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Repatriation Tax Planning: Inbound Asset Transfers, Cash Dividends and Other Strategies for Tax Professionals

This webinar will guide tax professionals and advisers on tax challenges involving inbound asset transfers, cash dividends and other repatriation strategies post-tax-reform. Fenwick tax partners David Forst and William Skinner will discuss tax issues associated with inbound liquidations under Section 332 and reorganizations under Section 368, actual and deemed dividends, Section 245A participation exemption, and tax planning methods to achieve and maintain tax benefits for the U.S. taxpayer.​

More About the Webinar
Tax reform had a significant impact on the earnings and profits of U.S. taxpayers regarding inbound asset transfers. The new tax law, specifically the imposition of Section 965, GILTI and Section 245A, altered the application of Section 367(b) and the tax planning issues and considerations for repatriation of foreign cash, requiring careful planning by tax professionals to ensure that U.S. taxpayers obtain any allowable tax benefits.

Before tax reform, such earnings and profits were considered deemed dividends and fully taxable. Now, earnings and profits from inbound asset transfers may be subject to other newly enacted tax rules that avoid the application of Section 367(b), such as the conversion of pre-tax reform earnings into previously taxed income under Section 965 or earnings and profits previously taxed under subpart F or GILTI. Previously taxed income and the participation exemption may support tax-free dividends out of much foreign earnings and profits.

Any deemed dividends from inbound asset transfers taxable to an acquiring U.S. corporation or its shareholders may also qualify as tax-free transactions under subchapter C rules as applied to liquidations and reorganizations or be fully deductible under new Section 245A by meeting specific requirements. Tax professionals and advisers must become knowledgeable of the impact of newly enacted tax law on inbound asset transfers to properly advise taxpayers and develop planning methods to ensure an optimum level of tax benefits.

Listen as our panel discusses the application of Section 367(b) to inbound asset transfers, the taxation of such earnings or profits to U.S. taxpayers, the impact of newly enacted tax law, and tax planning methods to achieve and maintain tax benefits to U.S taxpayers.​​​​