What is form 8993 for?

[inshya]

I recently heard about IRS Form 8993, but I’m not clear on what it’s used for or who’s required to file it. From what I understand, it relates to the Foreign-Derived Intangible Income (FDII) and Global Intangible Low-Taxed Income (GILTI) deduction. Can someone explain what this form reports, when it’s needed, and how it affects a corporation’s tax liability? Any insights or filing tips would be really helpful!

 

[Rick_Grimes]

Form 8993 is used by U.S. businesses to calculate and report the deduction for Foreign-Derived Intangible Income (FDII) and Global Intangible Low-Taxed Income (GILTI). Basically, it helps figure out how much of those foreign-related profits qualify for a tax deduction under section 250 of the IRS code.

 

[isabel]

Corporations claim the FDII and GILTI deductions on Form 8993 and use it to calculate these deductions, which helps them avoid paying U.S. tax on some foreign income. It is normally submitted with the corporate tax return.

 

[Jarwish]

Form 8993 is used by U.S. corporations to calculate and report the deduction for Foreign-Derived Intangible Income (FDII) and Global Intangible Low-Taxed Income (GILTI) under Section 250. It helps determine how much of a corporation’s foreign income qualifies for tax deductions, reducing overall taxable income.

 

[Gsusangrey]

Domestic corporations utilize IRS Form 8993 to compute and submit a Section 250 deduction. Their Global Intangible Low-Taxed Income (GILTI) and Foreign-Derived Intangible Income (FDII) are eligible for this deduction, which essentially reduces the U.S. tax rate on specific foreign earnings.

 

[Mayank]

Form 8993 is used by U.S. taxpayers to compute the Section 250 deduction for foreign-derived intangible income (FDII) and global intangible low-taxed income (GILTI). It helps determine the eligible deduction for certain income from foreign sources.