Georgia passes legislation to provide deduction of GILTI from the state tax base

Eversheds Sutherland (US) LLP
Contact

Eversheds Sutherland (US) LLP

On March 21, 2018, the Georgia Legislature passed SB 328 (the Bill) to exclude IRC § 951A (GILTI ) from Georgia taxable income. The Bill treats GILTI as Subpart F income for purposes of the deduction under OCGA § 48-7-21(b)(8).

Earlier in this legislative session, Georgia updated its conformity to the IRC to February 9, 2018, with the enactment of HB 918. HB 918 specifically excluded GILTI from the state’s dividends received deduction and thus GILTI would therefore be included in taxpayers’ Georgia taxable income. HB 918 also provided that the deduction under IRC § 250 would apply to the extent that the related income is included in Georgia taxable income. Subsequent to the passage of HB 918, the business community rallied to inform legislators of the potential negative impact of state GILTI inclusion on Georgia businesses, including: the misalignment of the state’s taxation of GILTI without the corresponding offset for foreign taxes paid, the departure from Georgia’s long-standing policy of not taxing the foreign income of foreign subsidiaries, and the potential constitutional challenges to state taxation of GILTI. SB 328 now awaits Georgia Gov. Nathan Deal’s signature.

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Eversheds Sutherland (US) LLP | Attorney Advertising

Written by:

Eversheds Sutherland (US) LLP
Contact
more
less

Eversheds Sutherland (US) LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.