Effects of Tax Reform on Taxation Related To Foreign Subsidiary Income
May 31, 2018 | BY Samuel Goldschmidt
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Prior to the Tax Cuts and Jobs Act (TCJA), income earned by U.S. shareholders of a foreign corporation has generally not been subject to U.S. tax until the income is distributed as a dividend to U.S. shareholders.
The TCJA however, has introduced two significant changes to the taxation of income earned by a foreign corporation owned by U.S. shareholders.
tax - income tax - tax reform - foreign income