On 28 November 2017 the Senate Budget Committee approved the Senate version of the 'Tax Cuts and Jobs Act' by a 12 to 11 vote. This sets up full Senate review of the approved bill, and the Senate could vote on the bill later this week.
The Senate Finance bill’s international tax provisions are generally similar to the House bill regarding the transition to a new territorial tax regime, the imposition of a ‘toll tax,’ the elimination of the indirect foreign tax credit, the modification of the current subpart F anti-deferral provisions and rules regarding sourcing income from export sales of inventory, and the repeal of provisions related to investments in US property under Section 956.
The Senate Finance bill, however, significantly differs from the House bill due to the introduction of a new tax on ‘global intangible low-taxed income’ and a minimum ‘base erosion and anti-abuse tax’ imposed on certain payments by a US corporation to a foreign related entity.
With a few key exceptions, the Senate Finance bill’s provisions would generally impact both US and foreign corporations in tax years ending after 2017.