(i)any payment of interest (including any original issue discount), dividends, rents, salaries, wages, premiums, annuities, compensations, remunerations, emoluments, and other fixed or determinable annual or periodical gains, profits, and income, if such payment is from sources within the United States, and
(ii)any gross proceeds from the sale or other disposition of any property of a type which can produce interest or dividends from sources within the United States.
(B) Exception for income connected with United States business
Such term shall not include any item of income which is taken into account under section
882(a)(1) for the taxable year.
(C) Special rule for sourcing interest paid by foreign branches of domestic financial institutions
Subparagraph (B) of section
861(a)(1) shall not apply.
(2) Substantial United States owner
(A) In general
The term “substantial United States owner” means—
(i)with respect to any corporation, any specified United States person which owns, directly or indirectly, more than 10 percent of the stock of such corporation (by vote or value),
(ii)with respect to any partnership, any specified United States person which owns, directly or indirectly, more than 10 percent of the profits interests or capital interests in such partnership, and
(iii)in the case of a trust—
(I)any specified United States person treated as an owner of any portion of such trust under subpart E of part I of subchapter J of chapter 1, and
(II)to the extent provided by the Secretary in regulations or other guidance, any specified United States person which holds, directly or indirectly, more than 10 percent of the beneficial interests of such trust.
(B) Special rule for investment vehicles
In the case of any financial institution described in section
1471(d)(5)(C), clauses (i), (ii), and (iii) of subparagraph (A) shall be applied by substituting “0 percent” for “10 percent”.
(3) Specified United States person
Except as otherwise provided by the Secretary, the term “specified United States person” means any United States person other than—
(A)any corporation the stock of which is regularly traded on an established securities market,
(B)any corporation which is a member of the same expanded affiliated group (as defined in section
1471(e)(2) without regard to the last sentence thereof) as a corporation the stock of which is regularly traded on an established securities market,
(C)any organization exempt from taxation under section
501(a) or an individual retirement plan,
(D)the United States or any wholly owned agency or instrumentality thereof,
(E)any State, the District of Columbia, any possession of the United States, any political subdivision of any of the foregoing, or any wholly owned agency or instrumentality of any one or more of the foregoing,
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
An empty table indicates that we see no relevant changes listed in the classification tables. If you suspect that our system may be missing something, please double-check with the Office of the Law Revision Counsel.
Description of Change
Statutes at Large
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