Our e1118 module allows multinational corporations to simplify their foreign tax credit calculations. Foreign tax credit is one of the largest tax credits available to multinational corporations; thus, accurate computations and the ability to perform alternative calculations are vital to many companies.

e1118 simplifies foreign tax credit computations, one of the most complex set of calculations for large multinational corporations, by seamlessly interfacing with Tax Series’ e5471 and e1120 modules in an effort to provide users with the most comprehensive international tax calculations available on the market today.

General Features

  • Allows for the automatic population of foreign source income from CFC calculations
    • Subpart F Income
    • Deemed Paid Credit on Subpart F Income
    • Section 78 Gross Up on Subpart F Income
    • Dividend Income
    • Deemed Paid Credit on Dividend Income
    • Section 78 Gross Up on Dividend Income
    • Investment in US Properties under Section 956
    • Deemed Paid Credit on Section 956 Inclusion
    • Section 78 Gross Up on Section 956 Inclusion
    • Exchange Gain or Loss on distribution of Previously Tax Income
  • Provides automatic sourcing of foreign source income by CFCs and foreign branches
  • Provides automatic sourcing of look-through income items
  • Allows for the application of comprehensive foreign tax computation rules
    • High tax kick-out
    • Separate Limitation Loss
    • NOL allocation
    • Overall Foreign Loss
    • Overall Domestic Loss
    • Loss recaptures
    • Foreign tax credit limitation
  • Provides flexible income sourcing and expense apportionments
  • Allows for multiple scenario processing to support tax planning
  • Maintains organizational structure by year and by calculation scenario
  • Handles simple to complex organizational structures

Calculation Capabilities

  • Allows income and assets to be sourced to default basket for simplified and efficient processing
  • Allocates or apportions expenses directly using user-defined or system generated methods
  • Provides the ability for users to create user-defined methods easily by defining which trial balance amounts to include in the apportionment base
  • Performs interest expense apportionment on a FMV or tax basis of asset method at the affiliated group level
  • Handles earnings and profit bump for determining tax basis assets automatically
  • Performs the Passive High Tax Kick-out test
  • Applies Sec 904(f) basket loss allocation and recharacterization rules
  • Applies NOL rules
  • Calculates the regular and AMT Foreign Tax Credit by 904(d) basket and determines whether each basket is in excess credit or limitation position
  • Tracks carryovers and carries them into subsequent year’s calculations automatically
  • Applies the related party look-through rules for accurate income characterization
  • Posts calculated U.S. shareholder inclusion amounts and creditable taxes from the CFCs calculations and creates tax adjustments for 1118 and 1120 purposes automatically
  • Handles liquidations and mergers dynamically
  • Populates Form 1118, Schedule A, basket detail by country automatically

Review Capabilities

  • Generates online review forms that are easy to navigate quickly
  • Produces easy to understand reports that users can print and/or integrate with Microsoft® Excel®
  • Produces QBU level currency reports as well as legal entity level reports in the parent currency
  • Provides the ability to create and navigate Form 1118 with supporting whitepaper easily
  • Offers users the capability to create a print binder and organize and attach other forms if needed


  • Provides multi-year and multi-scenario capabilities that let users change data or tax attributes and see the results quickly in order to compare to other scenarios