To be a qualified foreign corporation, a foreign corporation has to meet any of the following conditions to classify its dividend as qualified: a) The company has incorporated in a U.S. possession. b) It is entitled to the benefits of an income tax treaty with the United States. c) The company’s stock is traded on any of the established stock markets in the United States. Refer to the link to Publication 550 on the IRS website for a detailed explanation of qualified foreign corporations - Qualified Foreign Corporation.