International Tax

GILTI

GILTI stands for global intangible low-taxed income, a US tax regime affecting certain owners of controlled foreign corporations.

Quick answer

GILTI stands for global intangible low-taxed income, a US tax regime affecting certain owners of controlled foreign corporations.

It matters because US owners can face tax inclusions even when the foreign company did not distribute cash.

A US shareholder in a profitable foreign operating company may need to analyze GILTI exposure each year.

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Plain-English Definition

What GILTI means

GILTI stands for global intangible low-taxed income, a US tax regime affecting certain owners of controlled foreign corporations.

Why it matters It matters because US owners can face tax inclusions even when the foreign company did not distribute cash.
Simple example A US shareholder in a profitable foreign operating company may need to analyze GILTI exposure each year.
Related Questions

Questions people ask about GILTI

What does GILTI mean?

GILTI stands for global intangible low-taxed income, a US tax regime affecting certain owners of controlled foreign corporations.

Why does GILTI matter?

It matters because US owners can face tax inclusions even when the foreign company did not distribute cash.

What is a simple example of GILTI?

A US shareholder in a profitable foreign operating company may need to analyze GILTI exposure each year.

When should I ask a CPA about GILTI?

Ask a CPA when the term affects foreign reporting, double taxation, expat filing, or account disclosure rules.

How is GILTI different from Controlled Foreign Corporation?

GILTI means GILTI stands for global intangible low-taxed income, a US tax regime affecting certain owners of controlled foreign corporations. Controlled Foreign Corporation means A controlled foreign corporation, or CFC, is a foreign corporation that is sufficiently owned by certain US shareholders under US tax rules. The difference is that they apply to different tax, accounting, or business situations and should not be treated as interchangeable.

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