Television or Radio advertising on a Mississippi station;Telemarketing to Mississippi customers;Advertising on any type of billboard, wallscape, bus bench, interiors and exteriors of buses or other signage located in Mississippi;Advertising in Mississippi newspapers, magazines or other print media;Emails, texts, tweets and any form of messaging directed to a Mississippi customer;Online banner, text or pop up advertising directed toward Mississippi customers;Advertising to Mississippi customers through applications “apps” or other electronic means on customer’s phones or other devices; orDirect mail marketing to Mississippi customers.In the context of electronic commerce, the final regulation does not disclose any specific criteria the Department will use to determine whether any of these enumerated activities are “directed toward a Mississippi customer” as opposed to the online market generally. For example, a seller could sponsor an online banner or … [Read more...] about Mississippi Files Final Remote Seller Use Tax Regulation
Reduction of benefits under defined contribution plans as a means of raising tax revenues is not a novel idea. The Tax Reform Act of 2014 (the “2014 Tax Proposal”), which was introduced in 2014 by former Republican Congressman Dave Camp, included various provisions that would have potentially reduced the availability of, or tax benefits under, 401(k) plans and other defined contribution plans. A summary of certain of these provisions follows, along with an analysis of the potential impact on participants, plan sponsors and investment managers: … [Read more...] about Potential Impact of Trump Tax Reform Plan on Retirement Plans: What’s Old Could Be New Again
The IRS, on the other hand, argued that PTI distributions are not tax-exempt income of the partnership but merely the receipt of distributions that were previously included in gross income and taxed under Section 951. This is consistent with how the IRS views PTI distributions in the context of calculating the earnings and profits of a U.S. corporate shareholder of a CFC. In a recent General Legal Advice Memorandum (AM 2015-001), the IRS stated that “[u]nlike exempt income, PTI distributions constitute income that has already been subject to tax, rather than income that is never taxed.” … [Read more...] about Is a Distribution of Previously Taxed Income “Exempt from Tax”?
Other U.S. Tax ConsiderationsIt is important to note that, if the intermediary holding company is a CFC (controlled foreign corporation) for U.S. purposes, further planning may be needed to avoid triggering subpart F income on the company’s receipt of the dividend from the Chilean company (unless an exception already applies, e.g., the high-tax exception). In addition, given the high effective tax rates in Chile, foreign tax credit issues also will need to be addressed to avoid taxation of the same income multiple times. Finally, if the U.S. shareholder is a pass-through entity, rather than a C corporation for U.S. purposes, individual owners of that entity may benefit from receiving “qualified” dividends in the United States when dividends are received from the intermediary treaty resident company. This tax benefit would not otherwise be available to such shareholders if they received dividends directly from a Chilean entity, given that the Treaty is not yet in … [Read more...] about Recent Chilean Tax Reform Reinforces Need for U.S. Tax Treaty
For example, assume residents of Dubai establish a German company that has an active trade or business in Germany. Also assume that the German company establishes a subsidiary in Luxembourg that owns intellectual property which is licensed to the United States. The rate of withholding on royalties under both the U.S.-Luxembourg and U.S.-Germany income tax treaties is zero. Unlike Germany, however, Luxembourg has a favorable regime for the taxation of intellectual property resulting in an effective corporate income tax rate of approximately 5 percent. … [Read more...] about Local Law Shopping Through “Derivative Benefits” re: Tax on Foreign Income