8991 Tax on Base Erosion Payments of Taxpayers with Substanti

Form

8991

(December 2018)
Department of the Treasury
Internal Revenue Service

Tax on Base Erosion Payments of Taxpayers With
Substantial Gross Receipts
For tax year beginning
▶

, and ending

OMB No. 1545-0123

, 20

Go to www.irs.gov/Form8991 for instructions and the latest information.
▶ See instructions.
Employer identification number

Name

Part I

, 20

Applicable Taxpayer

Check box if this form is being filed by a taxpayer with which another taxpayer has been aggregated under section 59A(e)(3) . ▶
If the above box is checked, attach a statement listing the names and EINs of all separate taxpayers taken into account in the
determination of “1 person” under section 59A(e)(3).
(a)

(b)

(c)

First
Preceding
Tax Year

Second
Preceding
Tax Year

Third
Preceding
Tax Year

1a Gross receipts of the applicable taxpayer. See instructions . . . . . .
b Gross receipts from partnerships . . . . . . . . . . . . . . .
c Gross receipts of all other persons treated as 1 person as the “applicable
taxpayer” pursuant to section 59A(e)(3) . . . . . . . . . . . . .
d Gross receipts. Combine lines 1a through 1c . . . . . . . . . . .
e Gross receipts of first, second, and third preceding tax years. Combine columns (a), (b), and (c) of line
1d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
f 3-year average annual gross receipts (Divide line 1e by 3.0) . . . . . . . . . . . . . .
g Is line 1f $500 million or more?
Yes. Continue to line 2.
No. STOP here and attach this form to your tax return.
2a Aggregate base erosion tax benefit (from Schedule A, line 14) . . . . . . . . . . . . . .
b Aggregate amount of deductions allowable under Chapter 1 of the Internal Revenue Code . . . .
c Other allowable deductions not included in line 2b above . . . . . . . .
2c
d Base erosion tax benefits resulting from reductions in insurance premiums
reported on Schedule A, line 8, column a-2 . . . . . . . . . . . . .
2d
e Base erosion tax benefits resulting from reductions in gross receipts reported on
Schedule A, line 10, column a-2 . . . . . . . . . . . . . . . .
2e
f Add lines 2c through 2e . . . . . . . . . . . . . . . . . . . . . . . . . .
g Total deductions for amounts paid or accrued for services to which the exception
2g
under section 59A(d)(5) applies (from Schedule A, line 5b) . . . . . . . .
h Qualified derivative payments excepted by section 59A(h) . . . . . . . .
2h
2i
i Total deductions allowed under sections 172, 245A, and 250 for the tax year. .
j Combine lines 2g through 2i . . . . . . . . . . . . . . . . . . . . . . . . .
k Total Deductions. Subtract line 2j from the sum of line 2b and line 2f . . . . . . . . . . .
l Base Erosion Percentage for purposes of section 59A(c)(4)(A). Divide line 2a by line 2k . . . .
m Is the taxpayer’s base erosion percentage on line 2l 3% or higher (2% or higher for a bank or securities
dealer)?
Yes. Continue to Part II.
No. STOP after completing Part I and Schedule A and attach this form to your tax return.
For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 37815N

1e
1f

2a
2b

2f

2j
2k
2l

%

Form 8991 (12-2018)

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Form 8991 (12-2018)

Part II

Modified Taxable Income (MTI)

3a Taxable income after net operating loss and special deductions . . . . . . . . . . . . .
b Base erosion tax benefits for the tax year with respect to base erosion payments . . . . . . .
c Base erosion percentage of the net operating loss deduction allowed under section 172 for the tax year.
See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
d Modified Taxable Income. See instructions . . . . . . . . . . . . . . . . . . .

Part III

5a
b
c
d
e

3c
3d

Regular Tax Liability Adjusted for Purposes of Computing Base Erosion Minimum Tax Amount

4a Regular tax liability . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b Allowable credits, as adjusted (from Schedule B, line 7) . . . . . . . . . . . . . . . .
c Regular tax liability adjusted for purposes of computing Base Erosion Minimum Tax Amount. Subtract
line 4b from line 4a . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part IV

3a
3b

4a
4b
4c

Computation of Base Erosion Minimum Tax Amount

Modified Taxable Income (from line 3d) . . . . . . . . . . . . . . . . . . . . .
Tax rate applicable for current tax year . . . . . . . . . . . . . . . . . . . . .
Base Erosion Minimum Tax. Multiply line 5a by line 5b . . . . . . . . . . . . . . . .
Regular tax liability adjusted for purposes of computing Base Erosion Minimum Tax Amount (from
line 4c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Base Erosion Minimum Tax Amount. Subtract line 5d from line 5c. If zero or less, enter “-0-” . . .

5a
5b
5c

%

5d
5e
Form 8991 (12-2018)

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Form 8991 (12-2018)

Schedule A Base Erosion Payments and Base Erosion Tax Benefits (see instructions)
(Check all applicable boxes in
columns (c), (d), and (e) below)

Type of Base Erosion Payments

(a-1)

(a-2)

(b-1)

(b-2)

(c)

Aggregate
Base Erosion
Payment for
Purposes of
Base Erosion
Percentage

Aggregate Base
Erosion Tax
Benefit for
Purposes of
Base Erosion
Percentage

Base Erosion
Payment for
Purposes of
Modified
Taxable
Income

Base Erosion
Tax Benefit
for Purposes
of Modified
Taxable
Income

Any 25%
Owner of
the Taxpayer

(d)

(e)

Person Related
Any Person
Under Sections Related Within
267(b) or
the Meaning of
707(b)(1) to the
Section 482
Taxpayer or any to the Taxpayer
25% Owner of
the Taxpayer

1
2
3

Reserved for future use . . . . . . . . . . . . . .
Reserved for future use . . . . . . . . . . . . . .
Purchase or creations of property rights for intangibles (patents,
trademarks, etc.) . . . . . . . . . . . . . . . .
4 Rents, royalties, and license fees . . . . . . . . . . .
5a Compensation/consideration paid for services NOT excepted by
section 59A(d)(5) . . . . . . . . . . . . . . . .
b Compensation/consideration paid for services excepted by
section 59A(d)(5) . . . . . . . . .
$
6 Interest expense . . . . . . . . . . . . . . . .
7 Payments for the purchase of tangible personal property . . .
8

Premiums and/or other considerations paid or accrued for
insurance and reinsurance as covered by section 59A(d)(3) and
section 59A(c)(2)(A)(iii) . . . . . . . . . . . . . .
Form 8991 (12-2018)

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Form 8991 (12-2018)

Schedule A Base Erosion Payments and Base Erosion Tax Benefits (see instructions) (continued from page 3)
(Check all applicable boxes in
columns (c), (d), and (e) below)

Type of Base Erosion Payments

(a-1)

(a-2)

(b-1)

(b-2)

(c)

Aggregate
Base Erosion
Payment for
Purposes of
Base Erosion
Percentage

Aggregate Base
Erosion Tax
Benefit for
Purposes of
Base Erosion
Percentage

Base Erosion
Payment for
Purposes of
Modified
Taxable
Income

Base Erosion
Tax Benefit
for Purposes
of Modified
Taxable
Income

Any 25%
Owner of
the Taxpayer

(d)

(e)

Person Related
Any Person
Under Sections Related Within
267(b) or
the Meaning of
707(b)(1) to the
Section 482
Taxpayer or any to the Taxpayer
25% Owner of
the Taxpayer

9a Nonqualified derivative payments . . . . . . . . . . .
b Qualified
derivative
payments
excepted
by
section
59A(h). . . . . . . . . . . . .
$
10 Payments reducing gross receipts made to surrogate foreign
corporation . . . . . . . . . . . . . . . . . .
11 Other payments—specify . . . . . . . . . . . . .
12 Combine lines 3 through 11 . . . . . . . . . . . .
13 Base erosion tax benefits related to payments reported on lines 3
through 11, on which tax is imposed by section 871 or 881, with
respect to which tax has been withheld under section 1441 or
1442 at 30% statutory withholding tax rate . . . . . . .
14 Total base erosion tax benefits for purposes of computing base
erosion percentage. Subtract line 13, column (a-2) from line 12,
column (a-2). Enter on Part I, line 2a
. . . . . . . . .
15 Portion of base erosion tax benefits reported on lines 3 through
11, on which tax is imposed by section 871 or 881, with respect
to which tax has been withheld under section 1441 or 1442 at
reduced withholding rate pursuant to income tax treaty. Multiply
ratio of percentage withheld divided by 30% times tax benefit.
See instructions . . . . . . . . . . . . . . . .
16 Total base erosion tax benefits for purposes of determining MTI.
Subtract the sum of line 13, column (b-2); and line 15, column
(b-2) from line 12, column (b-2). Enter this amount on Part II,
line 3b . . . . . . . . . . . . . . . . . . .
Form 8991 (12-2018)

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Form 8991 (12-2018)

Schedule B Credits Reducing Regular Tax Liability in Computing Base Erosion Minimum Tax Amount (BEMTA)
Part I
Credits Allowed Against Regular Tax (see instructions)
1
2
3
4
5
6
7

Total credits allowed in current year. Enter the amount from Form 1120, Schedule J, Part I, line 6; or the
applicable line of your return . . . . . . . . . . . . . . . . . . . . . . . .
Credits for increasing research activities from line 1c of all Parts III of Form 3800
2
Total allowed credit for increasing research activities for current year. Enter the amount of research
credit reported in Form 3800, Part II, line 38. See instructions . . . . . . . . . . . . . .
Enter smaller of Schedule B, Part II, line 11 or Part III, line 16 . . . . . . . . . . . . . .
Limitation of applicable section 38 credits. Multiply line 4 by 80% (0.80) . . . . . . . . . .
Adjustments to allowed credits. Add lines 3 and 5 . . . . . . . . . . . . . . . . .
Credits allowed against regular tax in computing BEMTA. Subtract line 6 from line 1. Enter here and
on Form 8991, line 4b . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part II
8
9
10
11

12
13
14
15
16

3
4
5
6
7

Applicable section 38 credits
(Only complete Parts II and III if you have allowed applicable section 38 credits.)

Low income housing credit from lines 1d and 4d of all Parts III of Form 3800 . .
8
Renewable electricity production credit but only to extent of the renewable
electricity under section 45(a) from lines 1f and 4e of all Parts III of Form 3800 .
9
Investment credit but only to extent of energy credit property under section 48
from line 4a of all Parts III of Form 3800 . . . . . . . . . . . . . .
10
Total allowed applicable section 38 credits for current year. Enter the amount of applicable credits
reported in Form 3800, Part II, line 38. See instructions . . . . . . . . . . . . . . . .

Part III

1

BEMTA determined without adjustment for applicable section 38 credits

Base erosion minimum tax (Form 8991, line 5c) . . . . . . . . . . . . .
Regular tax liability (Form 8991, line 4a) . . . . . . . . . . . . . . . .
Subtract Schedule B, Part I, line 3 from line 1 . . . . . . . . . . . . . .
Regular tax adjusted for credits that offset BEMTA. Subtract line 14 from line 13 . .
Base erosion minimum tax determined without adjustment for applicable section 38
line 15 from line 12; if zero or less, enter -0-. . . . . . . . . . . . . . .

. . . . .
. . . . .
. . . . .
. . . . .
credits. Subtract
. . . . .

11
12
13
14
15
16
Form 8991 (12-2018)