The proposed regulations provide rules for identifying which taxpayers are subject to the BEAT and for computing BEAT liability.
Key Points:
The base erosion and anti-abuse tax (BEAT) proposed regulations:
..Aggregate corporations related by 50% common ownership, including foreign corporations to the extent of their effectively connected income
..Coordinate BEAT liability computation with limitations on business interest expense deductions under Section 163(j)
..Expand base erosion payments to include any form of consideration, including cash, property, the assumption of liabilities, and even stock used in nonrecognition transactions subject to Section 332, 351, or 368
..Look through partnerships in defining payments subject to the BEAT
..Exclude payments for cost component of intercompany services eligible for the services cost method, even if subject to a markup
Please see full publication below for more information.
