All glossary terms
Glossary term
Transition Tax (Section 965)
TCJA one-time tax on previously deferred foreign earnings of U.S. shareholders of certain foreign corporations.
Related terms
1
Jurisdictions
us
Definition
Section 965 imposed a one-time tax on accumulated post-1986 deferred foreign earnings of specified foreign corporations as of late 2017. Cash and equivalents were taxed at an effective rate of 15.5 percent and non-cash at 8 percent.
Examples
- A U.S. multinational with substantial offshore earnings owed substantial Section 965 transition tax in 2017.
Related terms
Translations
ESimpuesto de transición
ZH过渡税
DEÜbergangssteuer
FRtaxe de transition
JA移行税
Citations
26 U.S.C. · 965
Related citations
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This entry cites
Primary sources
- IRS: Section 965Verified 2026-05-20
Important disclaimer
This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.