‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), any net CFC tested income included in 
gross income under subsection (a) shall be treated in 
the same manner as an amount included under sec-
tion 951(a)(1)(A) for purposes of applying sections 
168(h)(2)(B), 535(b)(10), 851(b), 904(h)(1), 959, 
961, 962, 993(a)(1)(E), 996(f)(1), 1248(b)(1), 
1248(d)(1), 
6501(e)(1)(C), 
6654(d)(2)(D), 
and 
6655(e)(4). 
‘‘(2) EXCEPTION.—The Secretary shall provide 
rules for the application of paragraph (1) to other 
provisions of this title in any case in which the de-
termination of subpart F income is required to be 
made at the level of the controlled foreign corpora-
tion.’’. 
(D) Section 960(d)(2)(A) of such Code is 
amended by striking ‘‘global intangible low- 
taxed income (as defined in section 951A(b))’’ 
and inserting ‘‘net CFC tested income (as de-
fined in section 951A(c))’’. 
(c) DETERMINATION OF NET CFC TESTED INCOME 
ON COUNTRY-BY-COUNTRY BASIS.—Section 951A of such 
Code is amended by adding at the end the following: 
‘‘(g) DETERMINATION MADE ON COUNTRY-BY-COUN-
TRY BASIS.— 
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‘‘(1) IN GENERAL.—This section shall be ap-
plied with respect to a United States shareholder of 
the controlled foreign corporation separately with re-
spect to each foreign country in which the controlled 
foreign corporation conducts any trade or business. 
‘‘(2) SPECIAL RULES.— 
‘‘(A) IN GENERAL.—For purposes of mak-
ing country-by-country determinations under 
this section and sections 904 and 960 with re-
spect to net CFC tested income for a taxable 
year pursuant to paragraph (1)— 
‘‘(i) taxes paid or accrued to a foreign 
country by the controlled foreign corpora-
tion shall be assigned to that country, and 
‘‘(ii) earnings to which such taxes re-
late shall be treated as income assigned to 
the country to which those tax payments 
are made. 
‘‘(B) EARNINGS
ASSIGNED
TO
TWO
OR 
MORE COUNTRIES.—If the same earnings are 
assigned to two or more countries under sub-
paragraph (A), for purposes of paragraph (1) 
such earnings and the taxes related thereto 
shall be treated as assigned to the country with 
the highest statutory corporate tax rate. 
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‘‘(3) EARNINGS
NOT
SUBJECT
TO
TAX.—If 
earnings are not subject to tax by any country, then 
with respect to those earnings paragraph (1) shall 
not apply. 
‘‘(4) REGULATIONS.—The Secretary shall pre-
scribe such regulations as may be necessary or ap-
propriate to carry out this subsection, including the 
time period in which foreign earnings and the associ-
ated foreign taxes are assigned to a country.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to taxable years of 
controlled foreign corporations beginning after December 
31, 2018, and to taxable years of United States share-
holders in which or with which such taxable years of for-
eign corporations end. 
Æ 
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