Under current law, U.S. corporations can defer payment of U.S. income tax on profits from offshore subsidiaries until those are repatriated.

Biden proposed ending TCJA incentives for multinationals. Additionally, according to Biden’s website, he would establish a “claw-back” provision to “force” a return of public investments and tax benefits when businesses close in the U.S. to send jobs overseas. Additionally, Biden proposed “tightening” anti-inversion laws.


Generally, Global Intangible Low Tax Income (GILTI) was enacted under the TCJA as an anti-base erosion provision. GILTI is a tax on earnings that exceed a 10 percent return on a company’s invested foreign assets.

Biden proposed doubling the tax rate on GILTI earned by foreign subsidiaries of U.S. firms from 10.5 percent to 21 percent.


For more information about this international tax policy update, contact Larson & Company.