Page:United States Statutes at Large Volume 90 Part 2.djvu/166

 90 STAT. 1634

26 USC 960 note.

PUBLIC LAW 94-455—OCT. 4, 1976 cent of the voting stock of which is owned by such domestic corporation, or " (B) of a second foreign corporation (hereinafter in this subsection referred to as the 'second foreign corporation') a t least 10 percent of the voting stock of which is owned by the first foreign corporation, or " (C) of a t h i r d foreign corporation (hereinafter in t h i s subsection referred to as the ' t h i r d foreign corporation') a t least 10 percent of the voting stock of which is owned by the second foreign corporation, then, under regulations prescribed by the Secretary, such domestic corporation shall be deemed to have p a i d the same proportion of the total income, w a r profits, and excess profits taxes paid (or deemed paid) by such foreign corporation to a foreign country or possession of the United States for the taxable year on o r with respect to the earnings and profits of such foreign corporation which the amount of earnings and profits of such foreign corporation so included in gross income of the domestic corporation bears to the entire amount of the earnings and profits of such corporation for such taxable year. This paragraph shall not apply with respect to any amount included in the gross income of such domestic corporation attributable to earnings and profits of the second foreign corporation or of the t h i r d foreign corporation unless, in the case of the second foreign corporation, the percentage-of-voting-stock requirement of section 902(b)(3)(A) is satisfied, and in the case of the t h i r d foreign corporation, the percentage-of-voting-stock requirement of section 9 0 2 (b)(3)(B) is satisfied." (b) EFFECTIVE D A T E. — The amendment made by this section shall ^PPly with respect to earnings and profits of a foreign corporation included, under section 951(a) of the I n t e r n a l Revenue Code of 1954, in the gross income of a domestic corporation in taxable years beginning after December 31, 1976. P A R T IV — M O N E Y OR OTHER PROPERTY MOVING O U T OF OR I N TO THE UNITED STATES

26 USC 861.

26 USC 367.

SEC. 1041. PORTFOLIO DEBT INVESTMENTS IN UNITED STATES OF NONRESIDENT ALIENS AND FOREIGN CORPORATIONS. The last sentence of section 861(c) (relating to interest on deposits, etc.) is hereby repealed. SEC. 1042. CHANGES IN RULING REQUIREMENTS UNDER SECTION 367; CERTAIN CHANGES IN SECTION 1248. (a) AMENDMENT OF SECTION 367.—Section 367 ( r e l a t i n g to foreign

corporations) is amended to read as follows: "SEC. 367. FOREIGN CORPORATIONS. "(a)

TRANSFERS OF PROPERTY F R O M TPIE UNITED STATES. — " (1) GENERAL RULE.—If, in connection w4th any exchange

described i n section 332, 351, 354, 355, 356, or 361, there is a transfer of property (other than stock or securities of a foreign corporation which is a party to the exchange or a party to the reorganization) by a United States person to a foreign corporation, for purposes of determining the extent to which gain shall be recognized on such transfer, a foreign corporation shall not be considered to be a corporation unless, pursuant to a request filed not later than the close of the 183d day after the beginning of such

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