U.S. Taxation of International Transactions

In this module, you will first become familiar with the course, your instructor and your classmates, and our learning environment. This orientation will also help you obtain the technical skills required to navigate and be successful in this course. Next, we will begin our discussion of U.S. international taxation by discussing the baseline theories used to prevent international double taxation and the different jurisdictional bases for imposing taxation on international transactions. We will then discuss specific tests to determine when a taxpayer is a U.S. resident vs. non-resident. We will discuss system of worldwide taxation generally employed by the United States and major exceptions to that system. And, we will conclude with a discussion of how income is "sourced" to either the United States or a foreign jurisdiction using the sourcing rules of the United States.

In this module we will start with a basic introduction to inbound taxation issues, including a discussion of the Fixed, Determinable, Annual, and Periodical (FDAP) Income and Effectively Connected Income (ECI) taxing regimes. We'll then discuss the branch profits tax, which supports the ECI taxing regime. Next, we'll turn to understanding how tax treaties impact existing international taxation rules. Then, we'll cover transfer pricing issues, including a discussion of the new Base Erosion and Anti-Abuse Tax (BEAT). We'll conclude with a discussion of export incentives available to U.S. taxpayers selling abroad.

In this module we will be introduced to the Subpart F and Global Intangible Low Taxed Income (GILTI) regimes. These taxing regimes will cause certain foreign income earned by U.S. Shareholders through Controlled Foreign Corporations (CFCs) to be currently taxable in the United States. Specifically in this module we will learn to identify when a U.S. person is a U.S. Shareholder and when a foreign corporation is a CFC. We will also learn about what types of income constitute Subpart F. And, how GILTI is computed. We will conclude with a discussion of the Passive Foreign Investment Company (PFIC) rules which cover U.S. persons investing in foreign corporations that are not CFCs.