The United States is well known for its complex income tax system. This course is intended to give participants an overview and a good understanding of the US system and its terms and concepts, with particular emphasis on international aspects. The main focus of the course will be on corporate taxation.

Day 1

08.30 - 09.00 Registration

09.00 - 09.20 Welcome and IBFD Overview

09.20 - 10.45 Introduction to US Tax System

– Overview of US Federal Tax System
– Legislative Process & Sources of U.S. Federal Tax Law
– Corporate Income Tax Rates
– Alternative Minimum Tax (AMT)
– Definition of Gross Income
– Capital Gains and Losses
– Deductible and Non-Deductible Expenses
– Earnings and Profits (E&P)
– Group Consolidation Rules

Group 10.45 - 11.00 Break – Coffee/Tea and Refreshments

11.00 - 12.00 Forms of Doing Business in the United States

– Factors to Consider When Going Global
– Domestic vs. Foreign Corporations
– Forms of Doing Business
– Aggregate and Entity Concepts
– Subchapter C Corporations
– Specialized Entities
– Subchapter S Corporations
– Limited Liability Companies (LLCs)
– General and Limited Partnerships
– Branches/Permanent Establishments
– Hybrid Entities & Check-the-Box Regulations

12.00 - 13.15 Lunch

13.15 - 14.15 U.S. Taxation of Foreign Corporations

– U.S. Sourcing Rules
– Taxation of Foreign Persons not Engaged in the U.S. Trade or Business
– Fixed or Determinable Annual or Periodic (FDAP) Definition

14.15 - 14.30 Break – Coffee/Tea and Refreshments

14.30 - 15.30 U.S. Taxation of Foreign Corporations (continued)


– Taxation of Foreign Persons Engaged in the U.S. Trade or Business
– U.S. Trade or Business Defined
– Effectively Connected Income
– Filing Requirements
– FIRPTA Tax (Investments in US Real Property)

15.30 - 15.45 Break – Coffee/Tea and Refreshments


15.45 - 17.00 U.S. Taxation of Foreign Corporations (continued)

– Branch Profits Tax and Branch Interest Tax
– Branch Loss Recapture Rules
– Anti-Abuse Provisions

 
Day 2

09.00 - 10.00 US Tax Treaties


– US Model Income Tax Convention
– U.S. Income Tax Treaty Network
– Overview of Selected Articles
– Domestic Law Treaty Overrides
– Reduction of US Withholding Taxes
– Treaty Based Return Positions

10.00 - 10.15 Break – Coffee/Tea and Refreshments

10.15 - 11.45 Double Taxation Relief

– Overview of US Tax Credit System
– Taxes & Taxpayers Eligible for Credit
– Types of Foreign Tax Credits
– Definition of Creditable Tax
– Income Baskets
– Foreign Tax Credit Limitation
– Carryback/Carryover of Excess FTCs
– Calculation of Indirect Tax Credit

11.45 - 13.00 Lunch

13.00 - 14.00 Foreign Activities of US Corporations


– Overview of Anti-Deferral Regimes
– Definition of CFC
– Controlled Foreign Corporation (CFC) Provisions
– Foreign Personal Holding Company Income

14.00 - 14.15 Break – Coffee/Tea and Refreshments

14.15 - 15.30 Foreign Activities of US Corporations (continued)

– Foreign Base Company Income (Sales & Service)
– Applicable Exclusions & Exceptions
– Exclusion of Distributions of Previously Taxed Earnings
– Investment in U.S. Property


15.30 - 15.45 Break – Coffee/Tea and Refreshments

15.45 - 17.00 Foreign Activities of US Corporations (continued)

– Section 1248 Tax on Sales of CFC Stock
– Passive Foreign Investment Companies (PFICs)
– Overlap of Anti-Deferral Regimes
– Tax Planning Techniques

Ania Loniewska, John Rienstra (IBFD, the Netherlans) and Eleni klaver, Carrera Legal, The Netherlands