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March 27, 2018
2018-0678

Georgia enacts law to exclude GILTI from the corporate income tax base

On March 26, 2018, Governor Nathan Deal signed SB 328 to exclude global intangible low tax income (GILTI) (as described in IRC Section 951A) from the Georgia corporate income tax base. Enactment of SB 328 reverses a recently enacted law change (HB 918, enacted March 2, 2018) that effectively subjected GILTI to Georgia taxation.1

Provisions of HB 918 amended Ga. Code Section 48-7-21(8)(A) to provide that when subtracting dividends received from taxable income, dividends received from sources outside the US will not include income specified in IRC Section 951A (i.e., GILTI).

SB 328, applicable to all tax years beginning on or after January 1, 2018, reverses this law change by deleting the IRC Section 951A language added by HB 918 and expanding the "amounts to be subtracted" provision to specifically include income under IRC Section 951A. It also clarifies how the corresponding deduction provided by IRC Section 250 intersects with this subtraction amount for Georgia income tax purposes.

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Contact Information
For additional information concerning this Alert, please contact:
 
State and Local Taxation Group
• Russ Snider(404) 817-5862;

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ENDNOTES

1 For a discussion of the tax law changes enacted under HB 918, see Tax Alert 2018-0504.

 

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