Global Intangible Low-Taxed Income (GILTI)

Global Intangible Low-Taxed Income (GILTI) is a provision in U.S. tax law designed to tax profits that U.S. companies earn from their foreign subsidiaries. It targets income from intangible assets, like patents and trademarks, that is generated in low-tax countries. GILTI aims to discourage companies from shifting profits to these low-tax jurisdictions to avoid U.S. taxes. Under GILTI, U.S. companies must pay a minimum tax rate on this income, ensuring that they contribute fairly to U.S. tax revenues, even if those profits are held overseas.