The New Jersey Division of Taxation has issued updates on the taxation of Global Intangible Low Tax Income (GILTI) and Foreign-Derived Intangible Income (FDII) for tax years ending on or after July 31, 2023, as well as revisions to GILTI treatment for years before this date. These changes are outlined in Technical Bulletin No. TB-110 and Technical Bulletin No. TB-88(R), both released on September 12, 2023.
What Are GILTI and FDII?
GILTI addresses the taxation of income from foreign operations by U.S. multinational corporations, while FDII aims to incentivize U.S. companies to retain intellectual property within the United States.
These bulletins provide guidance on how GILTI and FDII will be taxed in New Jersey, impacting businesses operating in the state. Understanding these changes is crucial for compliance with state tax laws.
Staying informed about New Jersey’s taxation of GILTI and FDII is vital for businesses, as state tax regulations can affect their tax liabilities.
New Jersey’s taxation of GILTI and FDII is subject to evolving regulations. These recent bulletins offer insights into the taxation of these income categories, both for upcoming tax years and prior periods. Businesses in New Jersey should review these bulletins to ensure compliance with state tax laws.