A

B

C

D

E

F

Totals (add lines A through F)

each.)*

(a) Exclude gross-up (b) Gross-up (sec. 78)

License Fees

of Services

Deductions (INCLUDE Foreign Branch Deductions here and on Schedule F)

9. Definitely Allocable Deductions

Rental, Royalty, and Licensing Expenses

(a) Depreciation,

Depletion, and

Amortization

(b) Other Expenses

(c) Expenses Related to

Gross Income From

Performance of Services

(d) Other Definitely

Allocable Deductions

(e) Total Definitely

Allocable Deductions (add

columns 9(a) through 9(d))

10. Apportioned Share of

Deductions Not Definitely

Allocable (enter amount

from applicable line of

Schedule H, Part II,

column (d))

11. Total Deductions

(add columns 9(e) and 10)

12. Total Income or

(Loss) Before

Adjustments (subtract

column 11 from

column 8)

Totals

For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 10900F Form 1118 (Rev. 12-2004)

(a) Exclude gross-up (b) Gross-up (sec. 78)

A

B

C

D

E

F

* For section 863(b) income, use a single line and enter “863(b).”
4

5

6

7a

b

c

8

9

10

11

Total carryover of foreign taxes (attach schedule showing computation in detail—see page 6 of the instructions)

Total foreign taxes (combine lines 1 through 4)

Enter the amount from the applicable column of Schedule J, Part I, line 11 (see page 6 of instructions). If Schedule J is not required to be completed,

enter the result from the “Totals” line of column 12 of the applicable Schedule A

Total taxable income from all sources (enter taxable income from the corporation’s tax return)

Adjustments to line 7a (see page 6 of instructions)

Subtract line 7b from line 7a

Divide line 6 by line 7c. Enter the resulting fraction as a decimal (see instructions). If line 6 is greater than line 7c, enter 1

Total U.S. income tax against which credit is allowed (regular tax liability (see section 26(b)) minus possessions tax credit determined under section 936 or 30A)

Credit limitation (multiply line 8 by line 9) (see page 6 of instructions)

Separate foreign tax credit (enter the smaller of line 5 or line 10 here and on the appropriate line of Part III)

Part III—Summary of Separate Credits (Enter amounts from Part II, line 11 for each applicable category of income. Do not include taxes on taxable income attributable

to foreign trade income or taxes paid to sanctioned countries.)

Credit for taxes on passive income

Credit for taxes on high withholding tax interest

Credit for taxes on financial services income

Credit for taxes on shipping income

Credit for taxes on dividends from a DISC or former DISC

Credit for taxes on certain distributions from a FSC or former FSC

Credit for taxes on general limitation income

Total (add lines 1 through 8)

Reduction in credit for international boycott operations (see page 6 of instructions)

Total foreign tax credit (subtract line 10 from line 9). Enter here and on the appropriate line of the corporation’s tax return

1

2

3

4

5

6

7

8

9

10

11

Credit for taxes on income re-sourced by treaty (combine all such credits on this line)
Part II—Dividends Paid Out of Pre-1987 Accumulated Profits

1. Name of Foreign

Corporation (identify

DISCs and former

DISCs)

2. Tax Year End

(Yr-Mo) (see

instructions)

3. Country of

Incorporation (enter

country code from

instructions)

4. Accumulated Profits

for Tax Year Indicated

(in functional currency

computed under

section 902) (attach

schedule)

5. Foreign Taxes Paid

and Deemed Paid on

Earnings and Profits

(E&P) for Tax Year

Indicated

(in functional currency)

(see instructions)

6. Dividends Paid 7. Divide

Column 6(a)

by

Column 4

8. Tax Deemed Paid

(see instructions)

Total (Add amounts in column 8b. Enter the result here and include on “Totals” line of Schedule B, Part I, column 3) 

Part III—Deemed Inclusions From Pre-1987 Earnings and Profits

1. Name of Foreign

Corporation (identify

DISCs and former

DISCs)

2. Tax Year End

(Yr-Mo) (see

instructions)

3. Country of

Incorporation (enter

country code from

instructions)

4. E&P for Tax Year Indicated

(in functional currency

translated from U.S. dollars,

computed under section 964)

(attach schedule)

5. Foreign Taxes Paid

and Deemed Paid for

Tax Year Indicated (see

instructions)

6. Deemed Inclusions 7. Divide

Column 6(a)

by

Column 4

8. Tax Deemed Paid

(multiply column 5 by

column 7)

Total (Add amounts in column 8. Enter the result here and include on “Totals” line of Schedule B, Part I, column 3) 

(a) Functional Currency (b) U.S. Dollars

(a) Functional Currency (b) U.S. Dollars

(a) Functional Currency (b) U.S. Dollars
FirstTier Foreign Corporation

instructions)

instructions)

attach schedule)

see instructions)

Column 4

Section A—Dividends Paid Out of Post-1986 Undistributed Earnings (Include the column 10 results in Section A, column 6(b), of Part I above.)

1. Name of Third-Tier Foreign

Corporation and Its Related

Second-Tier Foreign Corporation

Part II—Tax Deemed Paid by Second-Tier Foreign Corporations

Section B—Dividends Paid Out of Pre-1987 Accumulated Profits (Include the column 8(b) results in Section A, column 6(b), of Part I above.)

1. Name of Third-Tier Foreign

Corporation and Its Related

Second-Tier Foreign Corporation

2. Tax Year

End (Yr-Mo)

(see

instructions)

3. Country of

Incorporation (enter

country code from

instructions)

4. Accumulated Profits for

Tax Year Indicated

(in functional currency—

attach schedule)

5. Foreign Taxes Paid and Deemed

Paid for Tax Year Indicated (in

functional currency—see

instructions)

6. Dividends Paid (in functional currency) 7. Divide

Column

6(a) by

Column 4

8. Tax Deemed Paid (see instructions)

(a) In Functional

Currency of Third-tier

Corporation

(b) U.S. Dollars

6. Foreign Taxes Paid and Deemed

Paid for Tax Year Indicated 7. Post-1986

Foreign

Income Taxes

(add columns

5, 6(a), and

6(b))

8. Dividends Paid (in functional

currency) 9. Divide

Column

8(a) by

Column 4

10. Tax Deemed

Paid (multiply

column 7 by

(a) Taxes Paid column 9)

(b) Taxes Deemed

Paid (from

Schedule E, Part I,

column 10)

(a) of Third-tier

Corporation

(b) of Second-tier

Corporation

(b) of Second-tier

Corporation

(a) of Third-tier

Corporation

CorporationCorporation

3. Country of

Incorporation (enter

country code from

instructions)

4. Post-1986

Undistributed Earnings

(in functional

currency—attach

schedule)

5. Opening

Balance in

Post-1986 Foreign

Income Taxes

2. Tax Year

End (Yr-Mo)

(see

instructions)

Corporation

() 
p

Fourth-Tier Foreign Corporation

country code from

instructions)

Part III—Tax Deemed Paid by Fifth-Tier Foreign Corporations (Include the column 10 results in column 6(b) of Part II above.)

1. Name of Sixth-Tier Foreign

Corporation and Its Related

Fifth-Tier Foreign Corporation

3. Country of

Incorporation (enter

country code from

instructions)

6. Foreign Taxes

Paid For Tax Year

Indicated

Foreign Income

Taxes

(

currency—attach

schedule)

5. Opening

Balance in

Post-1986

Foreign Income

Taxes

4. Post-1986

Undistributed Earnings

(in functional

currency—attach

schedule)

()

(see

instructions)

2. Tax Year

End

(Yr-Mo)

(see

instructions)

8(a) by

Column 4

column 7 by

column 9)

(a) Of

Fifth-tier

CFC

(b) Of

Fourth-tier

CFC

8. Dividends Paid (in

functional currency) 9. Divide

Column

8(a) by

Column 4

10. Tax Deemed

Paid (multiply

column 7 by

column 9)

(a) Of

Sixth-tier

CFC

(b) Of

Fifth-tier

CFC

(

columns 5, 6(a),

and 6(b))

7. Post-1986

Foreign Income

Taxes (add

columns 5 and 6)

(a) Taxes Paid (b) Taxes Deemed

Paid (from Part III,

column 10)
B, Part II, line 3



* Note: The Schedule F totals are not carried over to any other Form 1118 Schedule. (These totals were already included in

Schedule A.) However, the IRS requires the corporation to complete Schedule F under the authority of section 905(b).

Totals (add lines A through F)*


b

c

d

e

g

h

4

Passive income

High withholding tax interest

Financial services income

Shipping income

Taxable income attributable to 

foreign trade income

Total foreign (add lines 3a through 3h)

Section 901(j) income*

Income re-sourced by treaty*

f

*Important: See Computer-Generated Schedule H in instructions.
3

a

b

c

d

e

f

g

h

i

j

4

Apportionment among statutory groupings:

General limitation income

Passive income

High withholding tax interest

Financial services income

Shipping income

Taxable income attributable to foreign trade income

Certain distributions from a FSC or former FSC

Dividends from a DISC or former DISC

Total foreign (add lines 3a through 3j)

* Important: See Computer-Generated Schedule H in instructions.

Section 901(j) income*

Income re-sourced by treaty*

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