Bass, Berry & Sims attorney Steve Jasper commented on a new Tennessee tax bill that excludes some foreign income from the state’s business excise tax. As of late April 2019, the bill had unanimously passed both the state House and Senate and was awaiting signature by the governor. The bill excludes most global intangible low-tax income (GILTI) and the transition tax on foreign earnings in calculating Tennessee taxable income. The exemptions in the bill aim to bring foreign-earned income back to the state. To offset the exemption, the legislation also requires adding back 5 percent of the relevant earnings from both areas.
“We had wanted and been working toward a complete decoupling,” Steve stated. “It was kind of a compromise to allow the 5 percent to be added back.” Steve represented clients in advocating for the legislation.
The full article, “Tennessee Tax Bill Exempting Foreign Income Heads to Governor,” was published by Bloomberg Law on April 22, 2019, and is available online (subscription required).