Page:United States Statutes at Large Volume 97.djvu/151

 PUBLIC LAW 98-21 —APR. 20, 1983 97 STAT. 119 effect an agreement, entered into pursuant to section 3121(1) of such Code, with respect to such affiliate,". 26 USC 3i2i. (c) Subsection (a) of section 406 of the Internal Revenue Code of 1954 (relating to treatment of certain employees of foreign subsidiar- 26 USC 406. ies for pension, etc., purposes) is amended to read as follows: "(a) TREATMENT AS EMPLOYEES OF AMERICAN EMPLOYER.— For pur- poses of applying this part with respect to a pension, profit-sharing, or stock bonus plan described in section 401(a), an annuity plan described in section 403(a), or a bond purchase plan described in section 405(a), of an American employer (as defined in section 3121(h)), an individual who is a citizen or resident of the United States and who is an employee of a foreign affiliate (as defined in section 3121(1)(8)) of such American employer shall be treated as an Ante, p. ii8. employee of such American employer, if— "(1) such American employer has entered into an agreement under section 3121(1) which applies to the foreign affiliate of which such individual is an employee; "(2) the plan of such American employer expressly provides for contributions or benefits for individuals who are citizens or residents of the United States and who are employees of its foreign affiliates to which an agreement entered into by such American employer under section 3121(1) applies; and ''(3) contributions under a funded plan of deferred compensa- tion (whether or not a plan described in section 401(a), 403(a), or 405(a)) are not provided by any other person with respect to the remuneration paid to such individual by the foreign affiliate." (d) Paragraph (1) of section 407(a) of such Code (relating to certain 26 USC 407. employees of domestic subsidiaries engaged in business outside the United States) is amended— (1) by striking out "citizen of the United States" and inserting in lieu thereof "citizen or resident of the United States", and (2) by striking out "citizens of the United States" and insert- ing in lieu thereof "citizens or residents of the United States". (e)(1) Those provisions of subsection (1) of section 3121 of such Code 26 USC 3121. which are not amended by subsection (a) of this section are amended in accordance with the following table: Strike out (wherever it appears in the text or heading): And insert: domestic corporation American employer domestic corporations American employers subsidiary affiliate subsidiaries affiliates foreign corporation foreign entity foreign corporations foreign entities citizens citizens or residents the word "a" where it appears an before "domestic". (2)(A) Section 406 of such Code (other than subsection (a^ thereof) 26 USC 406. is amended in accordance with the following table: Strike out (wherever appearing in the text): And insert: domestic corporation American employer subsidiary affiliate the word "a" where it appears an before "domestic". (B) Paragraph (3) of subsection (c) of such section 406 (as in effect before the amendment made by subparagraph (A)) is amended by striking out "another corporation controlled by such domestic corpo-

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