New York City Tax Treatment of Deemed Repatriation Income, FDII, and GILTI

Corey L. Rosenthal, JD, Peter Rabinowitz, JD, and Jessie Hu

On September 2, 2019, the New York City Department of Finance released Finance Memorandum 18-9, New York City Tax Treatment of Foreign-Derived Intangible Income Deduction, Global Intangible Low-Taxed Income, and Repatriation Amounts under the Business Corporation Tax, which addressed the city's treatment of mandatory deemed repatriation income, foreign-derived intangible income (FDII), and global intangible low-taxed income (GILTI) under the city's general corporation tax, unincorporated business tax, and banking corporation tax. This article will provide CPAs with an overview of these complex rules that further complicate compliance for companies that file in both New York State and New York City.