Effectively retroactively, amounts included in a taxpayer’s federal income under Internal Revenue Code Sections 965(a) (the one-time “transition tax”) and 951A (global low-taxed intangible income, aka “GLTI”) are eligible for Utah’s 50% dividends received deduction. However, the federal deduction for foreign direct investment (“FDI”) income is not permitted on the Utah state return, and as such, Utah’s 50% dividends received deduction applies to a taxpayer’s gross amount of GILTI and section 965 income. If your business is operating in Utah and overseas, Withum’s SALT group and International Tax Team can assist with any questions you have.
Although the IRS has extended the deadline for payment of 2019 Individual Income Tax due (up to $1 million) and Corporate Income Tax due (up to $10 million) to July 15, 2020, The deadline for payment of Utah state taxes has not changed. Utah has an automatic 6-month extension to file these taxes but payment must be made by April 15, 2020. Prepayment requirements for filing extension can be found here.