Corporate America Gets Clarity on Tax Bills for Offshore Profits

Multinational corporations got some long-awaited clarity from the IRS, which issued new rules on Friday clarifying how they must compute a new international tax.

The rules explain how companies should calculate a complex new tax on Gilti, or global intangible low-taxed income. The regulations finalize previous proposals that give companies some leeway to allocate only a portion of certain domestic expenses to their foreign subsidiaries and allow them to take advantage of unused foreign tax credits, both of which will effectively lower the amount of U.S. tax corporations owe.