26 CFR 1.957-3 - United States person defined.
(a)Basic rule -
(1)In general. The term United States person has the same meaning for purposes of sections 951 through 965 that it has under section 7701(a)(30) and the regulations under that section, except as provided in paragraphs (b) and (c) of this section, which provide, with respect to corporations organized in possessions of the United States, that certain residents of such possessions are not United States persons. The effect of determining that an individual is not a United States person for such purposes is to exclude such individual in determining whether a foreign corporation created or organized in, or under the laws of, a possession of the United States is a controlled foreign corporation. See § 1.957-1 for the definition of the term “controlled foreign corporation.”
(2)Special provisions applicable to possessions of the United States. For purposes of this section -
(i) The term possession of the United States means Puerto Rico or any section 931 possession;
(ii) The term section 931 possession has the same meaning that it has under § 1.931-1(c)(1);
(b)Puerto Rico corporation and resident. An individual (who, without regard to this paragraph (b), is a United States person) will not be considered a United States person with respect to a foreign corporation created or organized in, or under the laws of, Puerto Rico for the taxable year of such corporation that ends with or within the taxable year of such individual if -
(2) A dividend received by such individual from such corporation during the taxable year of such corporation would, for purposes of section 933(1), be treated as income derived from sources within Puerto Rico. For purposes of this paragraph (b)(2), the rules of § 1.937-2(g)(1) will not apply.
(c)Section 931 possession corporation and resident. An individual (who, without regard to this paragraph (c), is a United States person) will not be considered a United States person with respect to a foreign corporation created or organized in, or under the laws of, a section 931 possession for the taxable year of such corporation that ends with or within the taxable year of such individual if -
(i) 80 percent or more of its gross income for the 3-year period ending at the close of the taxable year (or for such part of such period as such corporation or any predecessor has been in existence) was derived from sources within section 931 possessions or was effectively connected with the conduct of a trade or business in section 931 possessions; and
(d)Effective/applicability date. This section applies to taxable years ending after April 9, 2008.
- 26 CFR 1.6046-1 — Returns as to Organization or Reorganization of Foreign Corporations and as to Acquisitions of Their Stock.
- 26 CFR 1.955-4 — Definition of Less Developed Country.
- 26 CFR 1.6038-2 — Information Returns Required of United States Persons With Respect to Annual Accounting Periods of Certain Foreign Corporations Beginning After December 31, 1962.
- 26 CFR 1.963-1 — Exclusion of Subpart F Income Upon Receipt of Minimum Distribution.