dealer
(2) Exception for taxes paid by dealers (A) In general Paragraph (1) shall not apply to any qualified tax with respect to any property held in the active conduct in a foreign country of a business as a dealer in such property. (B) Qualified tax For purposes of subparagraph (A), the term “qualified tax” means a tax paid to a foreign country (other than the foreign country referred to in subparagraph (A)) if— (i) the item to which such tax is attributable is subject to taxation on a net basis by the country referred to in subparagraph (A), and (ii) such country allows a credit against its net basis tax for the full amount of the tax paid to such other foreign country. (C) Dealer For purposes of subparagraph (A), the term “dealer” means— (i) with respect to a security, any person to whom paragraphs (1) and (2) of subsection (k) would not apply by reason of paragraph (4) thereof, and (ii) with respect to any other property, any person with respect to whom such property is described in section 1221(a)(1). (D) Regulations The Secretary may prescribe such regulations as may be appropriate to carry out this paragraph, including regulations to prevent the abuse of the exception provided by this paragraph and to treat other taxes as qualified taxes.
Source
26 USC § 901(l)(2)
Scoping language
None identified, default scope is assumed to be the parent (subpart A) of this section.