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.