Page:United States Statutes at Large Volume 85.djvu/572

 542

PUBLIC LAW 92-178-DEC. 10, 1971

[85 STAT.

" (iii) the studio, if any, used or to be used for the taking of photographs and the recording of sound incorporated into such film is located in the United States; "(iv) the aggregate playing time of portions of such film photographed outside the United States does not or will not exceed 20 percent of the playing time of such film; and " (v) not less than 80 percent of the total amount paid or to be paid for services performed in the making of such film IS paid or to be paid to persons who are United States persons at the time such services are performed or consists of amounts which are fully taxable by the United States. "(C)

SPECIAL RULES FOR APPLICATION OF SUBPARAGRAPH

(B)(v).—For purposes of clause (v) of subparagraph (B) — "(i) there shall not be taken into account any amount which is contingent upon receipts or profits of the film and which is fully taxable by the United States (within the meaning of clause ( i i)); and "(ii) any amount paid or to be paid to a United States person, to a non-resident alien individual, or to a corporation which furnishes the services of an officer or employee to the borrower with respect to the making of a film, shall be treated as fully taxable by the United States only if the total amount received by such person, individual, officer, or employee for services performed in the making of such film is fully included in gross income for purposes of this chapter. "(e) RELATED FOREIGN EXPORT CORPORATION.—In determining whether a corporation (hereinafter in this subsection referred to as 'the domestic corporation') is a DISC— "(1)

FOREIGN INTERNATIONAL SALES CORPORATION.—A foreign

corporation is a related foreign export corporation if— " (A) stock possessing more than 50 percent of the total combined voting power of all classes of stock entitled to vote is owned directly by the domestic corporation, " (B) 95 percent or more of such foreign corporation's gross receipts for its taxable year ending with or within the taxable year of the domestic corporation consists of qualified export receipts described in subparagraphs (A), (B), (C), and (D) of subsection (a)(1) and interest on any obligation described in paragraphs (3) and (4) of subsection (b), and " (C) the adjusted basis of the qualified export assets (described in paragraphs (1), (2), (3), and (4) of subsection (b)) held by such foreign corporation at the close of such taxable year equals or exceeds 95 percent of the sum of the adjusted basis of all assets held by it at the close of such taxable year. "(2) REAL PROPERTY HOLDING COMPANY.—A foreign corporation is a related foreign export corporation if— " (A) stock possessing more than 50 percent of the total combined voting power of all classes of stock entitled to vote is owned directly by the domestic corporation, and " (B) its exclusive function is to hold real property for the exclusive use (under a lease or otherwise) of the domestic corporation. "(3) ASSOCIATED FOREIGN CORPORATION.—A foreign corporation is a related foreign export corporation if—

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