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Caution: DRAFT—NOT FOR FILING

Caution: DRAFT NOT FOR FILING . This is an early release draft of an IRS tax form, instructions, or publication, which the IRS is providing for your information as a courtesy. Do not file draft forms. Also, do not rely on draft forms, instructions, and publications for FILING . We generally do not release drafts of forms until we believe we have incorporated all changes. However, unexpected issues sometimes arise, or legislation is passed, necessitating a change to a draft form. In addition, forms generally are subject to OMB approval before they can be officially released. Drafts of instructions and publications usually have at least some changes before being officially released.

Caution: DRAFT—NOT FOR FILING This is an early release draft of an IRS tax form, instructions, or publication, which the IRS is providing for your information as a courtesy.

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Transcription of Caution: DRAFT—NOT FOR FILING

1 Caution: DRAFT NOT FOR FILING . This is an early release draft of an IRS tax form, instructions, or publication, which the IRS is providing for your information as a courtesy. Do not file draft forms. Also, do not rely on draft forms, instructions, and publications for FILING . We generally do not release drafts of forms until we believe we have incorporated all changes. However, unexpected issues sometimes arise, or legislation is passed, necessitating a change to a draft form. In addition, forms generally are subject to OMB approval before they can be officially released. Drafts of instructions and publications usually have at least some changes before being officially released.

2 Early release drafts are at , and may remain there even after the final release is posted at All information about all forms, instructions, and pubs is at Almost every form and publication also has its own page on For example, the Form 1040 page is at ; the Publication 17. page is at ; the Form W-4 page is at ; and the Schedule A (Form 1040) page is at If typing in a link above instead of clicking on it, be sure to type the link into the address bar of your browser, not in a Search box. Note that these are friendly shortcut links that will automatically go to the actual link for the page.

3 If you wish, you can submit comments about draft or final forms, instructions, or publications at We cannot respond to all comments due to the high volume we receive. Please note that we may not be able to consider many suggestions until the subsequent revision of the product. Instructions for Form 8993. Department of the Treasury Internal Revenue Service (Rev. December 2018). Section 250 Deduction for Foreign-Derived Intangible Income (FDII) and Global Intangible Low-Taxed Income (GILTI). DRAFT AS OF. Section references are to the Internal Revenue Code unless otherwise noted.

4 Definitions and Overview Section 250 Deduction Limitation Steps for Computing the Future Developments Deduction under Section 250 If the sum of FDII and GILTI exceeds taxable income, the deduction under For the latest information about 1. Deduction Eligible Income (DEI) is section 250 is subject to limitation. developments related to Form 8993 and determined. October 19, 2018. its instructions, such as legislation 2. Deemed Tangible Income Return See the instructions for Part IV, lines 6. enacted after they were published, go to (DTIR) is determined. and 7, below for additional information.

5 3. Deemed Intangible Income (DII) is Corrections to Form 8993. Additional guidance may be issued determined. If you file a Form 8993 that you later subsequent to this publication. Please 4. Foreign-Derived Deduction Eligible determine is incomplete or incorrect, file a review any additional information on the Income (FDDEI) is determined. corrected Form 8993 with an amended tax website mentioned above prior to return, using the amended return completing Form 8993. 5. Foreign-Derived Ratio (FDR) is determined. instructions for the return with which you originally filed Form 8993.

6 Write Important Reminders 6. Foreign-Derived Intangible Income (FDII) is determined. Corrected at the top of the corrected Form 8993. Domestic corporation's deduction. For 7. The FDII reduction and the GILTI. taxable years 2018 2025, certain reduction are determined. Computer-Generated Form domestic corporations are allowed a 8993. deduction equal to of FDII and 50% 8. The eligible deduction under of GILTI. section 250 is determined. Generally, all computer-generated forms must receive prior approval from the IRS. Deduction limitation. The deduction Foreign-Derived Deduction and are subject to an annual review.

7 Under section 250 is subject to further Eligible Income (FDDEI) Requests for approval may be submitted limitation if the sum of FDII and GILTI electronically to Foreign-Derived Deduction Eligible exceeds taxable income. or requests may be mailed to: Internal Income (FDDEI) means, with respect to a taxpayer for its taxable year, any Revenue Service, Attention: Substitute General Instructions deduction eligible income of the taxpayer Forms Program, SE:W:CAR:MP:P:TP, 5000 Ellin Road, C6-440, Lanham, MD. that is derived in connection with: 20706. Purpose of Form 1. Property that is sold by the The Tax Cuts and Jobs Act of 2017 taxpayer to any person who is not a United enacted section 250 ( 115-97) for the States person and that the taxpayer Specific Instructions allowance of a deduction for the eligible establishes to the satisfaction of the percentage of Foreign-Derived Intangible Secretary is for a foreign use, or Part I.

8 Determining Income (FDII) and Global Intangible Low-Taxed Income (GILTI). 2. Services provided by the taxpayer that the taxpayer establishes to the Deduction Eligible Income satisfaction of the Secretary are provided (DEI). Please see Form 8992 and its Deduction Eligible Income (DEI) means, to any person, or with respect to property, instructions for more information on GILTI. with respect to any domestic corporation, not located within the United States. Use Form 8993 to figure the amount of the excess (if any) of the gross income of Special rules for determining foreign the corporation, less exclusions, over the eligible deduction for FDII and GILTI.

9 Use apply to transactions that involve deductions (including taxes) properly under section 250. property or services provided to domestic allocable to such gross income. intermediaries or related parties. Who Must File Line 1. Gross Income All domestic corporations must use Form Sale For purposes of this form, the following 8993 to determine the allowable deduction The terms sold, sells, and sale items of income are excluded from gross under section 250. include any lease, license, exchange, or income. other disposition of property. The deduction is allowed only to Line 2. Exclusions domestic corporations (not including real Foreign Use estate investment trusts (REITs), The following items of income are Foreign use is defined to mean any use, excluded from gross income.)

10 Regulated investment companies (RICs)) consumption, or disposition which is not and S corporations. within the United States. For the latest 1. Any amount included in the gross guidance about foreign use, go to income of such corporation under section When and Where To File 951(a)(1). Attach Form 8993 to your income tax 2. Any amount included in the gross return and file both by the due date income of such corporation under section (including extensions) for that return. 951A. Oct 18, 2018 Cat. No. 33706N. 3. Any financial services income (as Part III. Determining Line 5. Excess Foreign-Derived defined under section 904(d)(2)(D)) of such corporation.


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