Foreign tax credit services

Foreign tax credit rules apply broadly across multiple industries, sectors and taxpayer types. Computing the FTC is complex and requires a significant amount of information. However, understanding and modeling the impact of FTC rules will have on your organization may maximize planning opportunities, minimize risk and increase liquidity.

RSM’s FTC planning and reporting services can benefit any business subject to foreign tax through direct cross-border operations or through the operations of subsidiaries and disregarded entities. These services are particularly beneficial for businesses engaged in the following activities:

RSM’s comprehensive services to assist taxpayers in maximizing their FTCs include the following:

• Obtaining refunds for prior year amended returns
• Providing options for shielding income pickup
• Planning transactions that trigger tax but are offset by the FTC

There are many aspects to consider in calculating the FTC, including eligibility, limitations, income/loss allocations, the effect of making or revoking certain elections, and the impact on the global effective tax rate. Having a thorough understanding of all these variables and how they interact can help you make better decisions.