Part of the U.S. Expat Tax Series by Tax.Travel

This article is part of Antravia’s U.S. Expat Tax Series - a collection of practical guides for Americans living or working abroad. Whether you’re a long-term expat, digital nomad, or remote entrepreneur, these resources explain how to stay compliant with the IRS while reducing double taxation and managing your finances internationally.

In this article:
U.S. Citizens Living Abroad with a Foreign Company: The Tax Trap nobody explains early enough
Understanding GILTI, Form 5471, and the Key U.S. International Tax Reporting Requirements for Americans with Foreign Companies

U.S. Citizens Living Abroad with a Foreign Company: The Tax Trap nobody explains early enough

Most U.S. citizens who move abroad expect tax to become easier, and not necessarily harder. In the early years, this is usually true. Filing as an employee overseas often feels manageable, even dull. Foreign earned income exclusions. Foreign tax credits. FBARs. FATCA. Possibly annoying, but predictable.

Then something changes. You choose to form a company in a country outside the United States.Just a normal foreign company in the country where you live. For many people, this is a UK limited company, an EU GmbH, a Canadian corporation, an Australian Pty Ltd, a Dubai free-zone entity, or a Singapore Pte Ltd.

This is where the U.S. tax story quietly stops being “expat tax” and becomes international entity tax, whether you realize it or not as owning a foreign company as a U.S. person is an administrative and a tax structural change. It pulls you into a different part of the U.S. tax system entirely, with different rules, different risk levels, and different penalties for getting it wrong.

This article explains what actually changes when you own a foreign company as a U.S. citizen, why so many people unknowingly file incorrectly for years, and what you should be asking any tax advisor before trusting them with your return.

1. The moment you form a foreign company, you are no longer a “standard” U.S. expat

There is a sharp dividing line in U.S. tax treatment:

• Before company ownership: you are taxed as an individual with foreign income.

• After company ownership: you are treated as a controlling owner of a foreign entity.

This is not a minor distinction as the IRS does not see a foreign company as “just your business.” It sees it as a potential deferral vehicle. A place income can be parked and a potential structure that might avoid tax, and whether that was your intention or not is irrelevant.

From the IRS perspective, a foreign company exists for one reason: income can remain offshore and the U.S. tax system is built to prevent that and this is why forming a company triggers reporting that salary earners never see.

It is also why many expat accountants are not equipped to handle it.

2. The first major trap: Form 5471

Form 5471 is one of the deepest reporting frameworks in the U.S. tax system, and it exists to:

• identify who owns foreign companies
• classify those companies under U.S. control rules
• reconstruct financial statements under U.S. tax logic
• track movement of profits year on year
• force income recognition before money is distributed
• monitor intercompany transactions
• block deferral through entity ownership

Therefore, if you own enough of a foreign company to be considered a “controlling person” or “significant owner,” filing is not optional. The form is required annually, and mistakes are penalized aggressively.

The base penalty for not filing is ten thousand dollars per year. That amount can increase rapidly if the IRS has to request the filing later. Unlike income tax penalties, Form 5471 penalties are not linked to tax owed. You can owe nothing in tax and still owe thousands in penalties. Many people only discover this years later and often after an audit letter arrives.

3. The second trap: the U.S. does not treat profit as “yours” only when you withdraw it

Outside the U.S., people think in dividends and within the U.S. international tax system, income does not need to be distributed to be taxable. The U.S. established a regime in 2018 specifically to stop U.S. owners of foreign companies from simply leaving profit offshore. This regime is called GILTI: Global Intangible Low-Taxed Income.

In reality, GILTI applies most often to small service companies, such as Consultants. Advisers. Freelancers. Digital businesses. Travel professionals. Coaches. Agencies.

If you own a foreign company that earns profit and retains it and meaning it is not paid out to you, the U.S. may still tax you on it as though it were personal income. This is the most misunderstood part of U.S. expat tax.

People think that “I didn’t take a dividend.” Or “I reinvested.” Or “The money never left the company.” or “I pay corporation tax here locally.” None of those statements automatically protect you from GILTI and the U.S. may still force income recognition.

4. Why service companies are hit hardest

GILTI does not punish cash. It punishes lack of tangible assets and the tax system gives relief based on physical investment. If your business owns equipment, inventory, plant or property, part of your income may be exempt. If your business is IP-light and service-heavy, you receive far less protection. This is why manufacturing businesses and asset-heavy companies often fare better. And why one-person professional firms often fare worst.

The more “modern” your business looks, the more exposed you are.

5. Why so many people file incorrectly without knowing it

Most expat tax firms are built to process volume, and their systems are structured around:

• salary income
• standard exclusions
• FBAR compliance
• FATCA thresholds
• dual filing mechanics

They are not built for foreign entities, so when a client mentions - “I also own a company,”, the response often sounds like:

“Just send us the dividend statement.”
“Your UK accountant handles that.”
“It probably isn’t reportable yet.”
“We only need your personal return.”

These responses are the warning signs, and we have heard these many times at Antravia. The question is not who files the company accounts locally, but the question is how that company is treated under U.S. tax law.

If your advisor cannot talk fluently about:

• Form 5471 categories
• controlled foreign corporations
• earnings and profits
• Subpart F
• GILTI
• foreign tax credit limitation
• treaty positions
• accumulated earnings

then your return is being prepared as if your company does not exist - That may be cheaper in the short term, unfortunately It is not cheaper in the long term.

6. The compliance cost is not the problem. The wrong filing is.

Many people delay dealing with this properly because they see higher fees coming.

They compare, “My salary return cost $400.” versus “This quote is $3,000.” And what they are actually comparing is basic processing vs Entity-level analysis - and the cost is not in filling in a form, but the cost is reconstructing your financial position correctly.

When an accountant creates Form 5471 properly, they are:

• translating your accounts into U.S. tax language
• testing whether income must be taxed before distribution
• reconstructing earnings and profits
• analysing cross-border tax interaction
• evaluating entity status
• documenting exposure
• building audit defence

This is more like forensic accounting than simple form filling.

7. What you should ask any advisor before trusting them with your return

Before hiring anyone for a U.S. return when a foreign company is involved, ask these questions.

If the answers are vague, generic, or dismissive, do not continue.

• “Do you regularly handle Form 5471?”

• “Do you analyse GILTI exposure?”

• “Do you handle earnings and profits calculations?”

• “Do you review foreign accounts for U.S. classification?”

• “Who handles audit defence if the IRS questions foreign company treatment?”

8. The most common misconceptions

• “My business is small” - Size does not reduce complexity.

• “I do not own overseas property or IP” - Sadly Irrelevant. Control creates reporting.

• “I reinvest everything” - Retained profit is not invisible to the IRS.

• “I paid local tax” - Foreign tax does not cancel U.S. tax automatically.

• “I do not transfer money home” - Distribution is not the trigger, but Ownership is.

9. What typically happens when this is ignored

Errors compound quietly. Year one is wrong and then so is year two, and by year five unfiled forms accumulate, misclassification becomes entrenched, earnings history is broken, IRS exposure multiplies, clean correction becomes costly. Many people only learn this when attempting to, sell the business, or move country or even close the company. Rectifying behind-the-scenes reporting is always harder than doing it properly from the start.

10. This is not about paying more tax. It is about paying the right tax in the right place.

Good international tax planning does not mean paying zero tax, but it does mean, not paying twice, not omitting required reporting, not triggering penalties and not giving the IRS a reason to question integrity

Understanding GILTI, Form 5471, and the Key U.S. International Tax Reporting Requirements for Americans with Foreign Companies

As mentioned above, U.S. international tax law becomes significantly more complex the moment a U.S. citizen owns, controls, or has a substantial interest in a foreign company. Ordinary U.S. expat tax rules, such as the Foreign Earned Income Exclusion (FEIE) or the Foreign Tax Credit, do not cover the corporate side of the tax system. Once a foreign corporation is involved, a different set of IRS rules applies, and those rules require a deep understanding of the company’s accounts, structure, ownership and tax position.

This article xplains the essential concepts that matter most for Americans abroad who operate a foreign company, including:

• what GILTI actually is,

• what Form 5471 requires,

• why the U.S. treats foreign companies differently from most countries,

• and how the “88-series” international forms (e.g., 8832, 8858, 8865, 8992) fit into the system.

The goal is to help readers understand why owning a non-U.S. company changes their tax obligations. As always, contact a professional tax advisor.

1. Why Foreign Companies Trigger Special U.S. Reporting Rules

Most countries tax companies based on where the company is incorporated or doing business. The U.S., however, taxes U.S. persons, including citizens living abroad, on worldwide income. This means U.S. citizens who own foreign companies must report:

• their personal income, AND

• the company’s financial and structural information, even if:

  • the company is small,

  • the owner pays full tax abroad,

  • the company never paid dividends,

  • or no profit was withdrawn.

These rules exist to prevent offshore tax evasion and profit shifting. The result is an extensive compliance framework that U.S. individuals must navigate, even when running small businesses abroad.

2. Form 5471 — The Core Filing Requirement for Foreign Corporations

Form 5471 is the most important and widely applicable international tax filing for Americans who own or control a foreign corporation.

What Form 5471 Is

Form 5471 is an information return used to report certain foreign corporations owned by U.S. persons.
It is not optional when ownership thresholds are met.

Who must File

A U.S. person must file Form 5471 if they:

• own 10% or more of a foreign corporation,

• control more than 50% of it,

• acquire or dispose of enough shares to cross ownership thresholds,

• act as an officer/director in certain circumstances, or

• are treated as controlling through ownership attribution (e.g., spouse or parent shares).

What it Requires

Form 5471 is essentially a miniature corporate tax return plus a disclosure report, including:

• detailed balance sheets and income statements

• Earnings & Profits (E&P) calculations

• shareholder transactions

• intercompany balances

• capital contributions and loans

• retained earnings

• tax reconciliation

• ownership structure

• foreign taxes paid

The purpose is to give the IRS insight into the company’s operations and ensure that U.S. shareholders are not using foreign entities to defer or hide income.

Penalties

Failure to file Form 5471 can trigger penalties starting at:

• $10,000 per form, per year,

• additional $10,000 increments for continued non-filing,

• loss of foreign tax credits,

• and in severe cases, assessments based on reconstruction.

3. The Controlled Foreign Corporation (CFC) Rules

A foreign corporation becomes a CFC when U.S. shareholders collectively own more than 50% of the company. Once a company is classified as a CFC:

• additional reporting applies (5471 Categories 4 & 5),

• Subpart F income may be taxable*,

• GILTI rules apply (see next section),

• the U.S. may tax certain profits even when no dividends are paid.

CFC status is common:

• A U.S. entrepreneur owning 100% of a UK LTD

• A U.S. citizen with a UAE FZCO

• U.S. expats running small companies in Asia or the EU

Most small foreign companies owned by Americans abroad are automatically CFCs without realizing it.

4. GILTI - The U.S. Tax on Certain Profits Held in Foreign Companies

GILTI stands for Global Intangible Low-Taxed Income.
Despite the name, it applies even when a company has no “intangible” income and is not “low-taxed.”

What GILTI actually is

GILTI is a system where the U.S. taxes a U.S. shareholder on certain profits earned and retained inside a foreign corporation, so in simple terms: Even if you don’t take any money out of your foreign company, the U.S. may tax a portion of the company’s annual profit.

Why this Exists

Before 2018, U.S. shareholders could keep profits offshore indefinitely. GILTI was created to prevent permanent deferral.

When GILTI applies

GILTI applies when:

• A U.S. person owns a CFC, AND

• The CFC has tested income, which is essentially business profit after adjustments.

Who files GILTI

Individuals with CFCs must compute GILTI on:

• Form 8992 — calculation

• Form 5471 Schedule I and Schedule J — CFC income and E&P

• sometimes Form 1116 — foreign tax credits

High-Tax Exception

If the foreign company pays tax above a certain threshold, the U.S. may exempt the income. This must be claimed, not assumed, so for UK companies, the high-tax exception may often apply, but for UAE companies, it typically does not.

Effect on Small Businesses

Even very small freelance or consulting companies can trigger GILTI calculations.

5. The “88-Series” Forms: How they fit in

Several U.S. international tax forms sit in the 8800–8999 range and interact with Form 5471 and GILTI. Below is a clear explanation of each.

Form 8832 — Entity Classification Election (“Check-the-Box”)

This form allows a foreign company to elect how it is treated for U.S. tax purposes. A foreign entity can choose to be treated as:

• a corporation,

• a disregarded entity, or

• a partnership (if multiple owners).

This election can dramatically change U.S. tax outcomes.

Form 8858 — Foreign Disregarded Entity Filing

If a foreign company is treated as disregarded for U.S. tax, Form 8858 replaces Form 5471. The IRS requires:

• a full income statement

• a full balance sheet

• transactions with the owner

• foreign taxes paid

• local statutory accounts

This applies, for example, when a U.S. person elects to treat a UK Ltd as disregarded.
A disregarded entity (DRE) is a business that exists as a legal entity in its home country, but is ignored (“disregarded”) for U.S. tax purposes. In practical terms, The IRS pretends the company does not exist separately from the owner, so all its income, expenses, assets and liabilities are treated as if they belong directly to the U.S. person. A disregarded entity has no separate U.S. tax identity. Everything “flows through” to the owner’s personal tax return.

Important: Not every foreign company can choose this treatment. A foreign entity must be eligible under IRS rules and the owner must file Form 8832 to request disregarded status. Many common entity types (e.g., GmbH, SRL, Pte Ltd) are “per se corporations” and cannot be disregarded at all. Disregarded status can reduce GILTI exposure, but it may increase U.S. self-employment tax or create foreign tax credit mismatches. It should only be used after proper modelling.

For example: You own a UK Ltd - You file Form 8832 and choose “Disregarded Entity” - The UK company’s profits go directly on your 1040 - You file Form 8858, not Form 5471. The Ltd still exists under UK law — but the U.S. ignores it.

Form 8865 — Foreign Partnership Reporting

Filed when a U.S. person owns interests in a foreign partnership, such as:

• UK LLP

• EU partnerships

• Joint ventures abroad

This form parallels Form 5471 but for partnerships.

Form 8992 — GILTI Calculation

This is the actual GILTI computation form. It determines:

• tested income,

• tested loss,

• QBAI (qualified business asset investment),

• and the amount of GILTI a U.S. shareholder must include on their return.

It integrates with both Form 5471 and the individual’s Form 1040.

6. Why these Rules matter for Americans Living Abroad

Even if you pay full tax in the UK, EU, or Internationally, and never take money out of your company, operate a small business, or believed the company was “separate,” the U.S. still requires - reporting, disclosure, and sometimes tax recognition.

This does not mean double taxation is automatic.

The U.S. system usually allows foreign tax credits or exemptions, but the compliance burden is real and must be handled correctly.

7. What U.S. Tax Professionals Actually Do in These Cases

For any foreign-company case, a U.S. tax professional must:

1. determine CFC status

2. file Form 5471 or 8858

3. analyse Earnings & Profits

4. perform GILTI calculations

5. apply high-tax exceptions if relevant

6. compute foreign tax credits

7. ensure FATCA/FBAR consistency

8. incorporate entity elections (8832)

9. reconcile local books to U.S. tax basis

This requires both U.S. tax expertise and familiarity with the foreign country’s accounting and tax rules.

8. Why Errors Are Common (and Expensive)

Many U.S. expats use low-cost “expat tax firms” that only understand:

• FEIE

• FBAR

• FATCA

• basic 1040 filing

These firms often miss:

• the need to file Form 5471

• entity attribution rules

• GILTI exposure

• correct E&P computations

• shareholder loan treatment

• foreign tax credit interactions

• entity classification elections

The mistakes may go unnoticed until an IRS notice arrives years later. Penalties can exceed $10,000 per form, per year, even when no U.S. tax is due.

9. When to seek Professional Help

You should work with a qualified international tax professional if:

• you own part of a foreign company

• you incorporated a business abroad

• you operate through a UK Ltd, GmbH, FZCO, Pte Ltd, or similar

• another accountant has never asked about 5471

• your accountant says “we don’t need to do that”

• your foreign company has profits or retained earnings

• you plan to take dividends or restructure

• you want to reduce or avoid GILTI exposure

This is an area of U.S. tax law that requires specialist knowledge.

10. Final Antravia Thoughts

The U.S. international tax system is complicated, and its rules often feel disproportionate for small business owners abroad. But the logic is consistent: the IRS wants visibility into foreign companies owned by U.S. persons and may tax certain forms of offshore income even if the money is never withdrawn. Understanding the purpose and structure of:

• Form 5471,

• GILTI,

• CFC rules,

• Form 8832,

• Form 8858,

• Form 8865, and

• Form 8992,

helps U.S. expats appreciate why proper reporting matters and why foreign entities cannot be ignored in tax planning. With the right guidance, most expats can navigate these rules effectively and avoid penalties, double taxation, or unexpected tax bills. If you are a U.S. citizen living abroad and you now own a foreign company, you are no longer in simple territory.

As stated in the previous section, the tax rules that apply to you are not the same as those that apply to employees, remote workers, freelancers operating domestically or investors holding U.S. entities - You are inside international entity taxation now, whether you intended to be or not. Being compliant here does not start with forms - but it starts with understanding what you actually built.

Professional caveat

This article is for general information only and does not constitute tax, legal, or accounting advice. U.S. international tax is highly technical and fact-specific. Anyone who is a U.S. citizen living abroad and owns a foreign company should consult a qualified U.S. tax professional experienced in international entity taxation before filing.

**U.S. Expat Tax Glossary

U.S. tax rules for Americans living overseas include concepts that do not exist in most other countries. This glossary explains the core terms that expats encounter, especially when they own a foreign company, hold assets overseas, or move between multiple jurisdictions. Each definition is written in plain English and reflects current IRS guidance.

Form 5471

An information return required when a U.S. person owns or controls a foreign corporation. It reports financial statements, ownership, transactions, and international tax calculations. Missing this form can trigger penalties starting at $10,000 per year.

Category 1–5 Filer

The IRS defines five categories of Form 5471 filers. They depend on ownership percentage, control, acquisition or disposition of shares, and whether the foreign company qualifies as a Controlled Foreign Corporation. Most Americans who own 100 percent of a foreign company fall under Category 4 and Category 5.

Controlled Foreign Corporation (CFC)

A foreign corporation where U.S. shareholders collectively own more than 50 percent of the vote or value. CFC status determines whether Subpart F income or GILTI rules apply.

Constructive Ownership

U.S. tax rules that attribute ownership to individuals even if they do not hold the shares directly. Ownership can flow through entities or other U.S. persons. Importantly, ownership does not flow through non-resident alien spouses.

Subpart F Income

Certain types of passive or easily movable income earned by a CFC. Subpart F income is taxed immediately to U.S. shareholders, even if not distributed.

GILTI (Global Intangible Low-Taxed Income)

A tax regime that applies to U.S. shareholders of CFCs. It captures income above a “normal” return on tangible assets. GILTI is calculated on Form 8992 and applies even when no dividends are paid.

QBAI (Qualified Business Asset Investment)

The average quarterly value of a CFC’s tangible business assets. QBAI reduces GILTI by allowing a 10 percent “normal return.” Service businesses with minimal fixed assets often have low QBAI, increasing potential GILTI exposure.

Earnings and Profits (E&P)

A U.S. tax measure of a corporation’s ability to pay dividends. Foreign companies must convert local profits into U.S. E&P for Form 5471, which often requires adjustments to depreciation, taxes, and accounting methods.

Schedule F (Form 5471)

The income statement of the foreign corporation, presented in U.S. tax format. It converts local GAAP profits into U.S. taxable categories.

Schedule H (Form 5471)

Shows the corporation’s Earnings and Profits, including adjustments for foreign taxes, depreciation differences, and non-deductible expenses.

Schedule I (Form 5471)

Reports Subpart F income, GILTI inclusions, tested income calculations, and other international tax elements.

Schedule J (Form 5471)

Tracks accumulated E&P, distributions, and previously taxed income accounts.

Schedule M (Form 5471)

Reports transactions between the foreign corporation and related parties, including loans, royalties, and service fees.

Form 8832 (Entity Classification Election)

Used to classify a foreign company as a corporation, partnership, or disregarded entity. Without this form, many foreign companies default to “corporation” status for U.S. tax.

Disregarded Entity (Form 8858)

A foreign entity that is ignored for U.S. tax purposes. All income flows directly to the U.S. owner. Requires Form 8832 to elect disregarded status unless it is naturally disregarded.

Form 8865

The foreign-partnership equivalent of Form 5471. Required when a U.S. person owns or controls a foreign partnership.

Form 8992 (GILTI Calculation Form)

Calculates GILTI, including tested income, tested loss, and QBAI. Filed with Form 5471 when Category 5 filing is triggered.

Per Se Corporation

A foreign entity type that is automatically treated as a corporation for U.S. tax purposes and cannot be elected as disregarded. Many EU entity types fall in this category.

PFIC (Passive Foreign Investment Company)

A foreign company where passive income or passive assets exceed certain thresholds. U.S. shareholders must file Form 8621 and may face punitive tax treatment on distributions and gains.

FBAR (FinCEN Form 114)

Required when a U.S. person has foreign financial accounts exceeding USD 10,000 at any point in the year. Filed separately with FinCEN, not with the IRS.

FATCA (Form 8938)

Reports foreign financial assets above certain thresholds on the U.S. tax return. Different from FBAR and often needed alongside it.

Foreign Earned Income Exclusion (FEIE)

Allows eligible Americans abroad to exclude up to a specified amount of earned income (USD 130,000 in 2025). Requires Form 2555 and meeting either the Physical Presence or Bona Fide Residence test.

Foreign Housing Exclusion

Allows additional exclusion of certain foreign housing costs, depending on city-specific limits and eligibility.

Foreign Tax Credit (Form 1116)

Provides a credit for foreign taxes paid to avoid double taxation. Works differently for dividends, interest, business income, and passive income.

Totalization Agreement

A treaty that prevents double social-security taxation. Determines which country’s social-security system an expat contributes to.

State Residency Rules

Many U.S. states tax based on domicile rather than presence. Understanding how to break residency is crucial for expats leaving states like California or New York.

Substantially Complete Filing

The IRS standard for whether an information return like Form 5471 meets the minimum requirements to avoid penalties. Missing schedules or incorrect totals can cause a filing to be considered incomplete.

Reasonable Cause Statement

A written explanation submitted to the IRS when a taxpayer misses a required international form. Necessary when requesting penalty abatement for late Form 5471, 8858, 8865, or 8938 filings.

Streamlined Filing Procedures

An IRS program that allows expats who unintentionally failed to file U.S. returns to catch up without penalties. Requires three years of back tax returns and six years of FBAR filings.

Form 926 — Reporting Transfers to a Foreign Corporation

Required when a U.S. person transfers cash, assets, intellectual property, or other property to a foreign corporation, including when forming or capitalizing a foreign company. Missing Form 926 can trigger penalties starting at $10,000. It applies even if the foreign company is newly incorporated and not yet trading.

Form 965 — Transition Tax on Deferred Foreign Earnings

Part of the Tax Cuts and Jobs Act reforms. It imposed a one-time tax on certain accumulated foreign profits of U.S. shareholders. This is a historic provision but may still apply when filing late returns for years affected by the transition rules.

Form 3520 / Form 3520-A — Foreign Trusts and Large Gifts from Foreign Persons

Form 3520 reports transactions with foreign trusts and large gifts or inheritances from non-U.S. persons exceeding $100,000. Form 3520-A reports the annual information return of a foreign trust with a U.S. owner. Neither form generates tax by itself, but penalties for failure to file are significant.

Form 8300 — Reporting Cash Payments Over $10,000

Used to report cash payments exceeding $10,000 received in the course of a business. Relevant for expats operating cash-heavy foreign businesses, including tourism, hospitality, rentals, or retail operations.

Form 1042 and Form 1042-S — Withholding on U.S.-Source Payments to Foreign Persons

Form 1042 reports tax withheld by a withholding agent on payments of U.S.-source income to foreign persons. Form 1042-S provides details of the amounts paid and the tax withheld. A foreign company may be treated as a withholding agent if it receives U.S.-source income that requires withholding or makes payments to foreign individuals.

Form 1118 — Foreign Tax Credit for Corporations

The corporate version of Form 1116. Used when a foreign corporation directly claims foreign tax credits. This applies primarily when the foreign company files a U.S. corporate return or is part of a consolidated U.S. group.

Form 965-A — Basis Adjustment for Transition Tax

An additional form used when calculating basis adjustments under the transition tax rules linked to Form 965. This is relevant only in specific historic tax years but is essential when correcting or amending late filings that involve the transition tax period.

Looking for more expat tax guidance? Visit tax.travel/us-expats for detailed resources on filing from abroad, FBAR and FATCA rules, and other essentials for U.S. citizens overseas.

Need help with your U.S. taxes abroad?

Antravia supports American expats, freelancers, and digital nomads with expert tax and accounting guidance. We help you file accurately, claim the right exclusions, and stay compliant wherever you live.

Talk to Antravia →

References

U.S. Internal Revenue Service (IRS)

1. Internal Revenue Service. Instructions for Form 5471 (Information Return of U.S. Persons With Respect to Certain Foreign Corporations).
   https://www.irs.gov/instructions/i5471

2. Internal Revenue Service. Form 5471 – Information Return of U.S. Persons With Respect to Certain Foreign Corporations.
   https://www.irs.gov/forms-pubs/about-form-5471

3. Internal Revenue Service. Controlled Foreign Corporations (CFCs).
   https://www.irs.gov/businesses/international-businesses/controlled-foreign-corporations

4. Internal Revenue Service. Global Intangible Low-Taxed Income (GILTI).
   https://www.irs.gov/businesses/international-businesses/global-intangible-low-taxed-income

5. Internal Revenue Service. Subpart F Income.
   https://www.irs.gov/businesses/international-businesses/subpart-f-income

6. Internal Revenue Service. Foreign Tax Credit (Individual).
   https://www.irs.gov/forms-pubs/about-form-1116

7. Internal Revenue Service. Foreign Tax Credit (Corporations).
   https://www.irs.gov/forms-pubs/about-form-1118

8. U.S. Department of the Treasury. Final Regulations Under IRC Sections 951A (GILTI) and 958 (CFC Rules).
   https://www.federalregister.gov/d/2020-02874

OECD / Treaty Framework

9. Organisation for Economic Co-operation and Development (OECD). Model Tax Convention on Income and on Capital.
   https://www.oecd.org/tax/treaties/model-tax-convention-on-income-and-on-capital.htm

10. U.S. Department of Treasury. United States–United Kingdom Income Tax Treaty.
    https://home.treasury.gov/policy-issues/tax-policy/treaties

Big Four & Leading Professional Firms

11. Deloitte. GILTI Explained – What U.S. Multinationals Need to Know.
    https://www2.deloitte.com/us/en/pages/tax/articles/global-intangible-low-taxed-income.html

12. PwC. Technical Guide to GILTI and the U.S. International Tax System.
    https://www.pwc.com/us/en/services/tax/library/global-intangible-low-taxed-income.html

13. KPMG. Form 5471 and Controlled Foreign Corporations Overview.
    https://home.kpmg/us/en/home/insights/2019/01/form-5471.html

14. EY. U.S. International Tax Reform: GILTI and Foreign Corporation Rules.
    https://www.ey.com/en_us/tax/the-impact-of-us-tax-reform-on-us-inbound-and-outbound-investment

Additional Authoritative Commentary

15. American Bar Association Section of Taxation. GILTI and Subpart F Analysis and Developments.
    https://www.americanbar.org/groups/taxation/

16. Taxation of International Business Transactions, Bloomberg Tax Portfolio:
    Bloomberg Law – Controlled Foreign Corporation Rules and GILTI Regime
    https://www.bloombergtax.com

References - Understanding GILTI, Form 5471, and the Key U.S. International Tax Reporting Requirements for Americans with Foreign Companies

1. Internal Revenue Service. Instructions for Form 5471.
   https://www.irs.gov/instructions/i5471

2. Internal Revenue Service. Controlled Foreign Corporations (CFCs).
   https://www.irs.gov/businesses/international-businesses/controlled-foreign-corporations

3. Internal Revenue Service. Global Intangible Low-Taxed Income (GILTI).
   https://www.irs.gov/businesses/international-businesses/global-intangible-low-taxed-income

4. Internal Revenue Service. Form 8992 – GILTI.
   https://www.irs.gov/forms-pubs/about-form-8992

5. Internal Revenue Service. Form 8832 – Entity Classification Election.
   https://www.irs.gov/forms-pubs/about-form-8832

6. Internal Revenue Service. Form 8858 – Foreign Disregarded Entities.
   https://www.irs.gov/forms-pubs/about-form-8858

7. Internal Revenue Service. Form 8865 – Return of U.S. Persons With Respect to Certain Foreign Partnerships.
   https://www.irs.gov/forms-pubs/about-form-8865

8. U.S. Department of the Treasury. Final Regulations Under IRC 951A (GILTI).
   https://www.federalregister.gov/d/2020-02874

9. OECD. Model Tax Convention on Income and on Capital.
   https://www.oecd.org/tax/treaties/model-tax-convention-on-income-and-on-capital.htm

10. Deloitte. Understanding GILTI and U.S. International Tax Reform.
    https://www2.deloitte.com

Want more info?

✅ 1. IRS Official Sources (Primary Law & Instructions) – Start Here

🔹 IRS Form 5471 – Official Page

Clear definitions of filing categories and thresholds.
https://www.irs.gov/forms-pubs/about-form-5471

🔹 IRS Instructions for Form 5471

The single most important document.
Run by the IRS annually.
https://www.irs.gov/instructions/i5471

What you’ll find inside:

• who must file (Categories 1–5)

• definition of a CFC

• constructive ownership rules

• required schedules

• penalty rules

• E&P guidance

• reporting thresholds

• examples

✅ 2. U.S. Treasury Regulations (Technical Legal Rules)

If you want the actual law, not simplified summaries:

🔹 Regulations under IRC §6038 and §6046

Filing requirements for foreign corporations.
https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFRb6b3fc190cb77d/section-1.6038-2

🔹 CFC Regulations under Subpart F

https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subpart-F

These are technical but authoritative.

✅ 3. U.S. Tax Treatises and Professional Analysis (Used by CPAs)

🔹 Bloomberg Tax Portfolio: Controlled Foreign Corporations

The gold standard reference for international CPAs.
https://www.bloomberglaw.com

🔹 Thomson Reuters Checkpoint: CFC / 5471 Topics

Industry-level technical commentary.
https://tax.thomsonreuters.com/checkpoint/

(Requires subscription, but this is where all serious practitioners go.)

✅ 4. Big Four Technical Insights (Excellent for understanding application)

🔹 Deloitte – Form 5471 Overview

https://www2.deloitte.com/us/en/pages/tax/articles/form-5471.html

🔹 KPMG – CFC and International Tax Guidance

https://home.kpmg/us/en/home/insights.html (search “5471”)

🔹 PwC – U.S. International Tax Reform (includes 5471 implications)

https://www.pwc.com/us/en/services/tax.html

These are written for professionals but still understandable.

✅ 5. IRS Practice Units (Internal IRS Training — Very Useful)

The IRS publishes training modules for its own staff.
They are incredibly insightful.

🔹 IRS Practice Unit: Form 5471 Filing Requirements

https://www.irs.gov/businesses/corporations/practice-units

(Search for “5471” — modules include constructive ownership, Subpart F, E&P, GILTI.)

These are free and provide the reasoning behind enforcement.

✅ 6. Academic & Legal Commentary

🔹 American Bar Association (ABA) Tax Section

High-quality commentary and case law updates.
https://www.americanbar.org/groups/taxation/

🔹 Tax Notes International

Deep dives into CFC/GILTI/5471 topics.
https://www.taxnotes.com

Disclaimer:
Content published by Antravia is provided for informational purposes only and reflects research, industry analysis, and our professional perspective. It does not constitute legal, tax, or accounting advice. Regulations vary by jurisdiction, and individual circumstances differ. Readers should seek advice from a qualified professional before making decisions that could affect their business.
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