Select all that Apply

Homework: M5: Chapter 31 Homework Save Score: 0 of 1 pt 9 of 9 (0 complete) HW Score: 0%, 0 of 9 pt B31-10 (book/static) Question Help How do GILTI and FDII reduce the incentive for U.S. firms to shift overseas the profits due to intangible assets used to produce foreign goods? Global intangible low tax income (GILTI): (Select all answers that apply.) A. The effect of the GILTI tax is to ensure that excess profits earned abroad are subject to a minimum 10.5% tax rate, while still providing some incentive for firms to minimize their foreign taxes. B. A new income category, which is equal to the firm's foreign earnings in excess of a "normal" return on the firm's tangible depreciable foreign assets (equipment, buildings, factories). C. The assumption behind GILTI is that profits in excess of a 10% return represent a return on intangibles or other intellectual property owned by the foreign subsidiary, not the parent corporation. D. The effect of the GILTI tax is to ensure that excess profits earned abroad are subject to a minimum 21% corporate tax rate, while still providing some ncentive for firms to minimize their foreign taxes. DE. The assumption behind GILTI is that profits in excess of a 10% return represent a return on intangibles or other intellectual property owned by the parent corporation, not the foreign subsidiary. OF. An outdated income category, which is equal to the firm's foreign earnings in excess of a "normal" return on the firm's tangible depreciable foreign assets (equipment, buildings, factories). OG. The effect of the GILTI tax is to ensure that excess profits earned abroad are subject to a maximum 10.5% tax rate, while still providing some incentive for firms to minimize their foreign taxes