26 U.S.C. § 958
Rules for determining stock ownership
# (a) Direct and indirect ownership
(1) General rule For purposes of this subpart (other than section 960), stock owned means— (A) stock owned directly, and (B) stock owned with the application of paragraph (2).
(2) Stock ownership through foreign entities For purposes of subparagraph (B) of paragraph (1), stock owned, directly or indirectly, by or for a foreign corporation, foreign partnership, or foreign trust or foreign estate (within the meaning of section 7701(a)(31)) shall be considered as being owned proportionately by its shareholders, partners, or beneficiaries. Stock considered to be owned by a person by reason of the application of the preceding sentence shall, for purposes of applying such sentence, be treated as actually owned by such person.
(3) Special rule for mutual insurance companies For purposes of applying paragraph (1) in the case of a foreign mutual insurance company, the term “stock” shall include any certificate entitling the holder to voting power in the corporation.
# (b) Constructive ownership
For purposes of sections 951(b), 954(d)(3), 956(c)(2), and 957, section 318(a) (relating to constructive ownership of stock) shall apply to the extent that the effect is to treat any United States person as a United States shareholder within the meaning of section 951(b), to treat a person as a related person within the meaning of section 954(d)(3), to treat the stock of a domestic corporation as owned by a United States shareholder of the controlled foreign corporation for purposes of section 956(c)(2), or to treat a foreign corporation as a controlled foreign corporation under section 957, except that— (1) In applying paragraph (1)(A) of section 318(a), stock owned by a nonresident alien individual (other than a foreign trust or foreign estate) shall not be considered as owned by a citizen or by a resident alien individual.
(2) In applying subparagraphs (A), (B), and (C) of section 318(a)(2), if a partnership, estate, trust, or corporation owns, directly or indirectly, more than 50 percent of the total combined voting power of all classes of stock entitled to vote of a corporation, it shall be considered as owning all the stock entitled to vote.
(3) In applying subparagraph (C) of section 318(a)(2), the phrase “10 percent” shall be substituted for the phrase “50 percent” used in subparagraph (C).
(4) Subparagraphs (A), (B), and (C) of section 318(a)(3) shall not be applied so as to consider a United States person as owning stock which is owned by a person who is not a United States person. Paragraphs (1) and (4) shall not apply for purposes of section 956(c)(2) to treat stock of a domestic corporation as not owned by a United States shareholder.
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Cited by 117
- 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 § 1.1248-6 — Sale or exchange of stock in certain domestic corporations.
- 26 CFR § 1.1248-7 — Taxpayer to establish earnings and profits and foreign taxes.
- 26 CFR § 1.1249-1 — Gain from certain sales or exchanges of patents, etc., to foreign corporations.
- 26 CFR § 1.1295-3 — Retroactive elections.
- 26 CFR § 1.1297-2 — Special rules regarding look-through subsidiaries and look-through partnerships.
- 26 CFR § 1.1502-80 — Applicability of other provisions of law.
- 26 CFR § 1.163(j)-1 — Definitions.
Show 48 more
- 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-6 — Coordination of extraordinary disposition and disqualified basis rules.
- 26 CFR § 1.245A-8 — Coordination rules for complex cases.
- 26 CFR § 1.267(a)-3 — Deduction of amounts owed to related foreign persons.
- 26 CFR § 1.267A-2 — Hybrid and branch arrangements.
- 26 CFR § 1.267A-4 — Disqualified imported mismatch amounts.
- 26 CFR § 1.267A-5 — Definitions and special rules.
- 26 CFR § 1.269B-1 — Stapled foreign corporations.
- 26 CFR § 1.338-8 — Asset and stock consistency.
- 26 CFR § 1.367(a)-3 — Treatment of transfers of stock or securities to foreign corporations.
- 26 CFR § 1.367(a)-8 — Gain recognition agreement requirements.
- 26 CFR § 1.367(b)-3 — Repatriation of foreign corporate assets in certain nonrecognition transactions.
- 26 CFR § 1.367(b)-4 — Acquisition of foreign corporate stock or assets by a foreign corporation in certain nonrecognition transactions.
- 26 CFR § 1.385-3 — Certain distributions of debt instruments and similar transactions.
- 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 § 1.6038B-1 — Reporting of certain transfers to foreign corporations.
- 26 CFR § 1.6043-4 — Information returns relating to certain acquisitions of control and changes in capital structure.
- 26 CFR § 1.6655-2 — Annualized income installment method.
- 26 CFR § 1.679-2 — Trusts treated as having a U.S. beneficiary.
- 26 CFR § 1.706-1 — Taxable years of partner and partnership.
- 26 CFR § 1.7701(l)-4 — Rules regarding inversion transactions.
- 26 CFR § 1.861-9T — Allocation and apportionment of interest expense (temporary).
- 26 CFR § 1.864-5 — Foreign source income effectively connected with U.S. business.
- 26 CFR § 1.883-3 — Treatment of controlled foreign corporations.
- 26 CFR § 1.901-2 — Income, war profits, or excess profits tax paid or accrued.
- 26 CFR § 1.934-1 — Limitation on reduction in income tax liability incurred to the Virgin Islands.
- 26 CFR § 1.951-1 — Amounts included in gross income of United States shareholders.
- 26 CFR § 1.951A-1 — General provisions.
- 26 CFR § 1.951A-2 — Tested income and tested loss.
- 26 CFR § 1.951A-3 — Qualified business asset investment.
- 26 CFR § 1.952-1 — Subpart F income defined.
- 26 CFR § 1.954-1 — Foreign base company income.
- 26 CFR § 1.954-2 — Foreign personal holding company income.
- 26 CFR § 1.954-6 — Foreign base company shipping income.
- 26 CFR § 1.955-2 — Amount of a controlled foreign corporation's qualified investments in less developed countries.
- 26 CFR § 1.955-3 — Election as to date of determining qualified investments in less developed countries.
- 26 CFR § 1.955-5 — Definition of less developed country corporation.
- 26 CFR § 1.956-1 — Shareholder's pro rata share of the average of the amounts of United States property held by a controlled foreign corporation.
- 26 CFR § 1.956-2 — Definition of United States property.
- 26 CFR § 1.957-1 — Definition of controlled foreign corporation.
- 26 CFR § 1.957-2 — Controlled foreign corporation deriving income from insurance of United States risks.
- 26 CFR § 1.958-1 — Direct and indirect ownership of stock.
- 26 CFR § 1.958-2 — Constructive ownership of stock.
- 26 CFR § 1.959-1 — Exclusion from gross income of United States persons of previously taxed earnings and profits.
- 26 CFR § 1.959-2 — Exclusion from gross income of controlled foreign corporations of previously taxed earnings and profits.
- 26 CFR § 1.959-3 — Allocation of distributions to earnings and profits of foreign corporations.
- 26 CFR § 1.960-1 — Overview, definitions, and computational rules for determining foreign income taxes deemed paid under section 960(a), (b), and (d).
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