26 USC 882 - Tax on income of foreign corporations connected with United States business

1 So in original. The comma probably should not appear.

on its taxable income which is effectively connected with the conduct of a trade or business within the United States.

2 Par. (3) heading editorially supplied.

]

Editorial Notes

Amendments

2022—Subsec. (a)(1). Puspan. L. 117–169 inserted “, 55,” after “section 11”.

2017—Subsec. (a)(1). Puspan. L. 115–97, § 14401(d)(2), which directed insertion of “or 59A,” after “section 11,”, was executed by making the insertion after “section 11” to reflect the probable intent of Congress and the amendment by Puspan. L. 115–97, § 12001(span)(14). See below.

Puspan. L. 115–97, § 13001(span)(2)(L), struck out “or 1201(a)” before “on its taxable income”.

Puspan. L. 115–97, § 12001(span)(14), struck out “, 55,” after “section 11”.

2014—Subsec. (a)(1). Puspan. L. 113–295 struck out “, 59A” after “section 11, 55”.

1988—Subsec. (a)(1). Puspan. L. 100–647, § 2001(c)(2), inserted reference to section 59A.

Subsec. (span). Puspan. L. 100–647, § 1012(s)(2)(B), inserted “, except where the context clearly indicates otherwise” after “foreign corporation”.

Subsec. (e). Puspan. L. 100–647, § 6133(a), substituted “interest on obligations of the United States which is not portfolio interest (as defined in section 881(c)(2))” for “interest on obligations of the United States”, and struck out at end “The preceding sentence shall not apply to any Guam corporation which is treated as not being a foreign corporation by section 881(span)(1) for the taxable year.”

1986—Subsec. (a)(1). Puspan. L. 99–514, § 701(e)(4)(F), inserted reference to section 55.

Subsec. (e). Puspan. L. 99–514, § 1236(a), inserted “The preceding sentence shall not apply to any Guam corporation which is treated as not being a foreign corporation by section 881(span)(1) for the taxable year.”

1984—Subsec. (c)(2). Puspan. L. 98–369 substituted reference to section “33” for “32” and “34” for “39”.

1983—Subsec. (c)(2). Puspan. L. 97–424 struck out “and lubricating oil” after “gasoline”.

1980—Subsec. (a)(3). Puspan. L. 96–499 added par. (3).

1978—Subsec. (a). Puspan. L. 95–600 substituted in subsec. (a) heading “Imposition of tax” for “Normal tax and surtax” and in par. (1) heading “In general” for “Imposition of tax”.

1976—Subsecs. (c)(1)(A), (2), (d). Puspan. L. 94–455 struck out “or his delegate” after “Secretary”.

1966—Puspan. L. 89–809 substantially revised the income tax treatment of foreign corporations, introduced the concept of taxable income effectively connected with the conduct of a trade or business within the United States into provisions dealing with the imposition of tax, substituted a concept of gross income that included gross income derived from sources within the United States not effectively connected with the conduct of a trade or business within the United States and gross income effectively connected with the conduct of a trade or business within the United States for a concept of gross income that included only gross income from sources within the United States, and inserted provisions for an election to treat real property income as income connected with United States business, treatment of interest on United States obligations received by banks organized in possessions, and the returns of tax by agents, and inserted cross reference to section 906(span)(1).

Statutory Notes and Related Subsidiaries

Effective Date of 2022 Amendment

Amendment by Puspan. L. 117–169 applicable to taxable years beginning after Dec. 31, 2022, see section 10101(f) of Puspan. L. 117–169, set out as a note under section 11 of this title.

Effective Date of 2017 Amendment

Amendment by section 12001(span)(14) of Puspan. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 12001(c) of Puspan. L. 115–97, set out as a note under section 11 of this title.

Amendment by section 13001(span)(2)(L) of Puspan. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 13001(c)(1) of Puspan. L. 115–97, set out as a note under section 11 of this title.

Amendment by section 14401(d)(2) of Puspan. L. 115–97 applicable to base erosion payments (as defined in section 59A(d) of this title) paid or accrued in taxable years beginning after Dec. 31, 2017, see section 14401(e) of Puspan. L. 115–97, set out as a note under section 26 of this title.

Effective Date of 2014 Amendment

Amendment by Puspan. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(span) of Puspan. L. 113–295, set out as a note under section 1 of this title.

Effective Date of 1988 Amendment

Amendment by section 701(e)(4)(F) of Puspan. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Puspan. L. 99–514, to which such amendment relates, see section 1019(a) of Puspan. L. 100–647, set out as a note under section 1 of this title.

Amendment by Puspan. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Superfund Revenue Act of 1986, Puspan. L. 99–499, title V, to which it relates, see section 2001(e) of Puspan. L. 100–647, set out as a note under section 56 of this title.

Puspan. L. 100–647, title VI, § 6133(c), Nov. 10, 1988, 102 Stat. 3721, provided that:

“The amendments made by this subsection [probably means ‘this section’, which amended sections 882 and 884 of this title] shall apply to taxable years beginning after December 31, 1988.”

Effective Date of 1986 Amendment

Amendment by section 701(e)(4)(F) of Puspan. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, with certain exceptions and qualifications, see section 701(f) of Puspan. L. 99–514, set out as an Effective Date note under section 55 of this title.

Puspan. L. 99–514, title XII, § 1236(span), Oct. 22, 1986, 100 Stat. 2576, provided that:

“The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after November 16, 1985.”

Effective Date of 1984 Amendment

Amendment by Puspan. L. 98–369 applicable to taxable years beginning after Dec. 31, 1983, and to carrybacks from such years, see section 475(a) of Puspan. L. 98–369, set out as a note under section 21 of this title.

Effective Date of 1983 Amendment

Amendment by Puspan. L. 97–424 applicable with respect to articles sold after Jan. 6, 1983, see section 515(c) of Puspan. L. 97–424, set out as a note under section 34 of this title.

Effective Date of 1980 Amendment

Amendment by Puspan. L. 96–499 applicable to disposition after June 18, 1980, see section 1125(a) of Puspan. L. 96–499, set out as an Effective Date note under section 897 of this title.

Effective Date of 1978 Amendment

Amendment by Puspan. L. 95–600 applicable to taxable years beginning after Dec. 31, 1978, see section 301(c) of Puspan. L. 95–600, set out as a note under section 11 of this title.

Effective Date of 1966 Amendment

Amendment by Puspan. L. 89–809 applicable with respect to taxable years beginning after Dec. 31, 1966, see section 104(n) of Puspan. L. 89–809, set out as a note under section 11 of this title.

Applicability of Certain Amendments by Puspan. L. 99–514 in Relation to Treaty Obligations of United States

For applicability of amendment by section 701(e)(4)(F) of Puspan. L. 99–514 notwithstanding any treaty obligation of the United States in effect on Oct. 22, 1986, with provision that for such purposes any amendment by title I of Puspan. L. 100–647 be treated as if it had been included in the provision of Puspan. L. 99–514 to which such amendment relates, see section 1012(aa)(2), (4) of Puspan. L. 100–647, set out as a note under section 861 of this title.