How do GILTI and FDll reduce the incentive for U.S. firms to shift overseas the profits due to intangible assets used to produce foreign goods? ... Global intangible low tax income (GILTI): (Select all answers that apply.) A. The effect of the GILTI tax is to ensure that excess profits earned abroad are subject to a maximum 10.5% tax rate, while still providing some incentive for firms to minimize their foreign taxes. B. The effect of the GILTI tax is to ensure that excess profits earned abroad are subject to minimum 21% corporate tax rate, while still providing some incentive for firms to minimize their foreign taxes. C. The assumption behind GILTI is that profits in excess of a 10% return represent a return on intangibles or other intellectual property owned by the foreign subsidiary, not the parent corporation. D. An outdated income category, which is equal to the firm's foreign earnings in excess of a "normal" return on the firm's tangible depreciable foreign assets (equipment, buildings, factories). E. The effect of the GILTI tax is to ensure that excess profits earned abroad are subject to a minimum 10.5% tax rate, while still providing some incentive for firms to minimize their foreign taxes. UF The assumption behind GILTI is that profits in excess of a 10% return represent a return on intangibles or other intellectual property owned by the parent corporation, not the foreign subsidiary. G. A new income category, which is equal to the firm's foreign earnings in excess of a "normal" return on the firm's tangible depreciable foreign assets (equipment, buildings, factories). Foreign-derived intangible income (FDII): (Select all answers that apply.) O A. FDII receives a special lower tax rate of 13.125%, rather than the normal 21% rate. B. An income category, which is defined as the corporation's U.S. post-tax income from the export of goods or services in excess of a 10% return on the firm's associated depreciable domestic assets. C. The intent of this lower tax is to make it more attractive for U.S. firms to hold their intangible assets domestically and export their products and services. OD. An income category, which is defined as the corporation's U.S. pre-tax income from the export of goods or services in excess of a 10% return on the firm's associated depreciable domestic assets. E. The intent of this lower tax is to make it more attractive for U.S. firms to hold their intangible assets in a foreign country and import their products and services. O F. FDII receives a higher tax rate of 21%, rather than the normal 13.125% rate. G. FDll receives a special lower tax rate of 10.5%, rather than the normal 13.125% rate. How do GILTI and FDll reduce the incentive for U.S. firms to shift overseas the profits due to intangible assets used to produce foreign goods? ... Global intangible low tax income (GILTI): (Select all answers that apply.) A. The effect of the GILTI tax is to ensure that excess profits earned abroad are subject to a maximum 10.5% tax rate, while still providing some incentive for firms to minimize their foreign taxes. B. The effect of the GILTI tax is to ensure that excess profits earned abroad are subject to minimum 21% corporate tax rate, while still providing some incentive for firms to minimize their foreign taxes. C. The assumption behind GILTI is that profits in excess of a 10% return represent a return on intangibles or other intellectual property owned by the foreign subsidiary, not the parent corporation. D. An outdated income category, which is equal to the firm's foreign earnings in excess of a "normal" return on the firm's tangible depreciable foreign assets (equipment, buildings, factories). E. The effect of the GILTI tax is to ensure that excess profits earned abroad are subject to a minimum 10.5% tax rate, while still providing some incentive for firms to minimize their foreign taxes. UF The assumption behind GILTI is that profits in excess of a 10% return represent a return on intangibles or other intellectual property owned by the parent corporation, not the foreign subsidiary. G. A new income category, which is equal to the firm's foreign earnings in excess of a "normal" return on the firm's tangible depreciable foreign assets (equipment, buildings, factories). Foreign-derived intangible income (FDII): (Select all answers that apply.) O A. FDII receives a special lower tax rate of 13.125%, rather than the normal 21% rate. B. An income category, which is defined as the corporation's U.S. post-tax income from the export of goods or services in excess of a 10% return on the firm's associated depreciable domestic assets. C. The intent of this lower tax is to make it more attractive for U.S. firms to hold their intangible assets domestically and export their products and services. OD. An income category, which is defined as the corporation's U.S. pre-tax income from the export of goods or services in excess of a 10% return on the firm's associated depreciable domestic assets. E. The intent of this lower tax is to make it more attractive for U.S. firms to hold their intangible assets in a foreign country and import their products and services. O F. FDII receives a higher tax rate of 21%, rather than the normal 13.125% rate. G. FDll receives a special lower tax rate of 10.5%, rather than the normal 13.125% rate