Editor's Note:
Pub. L. 115-97, Sec. 14301(a), struck Sec. 902, effective for taxable years of foreign corporations
beginning after December 31, 2017, and for taxable years of United States shareholders
in which or with which such taxable years of foreign corporations end.
I.R.C. § 902(a) Taxes Paid By Foreign Corporation Treated As Paid By Domestic Corporation —
Editor's Note:
Pub. L. 115-97, Sec. 14301(a), struck Sec. 902, effective for taxable years of foreign corporations
beginning after December 31, 2017, and for taxable years of United States shareholders
in which or with which such taxable years of foreign corporations end.
For purposes of this subpart, a domestic corporation which owns 10 percent or
more of the voting stock of a foreign corporation from which it receives
dividends in any taxable year shall be deemed to have paid the same
proportion of such foreign corporation's post-1986 foreign income taxes as—
I.R.C. § 902(a)(1) —
the amount of such dividends (determined without regard to section 78), bears to
I.R.C. § 902(a)(2) —
such foreign corporation's post-1986 undistributed earnings.
I.R.C. § 902(b) Deemed Taxes Increased In Case Of Certain Lower Tier Corporations —
Editor's Note:
Pub. L. 115-97, Sec. 14301(a), struck Sec. 902, effective for taxable years of foreign corporations
beginning after December 31, 2017, and for taxable years of United States shareholders
in which or with which such taxable years of foreign corporations end.
I.R.C. § 902(b)(1) In General —
If—
I.R.C. § 902(b)(1)(A) —
any foreign corporation is a member of a qualified group, and
I.R.C. § 902(b)(1)(B) —
such foreign corporation owns 10 percent or more of the voting stock of another member
of such group from which it receives dividends in any taxable year,
such foreign corporation shall be deemed to have paid
the same proportion of such other member's post-1986 foreign income taxes as would
be determined under subsection (a) if such foreign corporation were a domestic corporation.
I.R.C. § 902(b)(2) Qualified Group —
For purposes of paragraph (1), the term “qualified group” means—
I.R.C. § 902(b)(2)(A) —
the foreign corporation described in subsection (a), and
I.R.C. § 902(b)(2)(B) —
any other foreign corporation if—
I.R.C. § 902(b)(2)(B)(i) —
the domestic corporation owns at least 5 percent of the voting stock of such other
foreign corporation indirectly through a chain of foreign corporations connected
through stock ownership of at least 10 percent of their voting stock,
I.R.C. § 902(b)(2)(B)(ii) —
the foreign corporation described in subsection (a) is the first tier corporation
in such chain, and
I.R.C. § 902(b)(2)(B)(iii) —
such other corporation is not below the sixth tier in such chain.
The term “qualified group” shall not include any foreign corporation below the third
tier in the chain referred to in clause (i) unless such foreign corporation is a
controlled foreign corporation (as defined in section 957) and the domestic corporation is a United States shareholder (as defined in section
951(b)) in such foreign corporation.
Paragraph (1) shall apply to those taxes paid by a member of the qualified group
below the third tier only with respect to periods during which it was a controlled
foreign corporation.
I.R.C. § 902(c) Definitions And Special Rules —
Editor's Note:
Pub. L. 115-97, Sec. 14301(a), struck Sec. 902, effective for taxable years of foreign corporations
beginning after December 31, 2017, and for taxable years of United States shareholders
in which or with which such taxable years of foreign corporations end.
For purposes of this section—
I.R.C. § 902(c)(1) Post-1986 Undistributed Earnings —
The term “post-1986 undistributed earnings” means the amount of the earnings and
profits of the foreign corporation (computed in accordance with sections 964(a) and 986) accumulated in taxable years beginning after December 31, 1986—
I.R.C. § 902(c)(1)(A) —
as of the close of the taxable year of the foreign corporation in which the dividend
is distributed, and
I.R.C. § 902(c)(1)(B) —
without diminution by reason of dividends distributed during such taxable year.
I.R.C. § 902(c)(2) Post-1986 Foreign Income Taxes —
The term “post-1986 foreign income taxes” means the sum of—
I.R.C. § 902(c)(2)(A) —
the foreign income taxes with respect to the taxable year of the foreign corporation
in which the dividend is distributed, and
I.R.C. § 902(c)(2)(B) —
the foreign income taxes with respect to prior taxable years beginning after December
31, 1986, to the extent such foreign taxes were notattributable
to dividends distributed by the foreign corporation in prior taxable years.
I.R.C. § 902(c)(3) Special Rule Where Foreign Corporation First Qualifies After December 31, 1986
I.R.C. § 902(c)(3)(A) In General —
If the 1st day on which the requirements of subparagraph
(B) are met with respect to any foreign corporation is in a taxable year of such
corporation beginning after December 31, 1986, the post-1986 undistributed earnings
and the post-1986 foreign income taxes of such foreign corporation shall be determined
by taking into account only periods beginning on and after the 1st day of the 1st
taxable year in which such requirements are met.
I.R.C. § 902(c)(3)(B) Ownership Requirements —
The requirements of this subparagraph are met with respect to any foreign corporation
if—
I.R.C. § 902(c)(3)(B)(i) —
10 percent or more of the voting stock of such foreign corporation is owned by a
domestic corporation, or
I.R.C. § 902(c)(3)(B)(ii) —
the requirements of subsection (b)(2) are met with respect to such foreign corporation.
I.R.C. § 902(c)(4) Foreign Income Taxes
I.R.C. § 902(c)(4)(A) In General —
The term “foreign income taxes” means any income, war profits, or excess profits
taxes paid by the foreign corporation to any foreign country or possession of the
United States.
I.R.C. § 902(c)(4)(B) Treatment Of Deemed Taxes —
Except for purposes of determining the amount of the post-1986 foreign income taxes
of a sixth tier foreign corporation referred to in subsection (b)(2), the term “foreign
income taxes"
includes any such taxes deemed to be paid by the foreign corporation under this section.
I.R.C. § 902(c)(5) Accounting Periods —
In the case of a foreign corporation the income, war profits, and excess profits
taxes of which are determined on the basis of an accounting period of less than 1
year, the word “year"
as used in this subsection shall be construed to mean such accounting period.
I.R.C. § 902(c)(6) Treatment Of Distributions From Earnings Before 1987
I.R.C. § 902(c)(6)(A) In General —
In the case of any dividend paid by a foreign corporation out of accumulated profits
(as defined in this section as in effect on the day before the date of the enactment
of the Tax Reform Act of 1986) for taxable years beginning before the 1st taxable
year taken into account in determining the post-1986 undistributed earnings of such
corporation—
I.R.C. § 902(c)(6)(A)(i) —
this section
(as amended by the Tax Reform Act of 1986) shall not apply, but
I.R.C. § 902(c)(6)(A)(ii) —
this section
(as in effect on the day before the date of the enactment of such Act) shall apply.
I.R.C. § 902(c)(6)(B) Dividends Paid First Out Of Post-1986 Earnings —
Any dividend in a taxable year beginning after December 31, 1986, shall be treated
as made out of post-1986 undistributed earnings to the extent thereof.
I.R.C. § 902(c)(7) Constructive Ownership Through Partnerships —
Stock owned, directly or indirectly, by or for a partnership shall be considered
as being owned proportionately by its partners. Stock considered to be owned by a
person by reason of the preceding
sentence shall, for purposes of applying such sentence, be treated as actually owned
by such person. The Secretary may prescribe such
regulations as may be necessary to carry out the purposes of this
paragraph, including rules to account for special partnership allocations of dividends,
credits, and other incidents of ownership of stock
in determining proportionate ownership.
I.R.C. § 902(c)(8) Regulations —
The Secretary shall provide such regulations as may be necessary or appropriate
to carry out the provisions of this section and section 960,
including provisions which provide for the separate application of this section and
section 960 to reflect the separate application of section 904 to separate types of income and loss.
I.R.C. § 902(d) Cross References —
Editor's Note:
Pub. L. 115-97, Sec. 14301(a), struck Sec. 902, effective for taxable years of foreign corporations
beginning after December 31, 2017, and for taxable years of United States shareholders
in which or with which such taxable years of foreign corporations end.
I.R.C. § 902(d)(1) —
For inclusion in gross income of an amount equal to taxes deemed paid under subsection
(a), see section 78.
I.R.C. § 902(d)(2) —
For application of subsections (a) and (b) with respect to taxes deemed paid in a
prior taxable year by a United States shareholder with respect to a controlled foreign
corporation, see section 960.
I.R.C. § 902(d)(3) —
For reduction of credit with respect to dividends paid out of post-1986 undistributed
earnings for years for which certain information is not furnished, see section 6038.
(Aug. 16, 1954, ch. 736, 68A Stat. 286; Sept. 14, 1960,
Pub. L. 86-780, 6(b)(2), 74 Stat. 1016; Oct. 16, 1962, Pub. L. 87-834,
9(a), 76 Stat. 999; Jan. 12, 1971, Pub. L. 91-684, 1, 2, 84 Stat. 2068, 2069; Mar. 29, 1975, Pub. L. 94-12, title VI, 602(c)(6), 89 Stat. 59; Oct. 4, 1976, Pub. L. 94-455, title X, 1033(a), 90 Stat. 1626; Oct. 22, 1986, Pub. L. 99-514, title XII, 1202(a), 100 Stat. 2528; Nov. 10, 1988, Pub. L. 100-647, title I, 1012(b)(1), (2), 102 Stat. 3496; Pub. L. 105-34, title XI, Sec. 1113(a), (c), 1163(a), Aug. 5, 1997, 111 Stat 788; Pub. L. 108-357, title IV, Sec. 405(a), Oct. 22, 2004, 118 Stat. 1418, repealed by Pub. L. 115-97, title I, Sec. 14301(a), Dec. 22, 2017, 131 Stat. 2054.)
BACKGROUND NOTES
AMENDMENTS
2017 -
Sec. 902. Pub. L. 115-97, Sec. 14301(a), struck Sec. 902. Before being struck, it read as follows:
“Sec. 902. Deemed Paid Credit Where Domestic Corporation Owns 10 Percent Or More Of
Voting Stock Of Foreign Corporation
“(a) Taxes Paid By Foreign Corporation Treated As Paid By Domestic Corporation.—For
purposes of this subpart, a domestic corporation which owns 10 percent or more of
the voting stock of a foreign corporation from which it receives dividends in any
taxable year shall be deemed to have paid the same proportion of such foreign corporation's
post-1986 foreign income taxes as—
“(1) the amount of such dividends (determined without regard to section 78), bears
to
“(2) such foreign corporation's post-1986 undistributed earnings.
“(b) Deemed Taxes Increased In Case Of Certain Lower Tier Corporations
“(1) In General.—
If—
“(A) any foreign corporation is a member of a qualified group, and
“(B) such foreign corporation owns 10 percent or more of the voting stock of another
member of such group from which it receives dividends in any taxable year,
“such foreign corporation shall be deemed to have paid the same proportion of such
other member's post-1986 foreign income taxes as would be determined under subsection
(a) if such foreign corporation were a domestic corporation.
“(2) Qualified Group.—For purposes of paragraph (1), the term “qualified group” means—
“(A) the foreign corporation described in subsection (a), and
“(B) any other foreign corporation if—
“(i) the domestic corporation owns at least 5 percent of the voting stock of such
other foreign corporation indirectly through a chain of foreign corporations connected
through stock ownership of at least 10 percent of their voting stock,
“(ii) the foreign corporation described in subsection (a) is the first tier corporation
in such chain, and
“(iii) such other corporation is not below the sixth tier in such chain.
“The term “qualified group” shall not include any foreign corporation below the third
tier in the chain referred to in clause (i) unless such foreign corporation is a controlled
foreign corporation (as defined in section 957) and the domestic corporation is a
United States shareholder (as defined in section 951(b)) in such foreign corporation.
Paragraph (1) shall apply to those taxes paid by a member of the qualified group below
the third tier only with respect to periods during which it was a controlled foreign
corporation.
“(c) Definitions And Special Rules.—For purposes of this section—
“(1) Post-1986 Undistributed Earnings.—The term “post-1986 undistributed earnings”
means the amount of the earnings and profits of the foreign corporation (computed
in accordance with sections 964(a) and 986) accumulated in taxable years beginning
after December 31, 1986—
“(A) as of the close of the taxable year of the foreign corporation in which the
dividend is distributed, and
“(B) without diminution by reason of dividends distributed during such taxable year.
“(2) Post-1986 Foreign Income Taxes.—The term “post-1986 foreign income taxes” means
the sum of—
“(A) the foreign income taxes with respect to the taxable year of the foreign corporation
in which the dividend is distributed, and
“(B) the foreign income taxes with respect to prior taxable years beginning after
December 31, 1986, to the extent such foreign taxes were notattributable to dividends
distributed by the foreign corporation in prior taxable years.
“(3) Special Rule Where Foreign Corporation First Qualifies After December 31, 1986
“(A) In General.—If the 1st day on which the requirements of subparagraph (B) are
met with respect to any foreign corporation is in a taxable year of such corporation
beginning after December 31, 1986, the post-1986 undistributed earnings and the post-1986
foreign income taxes of such foreign corporation shall be determined by taking into
account only periods beginning on and after the 1st day of the 1st taxable year in
which such requirements are met.
“(B) Ownership Requirements.—The requirements of this subparagraph are met with respect
to any foreign corporation if—
“(i) 10 percent or more of the voting stock of such foreign corporation is owned
by a domestic corporation, or
“(ii) the requirements of subsection (b)(2)
are met with respect to such foreign corporation.
“(4) Foreign Income Taxes
“(A) In General.—The term “foreign income taxes” means any income, war profits, or
excess profits taxes paid by the foreign corporation to any foreign country or possession
of the United States.
“(B) Treatment Of Deemed Taxes.—Except for purposes of determining the amount of the
post-1986 foreign income taxes of a sixth tier foreign corporation referred to in
subsection
(b)(2), the term “foreign income taxes” includes any such taxes deemed to be paid
by the foreign corporation under this section.
“(5) Accounting Periods.—In the case of a foreign corporation the income, war profits,
and excess profits taxes of which are determined on the basis of an accounting period
of less than 1 year, the word “year” as used in this subsection shall be construed
to mean such accounting period.
“(6) Treatment Of Distributions From Earnings Before 1987
“(A) In General.—In the case of any dividend paid by a foreign corporation out of
accumulated profits
(as defined in this section as in effect on the day before the date of the enactment
of the Tax Reform Act of 1986) for taxable years beginning before the 1st taxable
year taken into account in determining the post-1986 undistributed earnings of such
corporation—
“(i) this section (as amended by the Tax Reform Act of 1986) shall not apply, but
“(ii) this section (as in effect on the day before the date of the enactment of
such Act) shall apply.
“(B) Dividends Paid First Out Of Post-1986 Earnings.—Any dividend in a taxable year
beginning after December 31, 1986, shall be treated as made out of post-1986 undistributed
earnings to the extent thereof.
“(7) Constructive Ownership Through Partnerships.—Stock owned, directly or indirectly,
by or for a partnership shall be considered as being owned proportionately by its
partners. Stock considered to be owned by a person by reason of the preceding sentence
shall, for purposes of applying such sentence, be treated as actually owned by such
person. The Secretary may prescribe such regulations as may be necessary to carry
out the purposes of this paragraph, including rules to account for special partnership
allocations of dividends, credits, and other incidents of ownership of stock in determining
proportionate ownership.
“(8) Regulations.—The Secretary shall provide such regulations as may be necessary
or appropriate to carry out the provisions of this section and section 960, including
provisions which provide for the separate application of this section and section
960 to reflect the separate application of section 904 to separate types of income
and loss.
“(d) Cross References
“(1) For inclusion in gross income of an amount equal to taxes deemed paid under
subsection (a), see section 78.
“(2) For application of subsections (a)
and (b) with respect to taxes deemed paid in a prior taxable year by a United States
shareholder with respect to a controlled foreign corporation, see section 960.
“(3) For reduction of credit with respect to dividends paid out of post-1986 undistributed
earnings for years for which certain information is not furnished, see section 6038.”
2004 - Subsec. (c)(7)-(8). Pub. L. 108-357, Sec. 405(a), redesignated par. (7) as par. (8) and added par. (8).
1997--Subsec.
(b). Pub. L. 105-34, Sec. 1113(a)(1), amended subparagraph (b). Prior to amendment it read as follows:
“ (b)
Deemed taxes increased in case of certain 2nd and 3rd tier foreign corporations
“(1)
2nd tier
If the foreign corporation described in subsection (a) (hereinafter in this section
referred to as the “1st tier corporation”) owns 10 percent or more of the voting stock
of a 2nd foreign corporation from which it receives dividends in any taxable year,
the 1st tier corporation shall be deemed to have paid the same proportion of such
2nd foreign corporation's post-1986 foreign income taxes as would be determined under
subsection (a) if such 1st tier corporation were a domestic corporation.
“(2)
3rd tier
If such 1st tier corporation owns 10 percent or more of the voting stock of a 2nd
foreign corporation which, in turn, owns 10 percent or more of the voting stock of
a 3rd foreign corporation from which the 2nd corporation receives dividends in any
taxable year, such 2nd foreign corporation shall be deemed to have paid the same proportion
of such 3rd foreign corporation's post-1986 foreign income taxes as would be determined
under subsection
(a) if such 2nd foreign corporation were a domestic corporation.
“(3)5 percent stock requirement
For purposes of this subpart--
“(A)
For 2nd tier
Paragraph (1) shall not apply unless the percentage of voting stock owned by the domestic
corporation in the 1st tier corporation and the percentage of voting stock owned by
the 1st tier corporation in the 2nd foreign corporation when multiplied together equal
at least 5 percent.
“(B)
For 3rd tier
Paragraph (2) shall not apply unless the percentage arrived at for purposes of applying
paragraph
(1) when multiplied by the percentage of voting stock owned by the 2nd foreign corporation
in the 3rd foreign corporation is equal to at least 5 percent”.
Subsec. (c)(2)(B). Pub. L. 105-34, Sec. 1163(a). Struck out “deemed paid with respect to” and inserted “attributable to”.
Subsec. (c)(3). Pub. L. 105-34, Sec. 1113(a)(2)(C). Added “or” at the end of clause (i). Struck out clauses (ii) and (iii). Prior to
being stricken it read as follows:
“(4)(ii)
the requirements of subsection (b)(3)(A) are met with respect to such foreign corporation
and 10 percent or more of the voting stock of such foreign corporation is owned by
another foreign corporation described in clause (i),
“(4)(iii)
the requirements of subsection (b)(3)(B) are met with respect to such foreign corporation
and 10 percent or more of the voting stock of such foreign corporation is owned by
another foreign corporation described in clause (ii).” Inserted new clause (ii).
Subsec. (c)(3). Pub. L. 105-34, Sec. 1113(a)(2)(D). Struck out “ownership” each place it appeared in paragraph (3).
Subsec. (c)(4)(B). Pub. L. 105-34, Sec. 1113(a)(2)(B). Struck out “3rd foreign corporation” and inserted “sixth tier foreign corporation”
of subparagraph (B). Struck out in the heading of paragraph
(3) “where domestic corporation acquires 10 percent of foreign corporation"
and inserted “where foreign corporation first qualifies”.
1988--Subsec.
(c)(1). Pub. L. 100-647, 1012(b)(2), substituted “sections 964(a) and 986” for “sections 964 and 986”.
Subsec. (c)(7). Pub. L. 100-647, 1012(b)(1), substituted
“section 960” for “secton 960” and “this section and section 960"
for second reference to “this section”.
1986--Pub. L. 99-514 amended section generally, substituting “Deemed paid credit where domestic corporation
owns 10 percent or more of voting stock of foreign corporation” for “Credit for corporate
stockholder in foreign corporation” as section catchline and substituting present
provisions generally relating to post-1986 earnings and taxes for former provisions
which had provided in subsec.
(a) for a general rule with respect to treatment of taxes paid by foreign corporations,
in subsec. (b) for treatment of taxes by a foreign subsidiary of first and second
foreign corporations, in subsec. (c)
for rules defining accumulated profits and determining accounting periods, and in
subsec. (d) for cross references.
1976--Pub. L. 94-455, 1033(a), struck out provisions by which dividends from less developed country corporations
are not grossed-up by the amount of foreign taxes paid on the underlying income and
the deemed-paid foreign tax credits attributable to those dividends are reduced proportionately,
struck out subsec. (d) which defined less developed country corporations, and redesignated
subsec. (e)
as (d).
1975--Subsec.
(d). Pub. L. 94-12 substituted “paragraph
(3) or (4)”, “paragraph (3)”, “paragraph (3)(A)”, and “paragraph (3)(B)"
for “section 955(c)(1) or (2)”, “section 955(c)(1)”, “section 955(c)(1)(A)”, and “section
955(c)(1)(B)”, respectively, in existing provisions and added pars. (3), (4), and
(5) and provisions following par. (5).
1971--Subsec.
(b). Pub. L. 91-684, 1, substituted
“Foreign subsidiary of first and second foreign corporation” for “Foreign subsidiary
of foreign corporation” in heading, designated existing provisions as par. (1) and
inserted terminology denominating corporations involved as first foreign corporation
and second foreign corporation, and reduced the ownership percentage requirement in
voting stock from 50 percent to 10 percent between the first and second foreign corporations,
and added pars. (2) and (3).
Subsec. (c)(1)(A). Pub. L. 91-684, 2(1), substituted “(b)(1)(A), and (b)(2)(A)” for “and (b)(1)”.
Subsec. (c)(1)(B). Pub. L. 91-684, 2(2), substituted “(b)(1)(B), and (b)(2)(B)” for “and (b)(2)”.
1962--Subsec.
(a). Pub. L. 87-834 limited provisions which required a domestic corporation owning at least 10 per cent
of the voting stock of a foreign corporation from which it receives dividends in any
taxable year to be deemed to have paid the same proportion of any income, war profits,
or excess profits taxes paid or deemed to be paid by such foreign corporation to any
foreign country or to any possession of the United States which the amount of such
dividends bears to the amount of accumulated profits to those cases where a foreign
corporation paid such dividends out of accumulated profits of a year for which such
foreign corporation is a less developed country corporation, and inserted provisions
requiring, in the case of a domestic corporation which owns at least 10 percent of
the voting stock of a foreign corporation from which it receives dividends in a taxable
year, to the extent such dividends are paid by such foreign corporation out of accumulated
profits of a year for which such foreign corporation is not a less developed country
corporation, to be deemed to have paid the same proportion of any income, war profits,
or excess profits taxes paid or deemed to be paid by such foreign corporation to any
foreign country or to any possession of the United States on or with respect to such
accumulated profits, which the amount of such dividends
(determined without regard to section 78) bears to the amount of such accumulated
profits in excess of such income, war profits, and excess profits taxes (other than
those deemed paid).
Subsec. (b). Pub. L. 87-834 substituted “from which such dividends were paid which--
“(1)
for purposes of applying subsection (a)(1), the amount of such dividends bears to
the amount of the accumulated profits (as defined in subsection
(c)(1)(A)) of such other foreign corporation from which such dividends were paid in
excess of such income, war profits, and excess profits taxes, or
“(2)
for purposes of applying subsection (a)(2), the amount of such dividends bears to
the amount of the accumulated profits (as defined in subsection
(c)(1)(B)) of such other foreign corporation from which such dividends were paid”
for “from which such dividends were paid, which the amount of such dividends bears
to the amount of such accumulated profits”.
Subsec. (c). Pub. L. 87-834 defined “accumulated profits"
for purposes of subsecs. (a)(1) and (b)(1) as meaning the amount of its gains, profits,
or income computed without reduction by the amount of the income, war profits, and
excess profits taxes imposed on or with respect to such profits or income by and foreign
country or any possession of the United States, and limited provisions defining “accumulated
profits” as the amount of its gains, profits, or income in excess of the income, war
profits, and excess profits taxes imposed on or with respect to such profits or income
to subsecs. (a)(2) and (b)(2).
Subsec. (d). Pub. L. 87-834 substituted provisions defining
“less developed country corporation” for provisions which established special rules
for certain wholly-owned foreign corporations.
Subsec. (e). Pub. L. 87-834 designated existing provisions as par. (3) and added pars. (1) and (2).
1960--Subsec.
(e). Pub. L. 86-780 added subsec.
(e).
EFFECTIVE DATE OF REPEAL
Repeal by Pub. L. 115-97, Sec. 14301, effective for taxable years of foreign corporations beginning after
December 31, 2017, and for taxable years of United States shareholders in which or
with which such taxable years of foreign corporations end.
EFFECTIVE DATE OF 2004 AMENDMENTS
Section 405(c) of Pub. L. 108-357 provided that:
“The amendments made by this section shall apply to taxes of foreign corporations
for taxable years of such corporations beginning after the date of the enactment
of this Act [Enacted: Oct. 22, 2004].”
EFFECTIVE DATE OF 1997 AMENDMENT
Section 1113(c)(1) of Pub. L. 105-34 provided that:
“The amendments made by this section shall apply to taxes of foreign corporations
for taxable years of such corporations beginning after the date of enactment of this
Act.”
“Section 1113(c)(2) Pub. L. 105-34 provided that:
“In the case of any chain of foreign corporations described in clauses (i) and (ii)
of section 902(b)(2)(B) of the Internal Revenue Code of 1986 (as amended by this section), no liquidation, reorganization, or similar transaction
in a taxable year beginning after the date of the enactment of this Act shall have
the effect of permitting taxes to be taken into account under section 902 of the Internal Revenue Code of 1986 which could not have been taken into account under such section but for such
transaction [enacted: Aug. 5, 1997]”.
Section 1163(c) of Pub. L. 105-34 provided that:
“The amendment made by this section shall take effect on the date of the enactment
of this Act
[enacted: Aug. 5, 1997]”.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise provided, as if included in the provision of the Tax
Reform Act of 1986, Pub. L. 99-514, to which such amendment relates, see section 1019(a) of Pub. L. 100-647, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Section 1202(e) of Pub. L. 99-514 provided that: “The amendments made by this section [amending sections 902, 960,
and 6038 of this title] shall apply to distributions by foreign corporations out of,
and to inclusions under section 951(a)
of the Internal Revenue Code of 1986 attributable to, earnings and profits for taxable years beginning after December
31, 1986.”
EFFECTIVE DATE OF 1976 AMENDMENT
Section 1033(c) of Pub. L. 94-455, as amended by Pub. L. 99-514, 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “The amendments made by this section
[amending sections 78, 535, 545, 902, and 960 of this title] shall apply--
“(1)
in respect of any distribution received by a domestic corporation after December 31,
1977, and
“(2)
in respect of any distribution received by a domestic corporation before January 1,
1978, in a taxable year of such corporation beginning after December 31, 1975, but
only to the extent that such distribution is made out of the accumulated profits of
a foreign corporation for a taxable year (of such foreign corporation) beginning after
December 31, 1975.
For purposes of paragraph
(2), a distribution made by a foreign corporation out of its profits which are attributable
to a distribution received from a foreign corporation to which section 902(b) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] applies shall be treated as made out of the accumulated profits of a foreign corporation
for a taxable year beginning before January 1, 1976, to the extent that such distribution
was paid out of the accumulated profits of such foreign corporation for a taxable
year beginning before January 1, 1976.”
EFFECTIVE DATE OF 1975 AMENDMENT
Amendment by Pub. L. 94-12 applicable to taxable years of foreign corporations beginning after Dec. 31, 1975,
and to taxable years of United States shareholders (within the meaning of section
951(b) of this title) within which or with which such taxable years of such foreign
corporations end, see section 602(f) of Pub. L. 94-12, set out as an Effective Date note under section 955 of this title.
EFFECTIVE DATE OF 1971 AMENDMENT
Section 3 of Pub. L. 91-684 provided that: “The amendments made by this Act [amending this section] shall apply
with respect to all taxable years of domestic corporations, ending after the date
of enactment of this Act [Jan. 12, 1971], but only in respect of dividends paid by
one corporation to another corporation after the date of the enactment of this Act.”
EFFECTIVE DATE OF 1962 AMENDMENT
Section 9(e) of Pub. L. 87-834 provided that: “The amendments made by this section [enacting section 78 of this
title and amending sections 535, 545, 861, 901, and 902 of this title] shall apply--
“(1)
in respect of any distribution received by a domestic corporation after December 31,
1964, and
“(2)
in respect of any distribution received by a domestic corporation before January 1,
1965, in a taxable year of such corporation beginning after December 31, 1962, but
only to the extent that such distribution is made out of the accumulated profits of
a foreign corporation for a taxable year (of such foreign corporation) beginning after
December 31, 1962.
For purposes of paragraph
(2), a distribution made by a foreign corporation out of its profits which are attributable
to a distribution received from a foreign subsidiary to which section 902(b) applies
shall be treated as made out of the accumulated profits of a foreign corporation for
a taxable year beginning before January 1, 1963, to the extent that such distribution
was paid out of the accumulated profits of such foreign subsidiary for a taxable year
beginning before January 1, 1963.”
EFFECTIVE DATE OF 1960 AMENDMENT
Amendment by Pub. L. 86-780 applicable to taxable years beginning after Dec. 31, 1960, see section 6(c) of Pub. L. 86-780), set out as an Effective Date note under section 6038 of this title.
INCREASE IN EARNINGS AND PROFITS OF FOREIGN CORPORATIONS UNDER SECTION 1023(e)(3)(C)
OF PUB. L. 99-514
Section 1012(b)(3) of Pub. L. 100-647 provided that: “For purposes of sections 902 and 960 of the 1986 Code, the increase
in earnings and profits of any foreign corporation under section 1023(e)(3)(C)
of the Reform Act [Pub. L. 99-514, set out as an Effective Date note under section 846 of this title]
shall be taken into account ratably over the 10-year period beginning with the corporation's
first taxable year beginning after December 31, 1986.”