2019년 8월 15일에 미국 재무 회계 기준위원회(“FASB”)에서 회계기준 업데이트 제안(“proposed ASU”)을 발표함에 따라, 비 상장 기업들이 몇몇 새로운 회계기준을 적용하는 데에 조금 더 시간이 주어질 것으로 예상된다. 이에 해당하는 회계기준은 1. 기대신용손실(“CECL”), 2. 리스(Leases), 그리고 위험관리회계(Hedging)이다. FASB는 이해관계자들이 관련 proposed ASU에 대해 검토하고 의견을 제시하는 데에 2019년 9월 16까지 시간을 제공했다.

2014년 이후로, FASB는 수익인식기준(ASC 606), 리스(ASC 842), 위험관리회계(ASC 815), 금융상품 - 신용손실(ASC 326) 등 여러가지 주요한 회계기준 업데이트를 발표해왔다. 이와 같은 변화는 상장기업들에게도 큰 변화와 어려움을 야기하지만, 이와 같은 어려움은 작은 기업들 및 비상장 기업에게 더욱 더 큰 부담으로 다가온다. 이와 같은 어려움을 돕기 위하여, FASB는 큰 상장기업을 하나의 양동이(bucket one)로 묶고, 기타 사업체들을 두 번째 양동이(bucket two)로 묶는2개의 양동이 (two bucket)이라는 접근방법을 제시한다.

이와 같은 접근방법에 따라서, 주요한 회계기준 업데이트는 첫 번째 양동이에 해당하는 사업체들에게 먼저 적용된다. 미국 증권거래위원회(“SEC”)에 보고를 하는 회사들이 이에 해당되며, 단 SEC가 지정하는 소규모기업특례적용회사(“SRC”)는 제외된다. 기타 사업체들(앞서 제외된 SRC, 기타 상장기업, 비상장기업, 비영리 단체 등)은 두 번째 양동이로 분류되며, 이에 따라 주요한 회계기준 업데이트에 대한 적용을 첫 번째 양동이의 적용기준부터 2년 후로 미룰 수 있게 된다. 일반적으로, 기존과 마찬가지로 회계기준 업데이트에 대한 조기적용은 모든 사업체들에게 허락될 것으로 보인다.

이미 몇몇 회계기준은 큰 상장기업에게 적용이 되었기 때문에 이러한 회계기준의 적용날짜는 바뀌지 않았지만, 비상장기업 및 기타 사업체들의 경우 새로운 회계기준을 적용하는 데에 필요한 교육 및 준비과정을 하는 데에 조금 더 시간이 주어지게 될 것으로 보인다.

자세한 내용은 아래의 링크에서 확인할 수 있다.

<<https://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1176173176157&acceptedDisclaimer=true>>

On August 15, 2019, the Financial Accounting Standards Board (“FASB”) issued a proposed Accounting Standards Update (“ASU”) that would grant private companies (along with not-for-profit organizations, and certain small public companies) additional time to implement new FASB standards on 1. current expected credit losses, 2. leases, and 3. hedging. Stakeholders are encouraged to review and provide comment on the proposed ASU by September 16, 2019.

Since 2014, FASB has issued several major Accounting Standards Updates, such as ASC 606 - Revenue Recognition, ASC 842 - Leases, ASC 815 - Derivatives and Hedging, ASC 326 - Financial Instruments – Credit Losses, etc. Although large public business entities may also encounter difficulties in transitioning to a new standard, the challenges are magnified for smaller public business entities and nonpublic business entities. In response to those issues and requests to defer certain major updates, FASB developed a philosophy to extend and simplify how effective dates are staggered between larger public companies (bucket one) and all other entities (bucket two).

Under this philosophy, a major update would first be effective for bucket-one entities—entities that are Securities and Exchange Commission (SEC) filers, excluding entities eligible to be smaller reporting companies (SRCs) under the SEC’s definition. All other entities, including entities eligible to be SRCs, all other public business entities, and all nonpublic business entities (private companies, not-for-profit organizations, and employee benefit plans) would compose bucket two. For those entities, it is anticipated that the FASB will consider requiring an effective date staggered at least two years after bucket one for major updates. Generally, it is expected that early application would continue to be permitted for all entities.

Because some of the new standards are already effective for bucket one entities, the Board retained the effective date for those entities, but private and all other entities now have more time to improve their processes and entire business approach related to the new standards as they perform the new implementation.

For more information, please refer to the Proposed Accounting Standards Update:

<<https://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1176173176157&acceptedDisclaimer=true>>

Things to Consider Before Filing Return for Corporate Taxpayers!

As we are approaching the extended due date of 2018 income tax returns, here are some reminders of key considerations that could potentially reduce tax liabilities:

Monetization of AMT Credit

Corporations are no longer subject to the Alternative Minimum Tax (“AMT”) under the new tax law.  However, many corporations have paid in AMT in the past and may have AMT credit carryforwards that is refundable starting in 2018 through 2022. 50% of the corporation’s AMT credit carryforwards are refundable in 2018. If your company was subject to AMT in the past, you should explore this opportunity to monetize AMT credits carryforwards.

Bonus Depreciation

Bonus depreciation percentage has increased from 50% to 100% for qualifying property acquired and placed in service during 2018 through 2022.  Generally, the 100% write-off applies to depreciable business assets with recovery period of 20 years or less that are placed in service in the U.S.A.

FDII Benefit

One of the centerpieces of the President Trump’s tax reform was to create a more tax-efficient environment and to make the U.S tax system competitive with other tax regimes around the word.  As part of this reform, Congress added Internal Revenue Code (IRC) Section 250 “Foreign-Derived Intangible Income” (FDII) deduction which provides an incentive to domestic corporations in the form of a lower tax rate on income derived from foreign market.

Under Section 250, U.S. corporations are entitled to a preferential rate reduction from 21% to 13.15% on income derived from foreign market.  This preferential rate applies to the qualifying income from 2018 through 2025, and then slightly increased to 16.4% thereafter.

Minimization of GILTI Tax

Global Intangible Low-Taxed Income (“GILTI”) is a new category of foreign income that must be added to the US taxpayers’ taxable income each year effective January 1, 2018.  In a nutshell, it is a tax on foreign subsidiaries’ earnings that exceeds 10 percent return on their investment in hard assets (such as fixed assets used for operation).  Under the GILTI tax regime, foreign subsidiaries’ income in excess of their 10% return on hard asset investment is considered as income attributable to the US intangibles, and US tax is imposed on such excess income each year.

There are various strategies and planning ideas to avoid or reduce GILTI tax:  check-the-box election, section 78 gross up with deemed paid foreign tax credit, section 962 election for individual taxpayers, transfer pricing planning, sourcing foreign income to subsidiaries with substantial hard asset, and ownership restructure to disqualify as controlled foreign corporation.

Foreign Dividend Exemption

A full participation exemption is available under the new tax law which exempts certain foreign sourced dividends paid to 10 percent US corporate shareholders for federal income tax purposes.  If your company received a dividend from one of its foreign subsidiaries during the year, the company may be eligible for this exemption.

R&D Tax Credits

The Research and Development (R&D) tax credit, first introduced in 1981, is a government-sponsored tax incentive that rewards companies for conducting R&D activities in the United States.  This credit was implemented to incentivize innovation throughout the economy and to keep technical jobs here in the United States.

The benefit of the R&D tax credit could range from 14% to 20% of qualifying expenditures that could be used to offset the company’s tax liabilities.  In addition, many states have their own means of incentivizing in-state R&D activities.

WOTC

The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment. Employers claim about $1 billion in tax credits each year under the WOTC program and there is no limit on the number of individuals an employer can hire to qualify to claim the tax credit.

The maximum tax credit ranges from $1,200 to $9,600, depending on the employee hired.  The expiration of the WOTC credit has been extended until the end of 2020.

Dodging GILTI Bullet

해외 자회사를 둔 많은 납세자들이 새로 제정된 조항  951A GILTI tax 로 인해  세금부채와 컴플라이언스에 관련된 많은 어려움을 겪고있다. 새로 제정된 GILTI tax 에 익숙하지 않은 납세자들을 위해  이 규정이 해외 자회사를 둔 미국 납세자들에게 끼치는 영향과 고려해 볼 만한 절세 방안을 정리해 보았다.

GILTI 란, 2018년 1월  1일을 기준으로, 매년 미국 납세자들의 과세 소득에 포함되야하는 일종 해외 소득을 뜻한다. 쉽게 설명하자면, 유형 자산(오퍼레이션에 사용되는 고정자산 등)에 투자된 금액의 10%를 초과하는 수입을 벌어들이는 해외 자회사들에게 부과되는 세금이다.  이러한 새로 제정된 법 아래, 유형 자산에 투자된 금액의 10% 를 초과하는 해외 자회사들의 수입은 미국 무형 자산에 귀속되는 수입으로 간주되며, 그 초과된 만큼의 금액에 대한 미국 세금이 부과된다.

많은 다국적 기업들이 이미 GILTI에 관련된 세금을 최소화 시키기 위한 노력을 하고있고 절세방안을 이미 시행했고 시행하고있다. 예시로, 퀄컴(Qualcomm) 의경우,  GILTI와BEAT 세금을 피할 수 있는 구조 조정을 통하여2017년 4분기 기준을 기준으로 대략 $570 M에 상당하는 tax benefit을 보고한 바 있다.

GILTI 세금을 피하거나 줄일수있는 많은 전략과 계획 아이디어가 존재한다. 예를들면, check-the-box election, section 78 gross up with deemed paid foreign tax credit, section 962 election for individual taxpayers, transfer pricing planning, sourcing foreign income to subsidiaries with substantial hard asset, and ownership restructure to disqualify as controlled foreign corporation등이 존재한다.

GILTI에 대한 고충이 있다면 세법 전문가분들과 위와 같은 전략을 구상하며 상담할 것을 추천한다.