In last week’s TWIST, we reported that Mississippi had issued guidance on the state’s adoption, or lack of adoption, of many federal provisions included in the Tax Cuts and Jobs Act. On January 28, 2019, the Department issued revised Notice 80-19-001. With respect to GILTI, the guidance originally stated that “Mississippi will not follow the IRC section 951A global intangible low taxed income (GILTI) provision that requires U.S. shareholders owning at least 10 percent in one or more controlled foreign corporation(s) to include GILTI in its current taxable income.” The notice further observed that “Mississippi does not tax foreign income or subpart F income.”
The revised guidance notes that IRC section 951A requires GILTI to be included in a U.S. shareholder's current taxable income, but does not contain language that Mississippi will not follow the GILTI provision. Rather, the revised notice simply states that “Mississippi considers foreign sourced income to be non-business income.” Please stay tuned to TWIST for more updates on the state implications of federal tax reform.
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