International changes in HR 1 prompt Vermont committee to weigh sales-factor enforcement and GILTI/FDDEI effects Testimony explained how federal international provisions — the foreign-derived deduction and the renamed GILTI (net CFC-tested income) — interact poorly with state sales-factor apportionment and could increase reported inclusions unless states adopt a sales-factor approach or decouple.

Vermont’s tax landscape is about to change as federal international provisions clash with state policies, raising questions on how to ensure fair revenue without losing track of multinational sales.

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