A company can’t prevent deferred compensation that it granted before a key foreign-income tax break took effect from lowering the benefit it derives from that break, the IRS said Friday.
The ruling addresses the scope of benefits from foreign-derived intangible income, or FDII, a tax break enacted as part of the 2017 tax law that offers companies a lower tax rate on foreign income they get from intangible property held in the U.S.
An unidentified company had claimed to the IRS that restricted stock units that it granted as part of its employee compensation before FDII was enacted, but which …