Intercompany Receipts

The Intercompany Receipts screen is used to enter any dividends, interest, rents, or royalty payments a foreign entity may have received from a related foreign company.
When entering the payment information, an FPHCI Indicator is required. The FPHCI Indicator determines how the system resources the Look-Through income. FPHCI indicators can be:
  • (0) Non-Subpart F Income Subject to Look-Through
    : The payment appears in the recipient’s E&P exactly as it was sourced in the payor’s E&P. This selection can be used to indicate Same Country Exception.
  • (1) Subpart F Income
    : The payment appears in the recipient’s E&P as Subpart F income. During calculation, the system automatically moves the intercompany income to a Subpart F source code in the recipient’s E&P if it is not already sourced to a Subpart F source code.

Entering Intercompany Receipts

  1. On the TAS navigation tree, select the
    Foreign Entity
    folder.
  2. Select
    Look-Thru Transactions > Intercompany Receipts
    .
  3. On the
    Dividends
    screen, select the
    Payor
    of the dividend.
  4. Enter the date the dividend was paid.
  5. Enter the
    Recipient Amount
    in functional currency of the dividend.
  6. Select an
    FPHCI Indicator
    from the dropdown.
  7. Enter the
    Related Withholding
    in functional currency of the dividend.
  8. Enter the
    Related Other Expenses
    in functional currency of the dividend.
  9. Select
    Save
    .

Entering Intercompany Interest, Rent, or Royalty Receipts

  1. On the TAS navigation tree, select the
    Foreign Entity
    folder.
  2. Select
    Look-Thru Transactions > Intercompany Receipts
    .
  3. Select
    Interest, Rent
    ,
    Royalties
    .
  4. Under the transaction type, select the
    Payor
    on the next available blank line.
  5. Select an
    FPHCI Indicator
    from the dropdown.
  6. Enter the
    Recipient Amount
    in functional currency of the dividend.
  7. Enter the
    Related Withholding
    in functional currency of the dividend.
  8. Enter the
    Related Other Expenses
    in functional currency of the dividend.
  9. Select
    Save
    .

Look Through Transaction Tips

The
Remaining Amount to be Allocated
is calculated as follows:
  • The sum of the trial balance amounts in the Sourcing Workpaper for the accounts with the income account type (multiplied by -1 to make the total positive if necessary) associated with the current tab less the sum of the values in the Recipient Amount column of this tab.
  • The
    Dividends
    tab of the Intercompany Payments screen does not have a
    Remaining Amount to be Allocated
    since there is no amount on the Sourcing Workpaper to reconcile.
  • Include Intercompany Rents, Royalties and Interest Receipts in the same import file.
  • If more than one dividend transaction occurs between the same payor and recipient pair on the same date, the payments and receipts should be grouped together and entered as one transaction.
  • Dividends paid to an entity which is not a direct owner of the paying entity will not appear as part of gross income for the Recipient in the Subpart F reports. These same payments may not appear correctly in the payor's Subpart F reports. To resolve this, set the Recipient as an owner of the Payor with an ownership percentage of zero.
  • Using the information in the table below, the Look Through computes verify that the total of the amounts on the intercompany screens match associated amounts in the Sourcing Workpaper. If the amounts do not match, the system generates a Look Through error or warning and the compute cannot be completed until it has been resolved.
Account Description
Detail Screen
Tab
Column
1010
Dividends - CFC Intercompany Income
Intercompany Receipts
Dividends
Recipient Amount
1120
Interest - CFC Intercompany Income
Intercompany Receipts
Interest, Rent, Royalties
Recipient Amount
1170
Royalties - CFC Intercompany Income
Intercompany Receipts
Interest, Rent, Royalties
Recipient Amount
1220
Rents - CFC Intercompany Income
Intercompany Receipts
Interest, Rent, Royalties
Recipient Amount
4470
Rent - CFC Intercompany Payments
Intercompany Payments
Interest, Rent, Royalties
Payor Amounts
4480
Royalties - CFC Intercompany Payments
Intercompany Payments
Interest, Rent, Royalties
Payor Amounts
5170
Interest - CFC Intercompany Payments
Intercompany Payments
Interest, Rent, Royalties
Payor Amounts
  • In the
    Withholding Tax
    field of the Intercompany Receipts screens, enter the withholding taxes paid by the recipient which specifically relate to the transaction. Withholding taxes should be expressed in the recipient's functional currency and will be reapportioned according to the reallocation of the look-through income.
  • The
    Related Other Expenses
    field contains other expenses paid by the recipient which are related to this transaction. Enter amounts in the recipient's functional currency. They will be reapportioned according to the reallocation of the Look Through income. The system verifies that the amount entered does not exceed the amount for the type of look-through income in the recipient's trial balance.
Account Description
Detail Screen
Tab
Column
4810
Withholding Tax - CFC Intercompany Rental Income
Intercompany Receipts
Interest, Rent, Royalties
Related Withholding Tax
4820
Withholding Tax - CFC Intercompany Royalty Income
Intercompany Receipts
Interest, Rent, Royalties
Related Withholding Tax
4830
Withholding Tax - CFC Intercompany Interest Income
Intercompany Receipts
Interest, Rent, Royalties
Related Withholding Tax
4840
Withholding Tax - CFC Intercompany Dividend Income
Intercompany Receipts
Dividends
Related Withholding Tax
5010
Other Expenses - CFC Intercompany Rental Income
Intercompany Receipts
Interest, Rent, Royalties
Relayed Other Expenses
5020
Other Expenses - CFC Intercompany Royalty Income
Intercompany Receipts
Interest, Rent, Royalties
Relayed Other Expenses
5030
Other Expenses - CFC Intercompany Interest Income
Intercompany Receipts
Interest, Rent, Royalties
Relayed Other Expenses
5040
Other Expenses - CFC Intercompany Dividend Income
Intercompany Receipts
Dividends
Relayed Other Expenses
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