Foreign Derived Intangible Income (“FDII”)

Foreign derived intangible income (“FDII”), effective after the Tax Cuts and Jobs Act in 2017, provides another export tax incentive for U.S. businesses that sell goods and services abroad, reducing the effective tax rate on qualifying income to 13.125% from 21%.  Calculating qualifying income is a multi-step process to determine the FDII that qualifies for the 13.125% tax rate.  My services include calculating qualifying income, deemed tangible income return (“DTIR”), qualified business asset investment (“QBAI”), FDII deduction, and preparation of required tax returns including:

  • Form 8993, Deduction for FDII and GILTI
  • Form 5471, U.S., CFC Information Return
  • Form 5472, Foreign Person, USCo Information Return