8991 Tax on Base Erosion Payments of Taxpayers with Substanti

Form

8991

(Rev. December 2023)
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 (EIN)

Name

Part I

, 20

Applicable Taxpayer Determination

Check box if this form is being filed by a taxpayer with which another taxpayer has been aggregated under Regulations section 1.59A-2(c)
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 Regulations section 1.59A-2(c).
(a)

(b)

(c)

First
Preceding
Tax Year

Second
Preceding
Tax Year

Third
Preceding
Tax Year

1a Gross receipts of the taxpayer (see instructions) . . . . . . . . . .
b Gross receipts from partnerships . . . . . . . . . . . . . . .
c Gross receipts of all other persons treated as 1 person pursuant to
Regulations section 1.59A-2(c) . . . . . . . . . . . . . . .
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 (see instructions) . . . . . . . . . . . . . . . .
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 Base erosion tax benefit (from Schedule A, line 15, column (a-2)) . . . . . . . . . . . .
b Amount of deductions allowed under chapter 1 of the Internal Revenue Code . . . . . . . .
c Base erosion tax benefits resulting from reductions in insurance premiums
reported on Schedule A, line 8, column (a-2) . . . . . . . . . . . .
2c
d Base erosion tax benefits resulting from reductions in gross receipts reported on
Schedule A, line 10, column (a-2) . . . . . . . . . . . . . . . .
2d
e Add lines 2c and 2d . . . . . . . . . . . . . . . . . . . . . . . . . . .
f Total deductions for amounts paid or accrued for services to which the exception
under Regulations section 1.59A-3(b)(3)(i) applies (from Schedule A, line 5b) . .
2f
g Qualified derivative payments excepted by Regulations section 1.59A-6(b) . .
2g
h Total deductions allowed under sections 172, 245A, and 250 for the tax year. .
2h
i Does the taxpayer elect to waive deductions in accordance with Regulations
section 1.59A-3(c)(6)(i)? . . . . . . . . . . . . . . . . . . .
2i
Yes. Complete Schedule B. Enter the amount from line 15 of Schedule B.
No. Enter -0-.
j Deductions for exchange losses from section 988 transactions described in
2j
Regulations section 1.59A-2(e)(3)(ii)(D) . . . . . . . . . . . . . .
k Deductions for TLAC securities and foreign TLAC securities described in
Regulations section 1.59A-2(e)(3)(ii)(E) . . . . . . . . . . . . . .
2k
l Reinsurance losses incurred and claims payments described in Regulations
section 1.59A-2(e)(3)(ii)(F) . . . . . . . . . . . . . . . . . . .
2l
m Combine lines 2f through 2l . . . . . . . . . . . . . . . . . . . . . . . . .
n Total deductions. Subtract line 2m from the sum of line 2b and line 2e . . . . . . . . . .
o Base erosion percentage. Divide line 2a by line 2n . . . . . . . . . . . . . . . . .
p Is the taxpayer’s base erosion percentage on line 2o 3% or higher (2% or higher for a bank or securities
dealer)?
Yes. Continue to Part II.
No. STOP after completing Part I, Part V, and Schedule A (and, if necessary, Schedule B) and
attach this form to your tax return.
For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 37815N

1e
1f

2a
2b

2e

2m
2n
2o

%

Form 8991 (Rev. 12-2023)

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Form 8991 (Rev. 12-2023)

Part II

Modified Taxable Income (MTI)

3a Taxable income after net operating loss (see instructions) . . . . . . . . . . . . . . .
b Base erosion tax benefits for the tax year from Schedule A, line 15, column (b-2) . . . . . . .
c Base erosion percentage of the net operating loss deduction allowed under section 172 for the tax year
(see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
d MTI. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III

5a
b
c
d
e
6
7
8

. . .
. . .
erosion
. . .

. . . . . . . . . .
. . . . . . . . . .
minimum tax amount. Subtract
. . . . . . . . . .

4a
4b
4c

Computation of Base Erosion Minimum Tax Amount

MTI (from line 3d) . . . . . . . . . . . . . . . . . . . . . . . . .
BEAT 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
4c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Base erosion minimum tax amount. Subtract line 5d from line 5c. If zero or less, enter -0-.

Part V

3c
3d

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

4a Regular tax liability . . . . . . . . . . . . . . .
b Allowed credits, as adjusted (from Schedule C, line 7) . . .
c Regular tax liability adjusted for purposes of computing base
line 4b from line 4a . . . . . . . . . . . . . . .

Part IV

3a
3b

. .
. .
. .
(from
. .
. .

.
.
.
line
.
.

5a
5b
5c

%

5d
5e

Additional Questions (see instructions)

Does the taxpayer elect to use financial statements per Regulations section 1.59A-3(b)(4)(i)(D) for purposes
of calculating interest expense allocable to a foreign corporation’s effectively connected income? . . .
In the current year, did the taxpayer capitalize to inventory, or include in cost of goods sold (COGS), costs
for any payment to a related foreign party that the taxpayer treated as a deduction in any prior tax year? .
If “Yes” for line 7, enter the following:

Yes

No

Yes

No

(i)

(ii)

(iii)

(iv)

Amount Capitalized
or Included in COGS

Description of Item

Line Item Reported
on in Prior Year

Tax Year
Form 3115 Was Filed

a
b
c
Form 8991 (Rev. 12-2023)

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Form 8991 (Rev. 12-2023)

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)

Aggregate
Group’s Base
Erosion Payments

Aggregate
Group’s Base
Erosion Tax
Benefits

(b-1)

(b-2)

Taxpayer’s Base Taxpayer’s Base
Erosion Payments
Erosion Tax
Benefits

(c)
Any 25%
Owner of
the Taxpayer

(d)

(e)

Person Related
Any Person
Under Section 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
Regulations section 1.59A-3(b)(3)(i) . . . . . . . . . .
b Compensation/consideration paid for services excepted by
Regulations section 1.59A-3(b)(3)(i) . . . $
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 Regulations section
1.59A-3(b)(1)(iii) . . . . . . . . . . . . . . . .
Form 8991 (Rev. 12-2023)

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Form 8991 (Rev. 12-2023)

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

9a Nonqualified derivative payments
. . . . . . .
b Qualified derivative payments excepted by Regulations
1.59A-6(b) . . . . . . . . . . . $
10 Payments reducing gross receipts made to surrogate
corporation . . . . . . . . . . . . . . .
11 Other payments—specify . . . . . . . . . .
12 Combine lines 3 through 11 . . . . . . . . .

(a-1)

(a-2)

Aggregate
Group’s Base
Erosion Payments

Aggregate
Group’s Base
Erosion Tax
Benefits

(b-1)

(b-2)

Taxpayer’s Base Taxpayer’s Base
Erosion Payments
Erosion Tax
Benefits

(c)
Any 25%
Owner of
the Taxpayer

(d)

(e)

Person Related
Any Person
Under Section 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

. . .
section
foreign
. . .
. . .
. . .

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 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% (0.30) times tax
benefit. See instructions . . . . . . . . . . . . .
15 Total base erosion tax benefits. Subtract the sum of line 13 and
line 14 from line 12. Enter the amount from column (a-2) on Part
I, line 2a. Enter the amount from column (b-2) on Part II, line 3b
Form 8991 (Rev. 12-2023)

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Form 8991 (Rev. 12-2023)

Schedule B Waiver of Deductions (see instructions)

(a)
Description of item or property to which the
deduction relates

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

(b)
(c)
(d)
(e)
(f)
Date on which, or Provision of Code Line number on
Name of foreign
Taxpayer
period in which,
and regulations,
the controlled
related party that
identification
the waived
as applicable, that group member tax is or will be the number of foreign
deduction was
allows the
return where the
recipient of the
related party
paid or accrued
deduction for
deduction is
payment that
which this
reported
generates the
election relates
deduction

(g)
Country of
organization of
the foreign
related party

Totals from attachment, if necessary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total deductions waived per Regulations section 1.59A-3(c)(6)(i). Add the amounts in column (i). Enter the result here and on Part I, line 2i

(h)
(i)
Amount of
Amount of
deduction claimed deduction being
for the tax year waived for the tax
with respect to the year with respect
item or property
to the item or
property

.

.

.

.

.

Form 8991 (Rev. 12-2023)

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Form 8991 (Rev. 12-2023)

Schedule C 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 (see instructions) . . . . . . . . . . . . . . . .
Credits for increasing research activities from Form 3800. See instructions . .
2
Total allowed credit for increasing research activities for current year. Enter the amount of research
credit reported on Form 3800, Part II, line 38. See instructions . . . . . . . . . . . . .
Enter smaller of Schedule C, 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 Form 3800. See instructions. . . . . . .
8
Renewable electricity production credit from Form 3800. See instructions . . .
9
Investment credit but only to extent of energy credit property under section 48
from Form 3800. See instructions . . . . . . . . . . . . . . . .
10
Total allowed applicable section 38 credits for current year. Enter the amount of applicable credits
reported on Form 3800, Part II, line 38. See instructions. . . . . . . . . . . . . . . .

Part III

1

11

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 C, 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
. . . . .

12
13
14
15
16
Form 8991 (Rev. 12-2023)