Form 8993, Section 250 Deduction for Foreign-Derived Intangible Income (FDII) and GILTI
Form 8993 is how a domestic corporation figures its section 250 deduction for foreign-derived intangible income and GILTI. Fill in the official IRS PDF below and download it.
This is the genuine IRS PDF, unmodified. Source: IRS official page.
What is 8993?
Form 8993, Section 250 Deduction for Foreign-Derived Intangible Income (FDII) and Global Intangible Low-Taxed Income (GILTI), computes the deduction domestic corporations may claim under section 250. FDII is roughly the portion of a corporation’s intangible income attributable to serving foreign markets, and the deduction also applies to any GILTI inclusion.
The form works through deduction eligible income, foreign-derived deduction eligible income, deemed intangible income, and the taxable income limitation before arriving at the allowed deduction. GILTI amounts come from Form 8992.
Who files 8993?
- Domestic corporations with foreign-derived intangible income from export sales or services
- Domestic corporations with a GILTI inclusion from Form 8992
- Corporations subject to the taxable income limitation on the section 250 deduction
- Certain individuals who elect under section 962 to be taxed at corporate rates on CFC income
How to fill out 8993
- Enter the corporation’s name and EIN, then compute deduction eligible income in Part I.
- Figure foreign-derived deduction eligible income from qualifying foreign sales and services in Part II.
- Compute deemed intangible income and the FDII amount in Part III.
- Apply the taxable income limitation and the deduction percentages in Part IV to arrive at the section 250 deduction.
- Download the completed PDF and attach it to the corporation’s income tax return.
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Frequently asked questions
Can individuals or S corporations claim the section 250 deduction?
The deduction is designed for domestic C corporations. Individuals generally cannot claim it, though an individual who makes a section 962 election with respect to CFC income may get the benefit of the GILTI portion. Pass-through entities do not claim it at the entity level.
How do Forms 8992 and 8993 fit together?
Form 8992 computes the GILTI inclusion that goes into income. Form 8993 then computes the section 250 deduction against that inclusion and against FDII. A corporation with both items typically files both forms.