Alaska Administrative Code — Title 15 (Revenue)
15 AAC 20.385
Treatment of foreign dividends and royalties
# (a)
Income from intercompany transactions, including the receipt or payment of dividends and royalties, among members of the water's edge combined group must be eliminated.
# (b)
Dividends and royalties received by members of the water's edge combined group from a corporation incorporated outside the United States that is not included in the water's edge combined return
# (1)
are business income if they are received from an affiliated corporation or meet the requirements of 15 AAC 19.031; and
# (2)
must be included as business income of the water's edge combined group even if paid from earnings of years before the current tax year when the payors were members of the taxpayer's worldwide combined group.
# (c)
Proration of a deduction under 15 AAC 19.041 will not be made to the foreign dividends and royalties excluded by AS 43.20.145(b)(1) and (3).
# (d)
Under Internal Revenue Code section 482 (26 U.S.C. 482), the department will, in its discretion, reallocate a deduction to a corporation excluded from the water's edge combined group.
(Eff. 7/9/93, Register 127; am 3/6/98, Register 145)
Statutory Authority:
Authority:
AS 43.05.080 AS 43.20.145
Editor's note:
In 2012 the revisor of statutes, acting under AS 01.05.031, renumbered former AS 43.20.073 as AS 43.20.145.
As of Register 204 (January 2013), the regulations attorney made a conforming technical revision under AS 44.62.125(b)(6), to 15 AAC 20.385, so that the cross-reference to former AS 43.20.073(b)(1) and (3) now refers to the renumbered statute, AS 43.20.145(b)(1) and (3). In addition, the regulations attorney made a conforming technical revision to the authority citation that follows 15 AAC 20.385, so that the citation to former AS 43.20.073 now refers to the renumbered statute, AS 43.20.145.
Amendment history
Eff. 7/9/93, Register 127; am 3/6/98, Register 145
Source: official source document (full AAC Title 15 PDF)
In this chapter (40 sections)
- 20.130 · Rates of tax
- 20.135 · Alternative minimum tax and credit for prior year minimum tax
- 20.140 · Determination of net capital gain or loss
- 20.145 · Credits adopted by reference
- 20.150 · Requirement to file returns electronically
- 20.155 · Electronic filing waivers
- 20.200 · Definitions
- 20.260 · Film production tax credit
- 20.300 · Combination and apportionment
- 20.310 · Unitary business
- 20.320 · Attribution of income
- 20.330 · Water's edge combined reporting method
- 20.335 · Affiliated group
- 20.340 · Worldwide combined reporting
- 20.345 · Water's edge returns
- 20.350 · Intercompany transactions
- 20.355 · Adjustments to intercompany transactions
- 20.360 · Records of intercompany transactions
- 20.375 · Income for the water's edge combined group
- 20.380 · Factors assignable to locations within the United States
- 20.385 · Treatment of foreign dividends and royalties
- 20.390 · Domestic disclosure spreadsheet
- 20.410 · Corporations engaged in oil or gas production or pipeline
- 20.420 · Reporting requirements
- 20.421 · Apportionment of petroleum business income of a taxpayer…
- 20.422 · Transition rule for taxpayers subject to 43.20.144 for…
- 20.430 · Taxable income
- 20.440 · Section 72 business income
- 20.445 · Intangible drilling and development costs
- 20.450 · Federal taxable income
- 20.460 · Attribution of income
- 20.470 · Allocation of general overhead and administrative expense
- 20.480 · Depreciation expense for oil and gas taxpayers
- 20.490 · Apportionment rules for oil and gas taxpayers
- 20.500 · Sales, property and extraction factors
- 20.510 · Records
- 20.520 · Relief
- 20.530 · Gas exploration and development tax credit
- 20.540 · Calculation of tax for taxpayers subject to AS 43.20.144 and…
- 20.550 · 20.550