreign Partner's Share
  • Penalties for Failure to Withhold
  • Coordination with Other Withholding Regimes
  • Branch Profits Tax
  • Questions
  • Appendix - Sample Forms
• Chapter 15 - Ethics Focus: Taxation
  • Ethics Overview
  • Recent Developments
  • Spotlight on Independence in Tax Services
  • Key Ethical Dilemmas and Judgment Calls
  • Addressing Ethical Dilemmas
  • Available Resources
• Chapter 16 - Latest Developments

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