Intercompany Receipts

(0) Non-Subpart F Income Subject to Look-Through
: The payment appears in the recipient’s E&P exactly as it was sourced in the payor’s E&P. This selection can be used to indicate Same Country Exception.
(1) Subpart F Income
: The payment appears in the recipient’s E&P as Subpart F income. During calculation, the system automatically moves the intercompany income to a Subpart F source code in the recipient’s E&P if it is not already sourced to a Subpart F source code.

Entering Intercompany Receipts

On the TAS navigation tree, select the
Foreign Entity
folder.
Select
Look-Thru Transactions > Intercompany Receipts
.
On the
Dividends
screen, select the
Payor
of the dividend.
Enter the date the dividend was paid.
Enter the
Recipient Amount
in functional currency of the dividend.
Select an
FPHCI Indicator
from the dropdown.
Enter the
Related Withholding
in functional currency of the dividend.
Enter the
Related Other Expenses
in functional currency of the dividend.
Select
Save
.

Entering Intercompany Interest, Rent, or Royalty Receipts

On the TAS navigation tree, select the
Foreign Entity
folder.
Select
Look-Thru Transactions > Intercompany Receipts
.
Select
Interest, Rent
,
Royalties
.
Under the transaction type, select the
Payor
on the next available blank line.
Select an
FPHCI Indicator
from the dropdown.
Enter the
Recipient Amount
in functional currency of the dividend.
Enter the
Related Withholding
in functional currency of the dividend.
Enter the
Related Other Expenses
in functional currency of the dividend.
Select
Save
.

Look Through Transaction Tips

The sum of the trial balance amounts in the Sourcing Workpaper for the accounts with the income account type (multiplied by -1 to make the total positive if necessary) associated with the current tab less the sum of the values in the Recipient Amount column of this tab.
The
Dividends
tab of the Intercompany Payments screen does not have a
Remaining Amount to be Allocated
since there is no amount on the Sourcing Workpaper to reconcile.
Include Intercompany Rents, Royalties and Interest Receipts in the same import file.
If more than one dividend transaction occurs between the same payor and recipient pair on the same date, the payments and receipts should be grouped together and entered as one transaction.
Dividends paid to an entity which is not a direct owner of the paying entity will not appear as part of gross income for the Recipient in the Subpart F reports. These same payments may not appear correctly in the payor's Subpart F reports. To resolve this, set the Recipient as an owner of the Payor with an ownership percentage of zero.
Using the information in the table below, the Look Through computes verify that the total of the amounts on the intercompany screens match associated amounts in the Sourcing Workpaper. If the amounts do not match, the system generates a Look Through error or warning and the compute cannot be completed until it has been resolved.

In the
Withholding Tax
field of the Intercompany Receipts screens, enter the withholding taxes paid by the recipient which specifically relate to the transaction. Withholding taxes should be expressed in the recipient's functional currency and will be reapportioned according to the reallocation of the look-through income.
The
Related Other Expenses
field contains other expenses paid by the recipient which are related to this transaction. Enter amounts in the recipient's functional currency. They will be reapportioned according to the reallocation of the Look Through income. The system verifies that the amount entered does not exceed the amount for the type of look-through income in the recipient's trial balance.