International Tax Calculator

Calculate the US tax impact of foreign operations for reporting, compliance, and planning.

Overview

The Orbitax International Tax Calculator (ITC) is a comprehensive US outbound software solution for the intricate TCJA rules, including GILTI, FDII, and BEAT, as well as for Subpart F and the US Foreign Tax Credit. ITC’s friendly workflow and detailed calculator give quick results that approach compliance-level reporting. Users appreciate ITC’s granular results which narrow return-to-provision differences and find ITC a helpful parallel check for their tax return.

In addition to the traditional challenges of US outbound calculations, US multinationals face a new challenge with the GMT rules which require complex top-up tax calculations. The Orbitax Global Minimum Tax (GMT) solution handles these new GMT rules and ITC offers full integration by handing-off the needed Subpart F and GILTI inclusion items for the Pillar Two calculations.

Orbitax ITC is cloud based software, supports any form of data input and can integrate with your existing systems using next generation workflow technology to enable collaboration among internal and external stakeholders worldwide.

Provision & Compliance

Orbitax ITC provides reliable and precise calculations for U.S. foreign provisions and compliance and minimizes return-to-provision disparities. Calculations are fully integrated with the Orbitax Global Minimum Tax software.

As part of the Orbitax International Tax Platform (ITP), there are flexible options to import and export data, including API connections to ERP systems (e.g. Oracle & SAP), ONESOURCE Tax Provision, ONESOURCE Income Tax, and data survey tools. ITP also allows for direct uploads of tax department workpapers to automate custom excel based calculations.

Save time and reduce risk by automating the full end-to-end process including automatic data collections, preparation and review with the Orbitax Executable Actions Tool (E.A.T.).

Plan

Orbitax ITC allows you to complete multi-year planning calculations by expanding your base year input with growth assumptions and other input changes. Planning calculations can reflect what-if scenarios, law changes and other tax impacts.

Connections and Integrations

Integrated US International Outbound, CbC Reporting, & Global Minimum Tax calculations

Calculations, reporting, compliance, and planning for Global Minimum Tax, Country-by-Country (CbC) Reporting, and US International Outbound Tax (incl. GILTI, BEAT, FDII, Subpart F, Foreign Dividends, and US FTC) are powered by the Orbitax Global Tax Calculator (GTC). GTC is fully integrated on the Orbitax ITP, combining an extensive, trusted tax law database of 190+ countries with powerful calculation, reporting, and workflow tools.

Example: Country-by-Country reports (CbCr) are completed in the Orbitax CbC Compliance & Reporting solution as part of the Orbitax GTC and can be used to determine the Pillar Two safe harbor exemptions. Qualified Domestic Minimum Top Up Taxes (QDMTT) calculated in the GMT solution are used as a FTC inside the Orbitax ITC when calculating US Subpart F and GILTI which are in turn used by the Orbitax GMT solution when calculating jurisdictional top up taxes for the income inclusion rule (IIR) and the undertaxed profit rule (UTPR) calculations.

Connections to other systems

Orbitax Connect (powered by Microsoft Azure Data Factory) allows seamless integration with other systems through APIs. There are 90 out-of-the-box connections including ERP Systems and databases such as Oracle, SAP, SQL, JD Edwards, Workday, and Netsuite. Connections to other systems can be custom built based on your company needs and department processes.

As an example all relevant calculations from the Global Tax Calculator (Subpart F, GILTI from ITC, and the various components of the Pillar Two calculations (STTR, QDMTT, IIR, UTPR) from GMT) are automatically included in the ONESOURCE Tax Provision calculations.

Automate Each action in the workflow

1. Load Data

Entity Data
Foreign Data
Federal Data

2. Calculate

Subpart F
GILTI
BEAT
Foreign Dividends
US FTC
FDII
Expense Allocation

3. Create Reports

Entity Chart
US FTC by Basket
GILTI Attributes
Foreign E&P by Entity
Foreign Inclusion Summary
RP Interest Look-Through
Tax Provision Report
Income Tax Report

4. Share & File

Tax Authorities
Third-Party Systems
ONESOURCE Tax Provision
Stakeholders
Advisors

And stay in control To keep up

Load Data

Load entity data, foreign data, and federal data from any source - in any format.

Data Mapping: Use the intuitive data mapping tool to connect source data to the corresponding data fields in ITC.

Orbitax Connect: Integrate directly with other API-enabled systems.

Data Survey: Automate the collection of data from individual contributors through Excel, PDF, and data surveys.

Data Transformation: Irrespective of the data format, once loaded in Orbitax ITC, data is converted into a common format (.qnr) and can be used throughout the Orbitax International Tax Platform.

Calculate

The ITC calculation templates are part of the Orbitax Global Tax Calculator and are maintained in a spreadsheet format that can be viewed online or downloaded for local viewing in Excel. The templates are organized with separate areas for inputs, calculations and reports with a full audit trail available for all stakeholder interactions inside the template including review and sign-off.

Create Reports

Standard Reports include: Entity Chart, US FTC by basket, GILTI Inclusion, Foreign E&P by Entity, Foreign Inclusion Summary, RP Interest Look-Through, Tax Provision Report and the Income Tax Report. Define any custom report or get a complete report view in Microsoft Power BI.

Next Gen Workflows with E.A.T.

The Orbitax Executable Actions Tool makes it easy to turn complex processes into repeatable and scalable workflows.

Cut out the manual effort of complex tax work and accelerate any process with no-code integration and automation that connects your systems, colleagues and advisors.

Examples of tasks automated by E.A.T. are data collection, calculation, report generation, population of compliance forms, and final transmission to tax authorities.

E.A.T. comes with visual review and tracking which makes it easy to make refinements as the workflow is deployed.

What our clients say...

Through the comparison, we found a lot of human errors in Excel that were fixed in the International Tax Calculator, that gave me great comfort in the data integrity and all the logic behind it, and helped us build confidence in the product.

Before tax reform, we could pretty much dump everything in a tax pool. Now all the tax expenses have to be tracked and directly linked back to the taxable income. The International Tax Calculator does a great job of separating all the categories of income, tracking all the taxes associated with general income, passive income, and all these things. It’s been really helpful. I can’t even imagine using an Excel model to do this type of work going forward.

Smaller companies without a large foreign imprint might be able to keep everything in Excel, but for a company with a large amount of CFCs or foreign branches and any other type of foreign entities, using the International Tax Calculator would make their lives so much easier.

ITC is much more accurate than Excel models. It’s the consistency of the data that gives us more confidence in the results.

The ability to easily roll data forward is one of the best things about the International Tax Calculator. Now we can build up a really nice database with years of data.

ITC is much more accurate than Excel models. It’s the consistency of the data that gives us more confidence in the results.

The ability to easily roll data forward is one of the best things about the International Tax Calculator. Now we can build up a really nice database with years of data.

Glossary of Terms

Abbreviation	Description
ITC - International Tax Calculator	Orbitax’s US International Outbound tax solution
GTC - Global Tax Calculator	Orbitax’s integrated solution which combines the existing ITC with our new Global Minimum Tax Calculator
E.A.T. - Executable Action Tool	Orbitax’s workflow solution which allows tax departments to create, share, and execute custom business processes based on conditional steps and actions.
API - Application Programing Interface	Automated connection process which allows Orbitax solutions to connect to 3rd-party software in order to streamline tax calculation processes.
IRC - Internal Revenue Code	References to “Section” are made to the United States Internal Revenue Code of 1986, as most recently amended.
TCJA - Tax Cuts and Jobs Act	Congressional revenue act of the United States introduced in 2017 which amended the Internal Revenue Code and introduced significant changes to the United States tax system.
CFC - Controlled Foreign Corporation	A foreign corporation which is controlled by a domestic corporation as defined under Section 957.
BEAT - Base Erosion and Anti-Abuse Tax	Corporate minimum tax imposed under Section 59A related to certain base erosion payments to foreign related parties
FDII - Foreign-Derived Intangible Income	Deemed excess domestic returns that are considered foreign-derived. Certain taxpayers are eligible for an additional deduction related to their FDII income under Section 250.
GILTI - Global Intangible Low-Taxed Income	Income inclusion under Section 951A related to a type of income earned by CFCs and subject to a preferential tax rate through an additional deduction under Section 250.
Subpart F	Type of income earned by a CFC, as defined under Section 952. This type of income gives rise to an income inclusion under Section 951.
FTC -Foreign Tax Credit	Tax credit related to foreign income taxes paid which is used to offset domestic tax liability.
E&P - Earnings and Profits	Measure of economic income of a corporation available for distribution to its shareholders.
RP Interest - Related Party Interest	Interest paid to, or received from, a related party.
FX Rates - Foreign Exchange Rates	Translation rates used to convert functional currency to reporting currency or vice versa.
Int Exp Appt - Interest Expense Apportionment	Assigning interest expense to a category of income for purposes of Foreign Source Income or FDII calculations.
CF- Carryforward	Attribute generated in a prior year which is available to offset current or future taxable income or tax due.
OECD - Organisation for Economic Co-operation and Development	International organization comprised of member countries which work together to develop policy standards to promote sustainable economic growth
QDMTT - Qualified Domestic Minimum Top-up Tax	Minimum tax included in domestic law to increase domestic tax liability to a minimum rate, as defined by Article 10 of the OECD Pillar Two Model Rules.
IIR - Income Inclusion Rule	Rule which requires a parent entity to include a share of income from subsidiaries located in a low-tax jurisdiction when calculating a top-up tax under Pillar Two.
UTPR - UnderTaxed Profits Rule	Acts as backstop to the IIR which collects necessary top-up tax which was not collected under an IIR.
STTR - Subject to Tax Rule	Model treaty provision to be included in double tax treaties which allows a source State to recapture taxing rights on certain intragroup payments.

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