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15 May 2018

US: Anticipated timing for Treasury regulations on several TCJA international provisions

Two recent releases provide an update on the timing for guidance on the international provisions included in the United States (US) Tax Cuts and Jobs Act of 2017 (TCJA). The OMB1 Office of Information and Regulatory Affairs (OIRA) Spring Agenda lists numerous planned Treasury regulations, including several on international TCJA provisions, and also includes anticipated timelines for the projects.

Regulatory projects listed in the OIRA Spring Agenda include:

  1. Proposed regulations on the Internal Revenue Code2 Section 965 transition tax, planned for August 2018
  2. Proposed regulations on foreign tax credit issues arising under the TCJA, planned for August 2018
  3. Proposed regulations on the inclusion of global intangible low-taxed income (GILTI) under Section 951A, planned for September 2018
  4. Proposed regulations on the base-erosion and anti-abuse tax (BEAT) under Section 59A, planned for October 2018
  5. Proposed regulations on dividend received deduction under Section 245A and branch loss recapture issues under Section 91, planned for April 2019

In addition, the Treasury and Internal Revenue Service (Treasury/IRS) released a third quarter update to the 2017-18 Priority Guidance Plan on projects anticipated to be released during the guidance plan year ending 30 June 2018. For a detailed discussion of the international projects included in the 2017-18 initial plan, see EY Global Tax Alert, US Treasury and IRS 2017-2018 Priority Guidance Plan shifts focus to reducing burdens and complexity, dated 31 October 2017.

Treasury/IRS previously added projects implementing some TCJA international provisions (Sections 965 and 163(j)) to the second quarter update to the Priority Guidance Plan that was released in February 2018.3 The third quarter update contains 13 additional projects, and adds one new international project:

  • Final regulations under Sections 7874, 367, 956, 7701(l), and 304 regarding inversions and related transactions (temporary and proposed regulations were published on 8 April 2016).

Implications

The actual release of guidance on TCJA provisions can obviously be impacted by many factors, and the anticipated release dates indicated by Treasury/IRS and OIRA are not certain. Nonetheless, it is welcome news that the Government is prioritizing these items, especially for the TCJA provisions that are currently effective.

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ENDNOTES

1 Office of Management and Budget.

2 All "Section" references are to the Internal Revenue Code of 1986, and the regulations promulgated thereunder.

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CONTACTS

For additional information with respect to this Alert, please contact the following:

Ernst & Young LLP, US International Tax Services

  • Jose Murillo, Washington DC
    jose.murillo@ey.com
  • Joe Ryan, Chicago
    joe.ryan@ey.com

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