26 U.S.C. § 951
Amounts included in gross income of United States shareholders
# (a) Amounts included
(1) In general If a foreign corporation is a controlled foreign corporation at any time during a taxable year of the foreign corporation (in this subsection referred to as the “CFC year”)— (A) each United States shareholder which owns (within the meaning of section 958(a)) stock in such corporation on any day during the CFC year shall include in gross income such shareholder’s pro rata share (determined under paragraph (2)) of the corporation’s subpart F income for the CFC year, and (B) each United States shareholder which owns (within the meaning of section 958(a)) stock in such corporation on the last day, in the CFC year, on which such corporation is a controlled foreign corporation shall include in gross income the amount determined under section 956 with respect to such shareholder for the CFC year (but only to the extent not excluded from gross income under section 959(a)(2)).
(2) Pro rata share of subpart F income A United States shareholder’s pro rata share of a controlled foreign corporation’s subpart F income for a CFC year shall be the portion of such income which is attributable to— (A) the stock of such corporation owned (within the meaning of section 958(a)) by such shareholder, and (B) any period of the CFC year during which— (i) such shareholder owned (within the meaning of section 958(a)) such stock, (ii) such shareholder was a United States shareholder of such corporation, and (iii) such corporation was a controlled foreign corporation.
(3) Taxable year of inclusion Any amount required to be included in gross income by a United States shareholder under paragraph (1) with respect to a CFC year shall be included in gross income for the shareholder’s taxable year which includes the last day on which the shareholder owns (within the meaning of section 958(a)) stock in the controlled foreign corporation during such CFC year.
(4) Regulatory authority The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance allowing taxpayers to elect, or requiring taxpayers, to close the taxable year of a controlled foreign corporation upon a direct or indirect disposition of stock of such corporation.
# (b) United States shareholder defined
For purposes of this title, the term “United States shareholder” means, with respect to any foreign corporation, a United States person (as defined in section 957(c)) who owns (within the meaning of section 958(a)), or is considered as owning by applying the rules of ownership of section 958(b), 10 percent or more of the total combined voting power of all classes of stock entitled to vote of such foreign corporation, or 10 percent or more of the total value of shares of all classes of stock of such foreign corporation.
# (c) Coordination with passive foreign investment company provisions
If, but for this subsection, an amount would be included in the gross income of a United States shareholder for any taxable year both under subsection (a)(1)(A)(i) and under section 1293 (relating to current taxation of income from certain passive foreign investment companies), such amount shall be included in the gross income of such shareholder only under subsection (a)(1)(A).
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Cited by 206
- 26 CFR § 1.1081-11 — Records to be kept and information to be filed with returns.
- 26 CFR § 1.1248-1 — Treatment of gain from certain sales or exchanges of stock in certain foreign corporations.
- 26 CFR § 1.1248-2 — Earnings and profits attributable to a block of stock in simple cases.
- 26 CFR § 1.1248-3 — Earnings and profits attributable to stock in complex cases.
- 26 CFR § 1.1248-4 — Limitation on tax applicable to individuals.
- 26 CFR § 1.1248-5 — Stock ownership requirements for less developed country corporations.
- 26 CFR § 1.1248-7 — Taxpayer to establish earnings and profits and foreign taxes.
- 26 CFR § 1.1291-9 — Deemed dividend election.
- 26 CFR § 1.1294-1T — Election to extend the time for payment of tax on undistributed earnings of a qualified electing fund (temporary).
- 26 CFR § 1.1296-1 — Mark to market election for marketable stock.
- 26 CFR § 1.1297-3 — Deemed sale or deemed dividend election by a U.S. person that is a shareholder of a section 1297(e) PFIC.
- 26 CFR § 1.1298-3 — Deemed sale or deemed dividend election by a U.S. person that is a shareholder of a former PFIC.
Show 48 more
- 26 CFR § 1.1411-1 — General rules.
- 26 CFR § 1.1411-10 — Controlled foreign corporations and passive foreign investment companies.
- 26 CFR § 1.1502-13 — Intercompany transactions.
- 26 CFR § 1.1502-32 — Investment adjustments.
- 26 CFR § 1.1502-80 — Applicability of other provisions of law.
- 26 CFR § 1.163(j)-1 — Definitions.
- 26 CFR § 1.163(j)-4 — General rules applicable to C corporations (including REITs, RICs, and members of consolidated groups) and tax-exempt corporations.
- 26 CFR § 1.163(j)-7 — Application of the section 163(j) limitation to foreign corporations and United States shareholders.
- 26 CFR § 1.163-12 — Deduction of original issue discount on instrument held by related foreign person.
- 26 CFR § 1.163-5 — Denial of interest deduction on certain obligations issued after December 31, 1982, unless issued in registered form.
- 26 CFR § 1.245A(d)-1 — Disallowance of foreign tax credit or deduction.
- 26 CFR § 1.245A(e)-1 — Special rules for hybrid dividends.
- 26 CFR § 1.245A-5 — Limitation of section 245A deduction and section 954(c)(6) exception.
- 26 CFR § 1.245A-8 — Coordination rules for complex cases.
- 26 CFR § 1.250(b)-1 — Computation of foreign-derived intangible income (FDII).
- 26 CFR § 1.267(a)-3 — Deduction of amounts owed to related foreign persons.
- 26 CFR § 1.267A-3 — Income inclusions and amounts not treated as disqualified hybrid amounts.
- 26 CFR § 1.267A-4 — Disqualified imported mismatch amounts.
- 26 CFR § 1.267A-5 — Definitions and special rules.
- 26 CFR § 1.302-2 — Redemptions not taxable as dividends.
- 26 CFR § 1.302-4 — Termination of shareholder's interest.
- 26 CFR § 1.331-1 — Corporate liquidations.
- 26 CFR § 1.332-6 — Records to be kept and information to be filed with return.
- 26 CFR § 1.334-1 — Basis of property received in liquidations.
- 26 CFR § 1.338-2 — Nomenclature and definitions; mechanics of the section 338 election.
- 26 CFR § 1.338-4 — Aggregate deemed sale price; various aspects of taxation of the deemed asset sale.
- 26 CFR § 1.338-8 — Asset and stock consistency.
- 26 CFR § 1.338-9 — International aspects of section 338.
- 26 CFR § 1.351-3 — Records to be kept and information to be filed.
- 26 CFR § 1.355-5 — Records to be kept and information to be filed.
- 26 CFR § 1.362-3 — Basis of importation property acquired in loss importation transaction.
- 26 CFR § 1.367(a)-3 — Treatment of transfers of stock or securities to foreign corporations.
- 26 CFR § 1.367(b)-10 — Acquisition of parent stock or securities for property in triangular reorganizations.
- 26 CFR § 1.367(b)-2 — Definitions and special rules.
- 26 CFR § 1.367(b)-3 — Repatriation of foreign corporate assets in certain nonrecognition transactions.
- 26 CFR § 1.367(b)-7 — Carryover of earnings and profits and foreign income taxes in certain foreign-to-foreign nonrecognition transactions.
- 26 CFR § 1.368-3 — Records to be kept and information to be filed with returns.
- 26 CFR § 1.381(b)-1 — Operating rules applicable to carryovers in certain corporate acquisitions.
- 26 CFR § 1.382-8 — Controlled groups.
- 26 CFR § 1.385-3 — Certain distributions of debt instruments and similar transactions.
- 26 CFR § 1.441-2 — Election of taxable year consisting of 52-53 weeks.
- 26 CFR § 1.451-3 — Timing of income inclusion for taxpayers with an applicable financial statement using an accrual method of accounting.
- 26 CFR § 1.512(b)-1 — Modifications.
- 26 CFR § 1.542-2 — Gross income requirement.
- 26 CFR § 1.6011-4 — Requirement of statement disclosing participation in certain transactions by taxpayers.
- 26 CFR § 1.6038-5 — Information returns required of certain United States persons to report amounts determined with respect to certain foreign corporations for global intangible low-taxed income (GILTI) purposes.
- 26 CFR § 1.6655-2 — Annualized income installment method.
- 26 CFR § 1.701-2 — Anti-abuse rule.
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