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Form 1118, Foreign Tax Credit - Corporations

Form 8993, Foreign derived intangible income

The Foreign derived intangible income screens and computes were added to ONESOURCE Income Tax International for the 2022 tax year. We added the option to transfer the calculated Section 250 adjustments to
Income Sourcing
 for the 2023 tax year.

Compute options

In a top consolidation there are 4 compute options.
On the TAS navigation tree, select
FTC Defaults
. You will see the
Foreign Derived Intangible Income Calculation
 area at the bottom of the screen.
Run FDII Calculation during TIBS
  • Calculates the amounts for the Foreign Derived Intangible Income reports in TIBS Reports, and
  • Calculates the amounts to transfer to Foreign Derived Intangible Income, Income Sourcing, and Form 8993.
Transfer to FDII Workpaper
  • Transfers to Foreign Derived Intangible Income Part I and Part II in the parent, subsidiaries, and divisional consolidations during the TIBS compute.
Transfer to Form 8993 during US1118 Transfer
  • Transfers to Form 8993 in the Organizer and Tax Forms during the Transfer to US1118 compute.
Transfer Section 250 amounts to Income Sourcing during TIBS
  • Transfers the computed Section 250 adjustments to Income Sourcing to the summary accounts with account types 5850 – Section 250(a)(1)(A) – FDII and 5860 – Section 250(a)(1)(B) – GILTI in the parent, subsidiaries, divisional consolidations, and the 1st division in each divisional consolidation.

Data sources

  1. Includes GILTI amounts from the Subpart F compute that are transferred to the U.S. shareholder during the TAS Compute with Transfer International.
    1. GILTI amounts will be 0, if Subpart F or Transfer International hasn’t computed.
  2. Includes data from the Income Sourcing,
    Interest Apportionment Information
    ,
    Operating Assets
    ,
    Basis in Subsidiaries
    , and Foreign Income Taxes for Form 1118.
  3. Partnership and QBAI amounts don't automatically populate.
  4. Foreign Derived Intangible Income can be manually populated or batch imported.
    1. Lock information transferred from International Computes to this screen prevents changes during TIBS computes.
  5. After populating or updating data in the members, in the top consolidation perform a TAS Consolidate with compute all underlying consolidations for Federal TAS, before computing TIBS.

Reports

  1. Select
    International Reports
    , then
    TIBS Reports
     to see the Foreign Derived Intangible Income report.
  2. FDII Workpaper reports for Part I and Part II have columns for computed and override amounts.

Form 8993 in Organizer

In Organizer, select
Foreign Information
Section 250 for FDII and GILTI
General Information
.
Check
Generate Form 8993
 in entities (top consolidation, divisional consolidation, division, parent, subsidiary) with amounts.

This article applies to:

  • Product: ONESOURCE International Tax, ONESOURCE Income Tax
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