GILTI for Italian Entrepreneurs

Once you are a US tax resident, your Italian SRL is most likely a CFC. GILTI taxes its excess earnings to you personally — at rates up to 37% if held individually.

GILTI exposure analysis and structuring for US-resident Italians who own Italian operating companies (likely CFCs).

U.S. shareholders taxed on the profits of a foreign company

Who has GILTI exposure

What the GILTI / CFC analysis produces

Service scope

U.S. persons owning Italian or foreign companies

Who it's for

Cost of a GILTI / CFC review

Pricing

Fixed fee defined case-by-case after a preliminary consultation, based on the number of CFCs involved, the perimeter of the engagement (CFC/GILTI assessment, restructuring, annual Form 5471 + GILTI inclusion) and the operational complexity. The preliminary consultation is a 45-minute paid online session ($250); the engagement letter with the agreed fee is signed before any chargeable work begins.

GILTI, Subpart F and CFC rules: answers

Is my Italian SRL a CFC?

If you are a US tax resident (or US citizen) and own ≥10% of the Italian SRL, and US persons collectively own >50%, then yes — it's a Controlled Foreign Corporation under §957. Most family-held Italian SRLs with a US-resident shareholder qualify.

What does GILTI tax?

GILTI (§951A) taxes you on the CFC's 'global intangible low-taxed income' — essentially earnings exceeding 10% of the CFC's tangible business assets (Qualified Business Asset Investment). For most service-based Italian SRLs with low tangible assets, most net earnings flow through as GILTI.

What's the rate?

Held individually: ordinary rates up to 37%. Held through a US C-Corp: §250 deduction reduces 50% of GILTI from C-Corp taxable income, yielding ~10.5% effective rate. Italian taxes paid by the CFC are partially creditable under §960 (80% of indirect FTC). High-tax-exclusion (HTE) election can exclude income from GILTI when foreign effective tax rate exceeds 18.9%.

Should I restructure my Italian SRL ownership?

Often yes. Holding the SRL through a US C-Corp can drop the GILTI rate from 37% to ~10.5%. The trade-off: the C-Corp itself pays 21% on its other income, and dividends to you suffer additional tax. Modeling the full lifecycle is essential before restructuring.

Do I really have to file Form 5471 every year?

Yes, for every CFC interest, every year — even with no income. The omission penalty is $10,000 per form per year. The IRS automatically assesses this penalty when delinquency is detected. Catch-up filings under reasonable-cause provisions are possible but require proper procedure.

Can the GILTI HTE election eliminate my exposure?

Possibly. If the CFC's effective tax rate in Italy exceeds 18.9% (90% of the US 21% corporate rate), you can elect to exclude that income from GILTI. Italian SRLs paying full IRES + IRAP often qualify, but the election is annual and must be carefully modeled with FTC implications.

Related services

Where we work — office and areas served

GILTI for Italian Entrepreneurs is handled from our Florida practice for Italian clients living in the United States and in Italy: office in St. Petersburg (Pinellas County, Tampa Bay), assistance across Florida — including Miami and South Florida — and remotely throughout Italy.

Physical office (by appointment): IIILEX International Consulting LLC, 7901 4th St N STE 300, St. Petersburg, FL 33702, US · +1 (786) 604-8763 · +39 335 344 9660 · us@3lex.us

Areas served

Office hours: Monday to Friday, 09:00–18:00 (US Eastern Time). Italian clients are also served in the Italian morning window (CET). Working languages: Italian and English.

Consultations are held online (video call) or in person at the St. Petersburg office. Documents are exchanged securely by e-mail.


Next step — book a 45-minute online consultation

Book a consultation (USD 250 · 45 minutes) · Send a contact request

About the firm

IIILEX International Consulting LLC is the Florida-based practice of Avv. Dott. Massimo Leonardi — Italian-qualified Attorney (Avvocato), Dottore Commercialista and Statutory Auditor (Revisore Legale), qualified in Italy, with 30+ years of Italian practice. We work exclusively on cross-border matters between Italy and the United States, in coordination with licensed U.S. professionals for matters of U.S. law.

IIILEX International Consulting LLC · 7901 4th St N STE 300, St. Petersburg, FL 33702 · us@3lex.us · +1 (786) 604-8763 · +39 335 344 9660

Versione italiana

Massimo Leonardi is admitted to practice law in Italy and is not admitted to practice law in Florida or elsewhere in the United States. He is qualified in Italy as Dottore Commercialista and Revisore Legale and is not a U.S. Certified Public Accountant. IIILEX International Consulting LLC provides cross-border consulting and Italian legal and tax advisory services. Matters requiring advice on U.S. or Florida law are handled in coordination with appropriately licensed U.S. professionals.