global Tax Year End Tax Planning: Changes Coming for International Tax December 02, 2021 Are you up to speed on what could change on the international tax front? We have some advice on how you can best prepare for 2022 here. The Build Back Better Act, or BBBA draft calls for significant changes to the international tax provisions of the tax code. What can you do to prepare? We share some planning tips here. 8 international tax planning tips Optimize foreign earned and/or investment income to utilize foreign tax credits that will expire in the current year. If you lower your foreign income taxes via deductions that do not offset your US income taxes, you may have to pay the delta with your US income tax return. Plan for any "rollovers" of non-qualified plans taking into consideration your cost basis and taxable amounts. If you are planning to sell real estate outside of the US, you will need to consider the potential foreign exchange rate gain and gain on paying off the foreign mortgage. If you qualify it may be beneficial to open by year end an Individual Retirement Account (IRA) and/or solo 401(k) and make the necessary contributions. If you are an employee of a controlled foreign corporation (CFC) you should consider paying yourself a bonus to manage the profit and mitigate the potential taxes.If you have ownership in a controlled foreign corporation (CFC) under the proposed Build Back Better Act: GILTI will potentially be assessed on a country-by-country basis as opposed to in the aggregate andSection 250 deduction as it applies to GILTI could drop from 50% to 28.5%. Ensure all foreign taxes, not collected via payroll, are paid by the end of December to boost your foreign tax credits. Questions? Contact us.