

The preamble acknowledges the uncertainty regarding when an individual may make the IRC Sec. 962 election to take into account the deduction for GILTI under IRC Sec. A significant development in the regulations is the elimination of certain documentation for determining the foreign destination requirements to substantiate income from sales and services as foreign derived.Īnother notable development is that the regulations permit individuals making an IRC Sec. For the most part, the final regulations adopt the proposed regulations issued by Treasury in March of 2019. On July 9, 2020, Treasury and the IRS released final regulations on the foreign-derived intangible income (FDII) and global intangible low-taxed income (GILTI) deduction under IRC Sec.
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