26 USC 965 - Treatment of deferred foreign income upon transition to participation exemption system of taxation

1 See References in Text note below.

(with respect to a surrogate foreign corporation which first becomes a surrogate foreign corporation during such period), then—

2 So in original.

under section 78.

Editorial Notes

References in Text

The date of the enactment of the Tax Cuts and Jobs Act, referred to in subsec. (l)(1), probably means the date of the enactment of title I of Puspan. L. 115–97, which was approved Dec. 22, 2017. Prior versions of the bill that was enacted into law as Puspan. L. 115–97 included such Short Title, but it was not enacted as part of title I of Puspan. L. 115–97.

Amendments

2017—Puspan. L. 115–97 amended section generally. Prior to amendment, section related to temporary dividends received deduction.

2005—Subsec. (a)(2)(B). Puspan. L. 109–135, § 403(q)(1), inserted “from another controlled foreign corporation in such chain of ownership” before “, but only to the extent”.

Subsec. (span)(2)(A). Puspan. L. 109–135, § 403(q)(2), inserted “cash” before “dividends”.

Subsec. (span)(3). Puspan. L. 109–135, § 403(q)(3), inserted at end “The Secretary may prescribe such regulations as may be necessary or appropriate to prevent the avoidance of the purposes of this paragraph, including regulations which provide that cash dividends shall not be taken into account under subsection (a) to the extent such dividends are attributable to the direct or indirect transfer (including through the use of intervening entities or capital contributions) of cash or other property from a related person (as so defined) to a controlled foreign corporation.”

Subsec. (c)(1). Puspan. L. 109–135, § 403(q)(4), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The term ‘applicable financial statement’ means, with respect to a United States shareholder, the most recently audited financial statement (including notes and other documents which accompany such statement) which includes such shareholder—

“(A) which is certified on or before June 30, 2003, as being prepared in accordance with generally accepted accounting principles, and

“(B) which is used for the purposes of a statement or report—

“(i) to creditors,

“(ii) to shareholders, or

“(iii) for any other substantial nontax purpose.

In the case of a corporation required to file a financial statement with the Securities and Exchange Commission, such term means the most recent such statement filed on or before June 30, 2003.”

Subsec. (d)(2). Puspan. L. 109–135, § 403(q)(5), substituted “directly allocable” for “properly allocated and apportioned”.

Subsec. (d)(4). Puspan. L. 109–135, § 403(q)(6), added par. (4).

Subsec. (e)(1). Puspan. L. 109–135, § 403(q)(7), inserted “which are imposed by foreign countries and possessions of the United States and are” after “taxes” in concluding provisions.

Subsec. (f). Puspan. L. 109–135, § 403(q)(8), inserted “on or” before “before the due date” in concluding provisions.

Statutory Notes and Related Subsidiaries

Effective Date of 2005 Amendment

Amendments by Puspan. L. 109–135 effective as if included in the provisions of the American Jobs Creation Act of 2004, Puspan. L. 108–357, to which they relate, see section 403(nn) of Puspan. L. 109–135, set out as a note under section 26 of this title.

Effective Date

Section applicable to taxable years ending on or after Oct. 22, 2004, see section 422(d) of Puspan. L. 108–357, set out as an Effective Date of 2004 Amendments note under section 56 of this title.