What’s the Difference Between FDII and GILTI?

The foreign-derived intangible income (FDII) and global intangible low-taxed income (GILTI) regimes are an attempt by Congress to use tax reform to encourage international tax planning by U.S. multinational corporations that increases investments in the U.S. The intent appears to have been to favor structures where a multinational corporation holds its high-return, foreign-income-producing assets and operations in the U.S. instead of adopting a corporate tax planning strategy that places those assets and operations in overseas subsidiaries.

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