Home | Services | Foreign Earnings & Profits (E&P)

Foreign Earnings & Profits (E&P)

Maintaining accurate foreign earnings and profits (“E&P”) and related tax pools is essential in determining a foreign subsidiary’s effective tax rate and prepare accurate tax returns and financial statements. Both the Internal Revenue Service and Securities Exchange Commission have increased their attention in this area in recent years. A number of foreign tax computations are dependent on E&P including:

• Foreign tax credit utilization;
• Deemed paid foreign tax credits;
• Subpart F inclusions; and
• Effective tax rate for financial statement purposes.

USTA’s professionals have the experience, knowledge of processes and the software tools to assist clients with:

• Determining and maintaining accurate E&P and tax pools;
• Working with foreign affiliates to gather information;
• Analyzing E&P accounting methods and related tax elections; and
• Modeling alternative E&P repatriation scenarios