Proposed Regulations Issued on Source of Income for Certain Sales of Personal Property

The Treasury Department and 美国国税局 recently released proposed regulations (REG-100956-19) that modify the rules for determining the source of income from sales of inventory produced within the United States and sold outside of the United States. 这些规则对美国和欧洲都很重要.S. 居民及非居民.

居民

Section 863 provides rules for determining the source of income, including income derived from sales of inventory produced partly within and partly outside of the United States.

在2017年减税和就业法案(TCJA)之前, the income from the sale or exchange of inventory property produced (in whole or in part) by a 税payer within the United States and sold or exchanged abroad, 反之亦然, would be treated as derived partly from sources within and partly from sources outside of the United States. However, the pre-TCJA rules did not provide the basis for such allocation or apportionment.

The TCJA amended Section 863 to allocate or apportion income from Section 863 sales based solely on production activities. 新规定代表着重大变化，尤其是对美国企业而言.S. 在跨境环境中运作的纳税人. 因此, the income from the sale or exchange of inventory property is now allocated based only on production activities with respect to that inventory.

非居民

The regulations propose new rules for determining the source of income from sales of personal property (including inventory) by nonresidents that are attributable to an office or other fixed place of business that nonresidents maintain in the United States. 此外, regulations introduce a change to the rules for determining whether foreign-source income is effectively connected with the conduct of a trade or business within the United States. 例如, the regulations adopt the “50/50 method” as the default rule for allocating income from IRC Section 865(e)(2) – sales between sales and production activities – but permit 税payers to elect to use a modified “books and record” method.

结论

Federal Register published proposed regulations on December 30, 2019. The proposed regulations apply to 税 years ending on or after December 23, 2019. 另外, 税payers have an option to rely on the rules in the proposed regulations for 税 years beginning after December 31, 2017.

The application of the proposed regulations could change the amount of foreign-source income and the amount of foreign 税 credits. The 税payers should assess the impact of the proposed regulations changes to determine if they should be applied before regulations are finalized.