Source: https://www.law.cornell.edu/uscode/text/26/902?quicktabs_8=0
Timestamp: 2016-02-12 00:53:58
Document Index: 407436841

Matched Legal Cases: ['§ 902', '§\u202f6', '§\u202f9', '§\u202f1', '§\u202f602', '§\u202f1033', '§\u202f1202', '§\u202f1012', '§\u202f1113', '§\u202f405', '§\u202f1113', '§\u202f1163', '§\u202f1113', '§\u202f1113', '§\u202f1113', '§\u202f1113', '§\u202f1012', '§\u202f1012', '§\u202f1033', '§\u202f1', '§\u202f2', '§\u202f2', '§\u202f1113', '§\u202f1163', '§\u202f1202', '§\u202f1033', '§\u202f2', '§\u202f3', '§\u202f9', '§\u202f1012']

26 U.S. Code § 902 - Deemed paid credit where domestic corporation owns 10 percent or more of voting stock of foreign corporation | US Law | LII / Legal Information Institute
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 corporationFor 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—
(2) Qualified groupFor purposes of paragraph (1), the term “qualified group” means—
(1) Post-1986 undistributed earningsThe 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—
(2) Post-1986 foreign income taxesThe term “post-1986 foreign income taxes” means the sum of—
(B) Ownership requirementsThe requirements of this subparagraph are met with respect to any foreign corporation if—
(A) In generalIn 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—
(Aug. 16, 1954, ch. 736, 68A Stat. 286; Pub. L. 86–780, § 6(b)(2), Sept. 14, 1960, 74 Stat. 1016; Pub. L. 87–834, § 9(a), Oct. 16, 1962, 76 Stat. 999; Pub. L. 91–684, §§ 1, 2, Jan. 12, 1971, 84 Stat. 2068, 2069; Pub. L. 94–12, title VI, § 602(c)(6), Mar. 29, 1975, 89 Stat. 59; Pub. L. 94–455, title X, § 1033(a), Oct. 4, 1976, 90 Stat. 1626; Pub. L. 99–514, title XII, § 1202(a), Oct. 22, 1986, 100 Stat. 2528; Pub. L. 100–647, title I, § 1012(b)(1), (2), Nov. 10, 1988, 102 Stat. 3496; Pub. L. 105–34, title XI, §§ 1113(a), 1163(a), Aug. 5, 1997, 111 Stat. 970, 987; Pub. L. 108–357, title IV, § 405(a), Oct. 22, 2004, 118 Stat. 1498.)
1997—Subsec. (b). Pub. L. 105–34, § 1113(a)(1), amended subsec. (b) generally. Prior to amendment, subsec. (b) consisted of pars. (1) to (3) relating to deemed taxes increased in case of certain 2nd and 3rd tier foreign corporations.
Subsec. (c)(2)(B). Pub. L. 105–34, § 1163(a), substituted “attributable to” for “deemed paid with respect to”.
Subsec. (c)(3). Pub. L. 105–34, § 1113(a)(2)(C), substituted “where foreign corporation first qualifies” for “where domestic corporation acquires 10 percent of foreign corporation” in heading.
Pub. L. 105–34, § 1113(a)(2)(D), struck out “ownership” after “on which the” and “in which such” in subpar. (A) and before “requirements of this subparagraph” in introductory provisions of subpar. (B).
Subsec. (c)(3)(B). Pub. L. 105–34, § 1113(a)(2)(A), inserted “or” at end of cl. (i), added cl. (ii), and struck out former cls. (ii) and (iii) which read as follows:
Subsec. (c)(4)(B). Pub. L. 105–34, § 1113(a)(2)(B), substituted “sixth tier foreign corporation” for “3rd foreign corporation”.
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”.
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).
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)”.
Pub. L. 105–34, title XI, § 1113(c), Aug. 5, 1997, 111 Stat. 971, provided that:
The amendments made by this section [amending this section and section 960 of this title] shall apply to taxes of foreign corporations for taxable years of such corporations beginning after the date of enactment of this Act [Aug. 5, 1997].
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.”
Pub. L. 105–34, title XI, § 1163(c), Aug. 5, 1997, 111 Stat. 987, provided that: “The amendments made by this section [amending this section and section 904 of this title] shall take effect on the date of the enactment of this Act [Aug. 5, 1997].”
Pub. L. 99–514, title XII, § 1202(e), Oct. 22, 1986, 100 Stat. 2531, provided that: “The amendments made by this section [amending this section and sections 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.”
Pub. L. 94–455, title X, § 1033(c), Oct. 4, 1976, 90 Stat. 1628, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “The amendments made by this section [amending this section and sections 78, 535, 545, and 960 of this title] shall apply—
in respect of any distribution received by a domestic corporation after December 31, 1977, and
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.
Pub. L. 91–684, § 3, Jan. 12, 1971, 84 Stat. 2069, 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.”
Pub. L. 87–834, § 9(e), Oct. 16, 1962, 76 Stat. 1001, provided that: “The amendments made by this section [enacting section 78 of this title and amending this section and sections 535, 545, 861, and 901 of this title] shall apply—
in respect of any distribution received by a domestic corporation after December 31, 1964, and
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.
Pub. L. 100–647, title I, § 1012(b)(3), Nov. 10, 1988, 102 Stat. 3496, 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.”