Episode 05-2023 | On May 2, 2023, the government released proposed regulations that would terminate the application of section 367(d) arising from an outbound transfer of intangible property when such IP is subsequently repatriated to certain U.S. persons. The proposed regulations provide relief that has been long sought by taxpayers looking to repatriate previously offshored IP as a result of shifting global business and tax environments. While taxpayers may currently obtain relief by filing for a PLR—a potentially expensive and time-consuming process—the proposed regulations would not only expand the situations in which relief could be granted, but would also automatically grant such relief, provided certain requirements are met.
In this episode of KPMG Inside International Tax, we explore key aspects of the proposed regulations. What relief would they provide? Can taxpayers rely on the regulations? What are the unanticipated issues that would arise under the proposed rules? And what longstanding issues under section 367(d) are not addressed here?
Join us as our podcast co-hosts Gary Scanlon and Kristen Gamboa are joined by David de Ruig and Stephen Massed from the International Tax group of the KPMG Washington National Tax practice to explore these issues and more.