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Foreign entity returns

Look Through Transactions

The Look Through Transactions screens are used to enter any rent, royalty, interest, or dividend payments and receipts a foreign entity has made or received from a related party.
Rents, royalties, and interest payments are processed without regard to the ownership chain or position within that chain (that is, payments can be made up, down or across the ownership chain). Dividends can only be processed up the ownership chain (that is, payments can only be made to an entity's parents.)
Foreign Entities that make or receive look-through payments should use the special account types related to Intercompany Payments and Receipts. If you don’t use these account types, the system won’t perform look-through calculations.

Division or divisional consolidation best practices

To report amounts for the different countries in the divisions, or to have the separate amounts for GILTI and Subpart F by division for a potential future spin-off of a division, in binder
Properties
 tab
International
:
  • In the divisional consolidation, under
    Divisional Consolidation Data
    , select
    Division
     for both
    Sourcing, Apportionment and Tax Level
     and
    Intercompany Transaction Level
    .
In the 1st division, leave the checkboxes unmarked for both
GILTI Tested Unit
 and
Subpart F and Residual Unit
 (amounts will be combined with the divisional consolidation and elimination for the 5471 amounts). In the other divisions, mark the checkboxes for both
GILTI Tested Unit
 and
Subpart F and Residual Unit
. In the top consolidation in
FTC Defaults
 under
Look Through De Minimis Calculation
, select
by Division
.
If all divisions are in the same country and GILTI and Subpart F amounts won’t be separated for a potential spin-off, in binder
Properties
 tab
International
:
  • In the divisional consolidation, under
    Divisional Consolidation Data
    , select
    Divisional Consolidation
     for both
    Sourcing, Apportionment and Tax Level
     and
    Intercompany Transaction Level
    .
  • In all divisions, leave the checkboxes unmarked for both
    GILTI Tested Unit
     and
    Subpart F and Residual Unit
     (amounts will be combined with the divisional consolidation, elimination, and other divisions for the 5471 amounts).
  • In the top consolidation in
    FTC Defaults
     under
    Look Through De Minimis Calculation
    , select
    by Divisional Consolidation
    .
.

This article applies to:

  • Product: ONESOURCE Income Tax
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