The Tax Cuts and Jobs Act (TCJA) effectively cuts the tax U.S. companies owe on royalties from overseas use of intangible assets and intellectual property.
Aimed at giving U.S. taxpayers incentive to hold patents in the U.S. rather than abroad, the lower tax rate on foreign-derived intangible income (FDII) gives U.S. taxpayers incentive to hold patents in the U.S. rather than abroad.
The Treasury Department will offer more guidance by year-end. Find out more.