SCHEDULE H Deductions Allocated To Effectively Connected OMB No. 1545-0126

(Form 1120-F) Income Under Regulations Section 1.861-8

Department of the Treasury © Attach to Form 1120-F.

Internal Revenue Service

Name of corporation Employer identification number

Home Office Deductible Expenses Definitely Related Solely to ECI or Non-ECI

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 1120-F. Cat. No. 49679V Schedule H (Form 1120-F) 2008

Part I

© See separate instructions.

1

2

3

4

5

6

7

8

Adjustments for U.S. tax principles (attach schedule - see instructions) 

9

Total deductible expenses on the books of the home office. Combine lines 1 and 2 

10

Interest expense included in line 3 

Bad debt expense included in line 3 

11

12

13

Total expenses on the books of the home office 

Remaining deductible expenses to be allocated and apportioned between ECI and non-ECI.

Subtract line 6 from line 3 

15

Deductible expenses definitely related solely to other non-ECI booked in the

home country 

Deductible expenses definitely related solely to non-ECI from subsidiaries

Deductible expenses definitely related solely to ECI 

Total of interest expense and bad debt expense. Add lines 4 and 5 

14 Average exchange rate used to convert amounts to U.S. dollars (see instructions)

Remaining home office deductible expenses on line 15 allocated and apportioned under Regulations

section 1.861-8 to ECI (attach computation) 

Total deductible expenses definitely related solely to ECI or non-ECI. Add lines 8 through 11

Remaining deductible expenses on the books of the home office not definitely related solely to ECI

or non-ECI. Subtract line 12 from line 7

Deductible expenses definitely related solely to other non-ECI booked in

other countries (including the United States) 

Part II Home Office Deductible Expenses Allocated and Apportioned to ECI

16

17

20

Enter the amount from line 11. If line 11 is stated in functional currency, divide line 11 by line 14

Total deductible expenses from other non-U.S. locations allocated and apportioned to ECI 

Total deductible expenses allocated and apportioned to ECI. Add lines 18 and 19 and enter the

amount here and on Form 1120-F, Section II, line 26

b

21 Gross income ratio:

Average U.S. assets from Schedule I, line 5, column (d)

Part III Allocation and Apportionment Methods and Financial Records Used to Complete Parts I and II

22

23 Number of personnel ratio:

Enter the amount from line 13. If line 13 is stated in functional currency, divide line 13 by line 14 

24 Did the corporation use any ratio-based methods (other than those indicated on lines 21 through 23 above)

in Parts I and II? If “Yes,” attach schedule (see instructions)

19

Total home office deductible expenses allocated and apportioned to ECI. Add lines 16 and 17 

Note. Enter all amounts on lines 1 through 13 in only U.S. dollars or in only functional currency. If U.S. dollars, check box . 

Otherwise, specify currency ©

1

2

3

4

5

6

7

8

9

10

11

12

13

16

15

17

18

20

19

Note. Enter the amounts in Part III, lines 21a, 21b, 22a, and 22b in U.S. dollars.

a

c

Gross ECI

Worldwide gross income

Divide line 21a by line 21b 

Gross asset ratio:

Worldwide assets (if applicable, from Schedule I, line 6b) 

Divide line 22a by line 22b 

a

b

c

a

b

c

Personnel of U.S. trade or business 

Worldwide personnel

Divide line 23a by line 23b 

21c

21b

21a

22c

22b

22a

23c

23b

23a

Did the corporation use any other methods (e.g., time-spent analysis or estimates) in Parts I and II?

If “Yes,” attach schedule (see instructions)

25

%

%

%

Note. Enter the amounts on lines 15 through 20 in U.S. dollars.

● If one or more methods used are different than in prior year, check box

● If any amount on line 20 is recorded as an interbranch amount on books and records used to prepare Form 1120-F, Schedule 

L, include the amount on Part IV, line 35 and check this box

2008

18

14

Yes No
Total expenses per books and records used to prepare Form 1120-F,

Schedule L 

Schedule H (Form 1120-F) 2008 Page 2

Schedule H (Form 1120-F) 2008

Allocation and Apportionment Methods and Financial Records Used to Complete 

Parts I and II (continued)

Part III

26a Published or other non-public audited financial statements 

No

b

27

Non-audited financial statements 

Home office management or other departmental cost accounting reports 

Yes

Note: Indicate whether the corporation used any of the following financial and other records in Parts I

and II to identify deductible expenses allocated and apportioned to ECI.

Other (e.g., home country regulatory reports) (attach schedule) 

29

Part IV Allocation and Apportionment of Expenses on Books and Records Used to Prepare Form 1120-F, Schedule L

b

32a Third-party interest expense included in line 31 

Interbranch interest expense included in line 31 

33 Bad debt expense included in line 31 

35

34 Other third-party deductible expenses not allocated or apportioned to ECI

and non-ECI under Regulations section 1.861-8 included in line 31 (attach

schedule) 

Interbranch expenses per books and records included in line 31 and not

included on line 32b (attach schedule) 

37 Deductible expenses on books and records allocated and apportioned to ECI or non-ECI under

Regulations section 1.861-8. Subtract line 36 from line 31 

38a Derivative transaction deductible expenses definitely related to ECI

or non-ECI under Regulations section 1.861-8 (from line 37) 

Reconciliation of allocation and apportionment of deductible

expenses to ECI and non-ECI on books and records under

Regulations section 1.861-8 (from line 37)

39

b Other deductible expenses definitely related to ECI or non-ECI

(from line 37) 

Total deductible expenses definitely related to ECI or non-ECI.

Add lines 38a and 38b 

40 Other deductible expenses on books and records not definitely

related to ECI or non-ECI allocated and apportioned to ECI and

non-ECI (from line 37) 

41 Total deductible expenses on books and records allocated and

apportioned to ECI and non-ECI. Add lines 39 and 40. Column

(c) must equal line 37

(b)

Non-ECI Amounts

(a)

ECI Amounts

(c)

Total: Add columns

(a) and (b)

Note. Enter all amounts in Part IV in U.S. dollars.

36 Add lines 32a through 35 

29

31

32b

35

33

37

36

32a

38a

39

40

41

38b

28

30 Adjustments for U.S. tax principles (attach schedule – see instructions) 

31 Total deductible expenses. Combine lines 29 and 30 

30

34

Note. Line 41, column (a) is the total of the deductions reported on Form 1120-F, Section II, lines 12, 13, 14, 16, 17, 19, 20, 

21, 22, 23, 24, 25, and 27.