BarbriSFCourseDetails
  1. keyboard_arrow_leftBack

Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Corporate Tax

Date & Time
  • event Date

    Tuesday, November 28, 2023

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$247.00
CPE
ALL

This webinar will discuss the U.S. limitations on interest deductions paid by multinational companies, thin capitalization restrictions imposed in other countries, and the OECD's recommendations for interest limitation rules. Our panel of international tax veterans will review Sections 163(j) and 267(a)(3) for U.S. restrictions, analyze similar limitations overseas, and provide suggestions for lowering the overall tax burden of international taxpayers with related party debt.

Faculty

Surbhi Bordia
Partner
Armanino, LLP

Ms. Bordia has over 10 years of public accounting experience. She addresses complex tax issues that impact international companies’ operations and puts tax efficient structures in place for her clients. Ms. Bordia’s hands-on experience in international tax, IP migration planning and legal entity rationalizations make her an expert consultant and key team player for clients in mergers and acquisitions. Ms. Bordia’s focus areas include GILTI, BEAT, FDII, anti-hybrid rules, foreign tax credits, subpart F, withholding tax, investments in U.S. property, FX gains and losses, treaty-related issues, outbound transfers and permanent establishment and profit attribution rules.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio
William R. Skinner
Partner
Fenwick & West LLP

Mr. Skinner focuses his practice on U.S. international taxation, with a particular emphasis on tax planning and international corporate transactions. He has broad experience in international tax issues for U.S. corporations, foreign corporations, and high net-worth individuals, and has represented clients across a variety of industries. He teaches international taxation as an adjunct professor in San Jose State University’s MST program, and speaks and writes frequently on international and corporate tax issues.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio

Description

Multinational corporations have historically structured loans with related companies in low-tax countries, creating large interest deductions that lower domestic taxes paid in high-tax rate countries, more or less converting equity into debt. Many countries, including the U.S., impose restrictions on these tax avoidance transactions and have enacted legislation restricting interest deductions.

Some countries have enacted earnings stripping or thin-capitalization rules to limit international debt shifting. Following OECD recommendations, Australia recently implemented an earnings-based test to restrict interest deductions to 30 percent of EBITDA effective July 1, 2023. In Europe, most countries have thin-capitalization rules in place using either earnings stripping or safe harbor rules to limit interest deductions.

In the U.S., Section 163(j) limits interest deductions to 30 percent of "adjusted taxable income." At the same time, 267(a)(3) requires MNCs to use the cash method of accounting for foreign intercompany debt deductions regardless of the method of accounting employed by the company. Tax practitioners working with overseas businesses must grasp the complexities of international debt deductions.

Listen as our panel of foreign tax experts analyzes the latest developments for deducting international interest payments.

Outline

  1. Introduction: deducting interest overseas
  2. U.S. rules
    1. 267(a)(3)
    2. 163(j)
    3. Other restrictions
  3. Update on non-U.S. and OECD developments
  4. Other considerations

Benefits

The panel will cover these and other critical issues:

  • How 163(j) impacts interest deductions for MNCs
  • The impact of 263(a)(3) on interest expense between related foreign taxpayers
  • OECD recommendations for interest limitation rules
  • Suggestions for structuring international related party debt

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Identify specific countries' responses to international debt shifting by MNCs
  • Determine how 267(a)(3) affects interest deductions between MNC related parties
  • Decide how OECD's recommendations impact rules limiting interest deductions
  • Ascertain how 163(j) restricts foreign taxpayer's interest deductions

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of international taxation including residency determination, foreign entity classifications, application of treaty benefits, as well as GILTI, Subpart F, and the related Section 250 deductions.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).