26 U.S. Code § 882 - Tax on income of foreign corporations connected with United States business
A foreign corporation engaged in trade or business within the United States during the taxable year shall be taxable as provided in section 11, 55, or 1201(a) on its taxable income which is effectively connected with the conduct of a trade or business within the United States.
In determining taxable income for purposes of paragraph (1), gross income includes only gross income which is effectively connected with the conduct of a trade or business within the United States.
For special tax treatment of gain or loss from the disposition by a foreign corporation of a United States real property interest, see section 897.
In the case of a foreign corporation, the deductions shall be allowed only for purposes of subsection (a) and (except as provided by subparagraph (B)) only if and to the extent that they are connected with income which is effectively connected with the conduct of a trade or business within the United States; and the proper apportionment and allocation of the deductions for this purpose shall be determined as provided in regulations prescribed by the Secretary.
A foreign corporation shall receive the benefit of the deductions and credits allowed to it in this subtitle only by filing or causing to be filed with the Secretary a true and accurate return, in the manner prescribed in subtitle F, including therein all the information which the Secretary may deem necessary for the calculation of such deductions and credits. The preceding sentence shall not apply for purposes of the tax imposed by section 541 (relating to personal holding company tax), and shall not be construed to deny the credit provided by section 33 for tax withheld at source or the credit provided by section 34 for certain uses of gasoline.
Except as provided by section 906, foreign corporations shall not be allowed the credit against the tax for taxes of foreign countries and possessions of the United States allowed by section 901.
If any foreign corporation has no office or place of business in the United States but has an agent in the United States, the return required under section 6012 shall be made by the agent.
 Par. (3) heading editorially supplied.
2014—Subsec. (a)(1). Pub. L. 113–295 struck out “, 59A” after “section 11, 55”.
1988—Subsec. (a)(1). Pub. L. 100–647, § 2001(c)(2), inserted reference to section 59A.
Subsec. (b). Pub. L. 100–647, § 1012(s)(2)(B), inserted “, except where the context clearly indicates otherwise” after “foreign corporation”.
Subsec. (e). Pub. L. 100–647, § 6133(a), substituted “interest on obligations of the United States which is not portfolio interest (as defined in section 881(c)(2))” for “interest on obligations of the United States”, and struck out at end “The preceding sentence shall not apply to any Guam corporation which is treated as not being a foreign corporation by section 881(b)(1) for the taxable year.”
1986—Subsec. (a)(1). Pub. L. 99–514, § 701(e)(4)(F), inserted reference to section 55.
Subsec. (e). Pub. L. 99–514, § 1236(a), inserted “The preceding sentence shall not apply to any Guam corporation which is treated as not being a foreign corporation by section 881(b)(1) for the taxable year.”
1984—Subsec. (c)(2). Pub. L. 98–369 substituted reference to section “33” for “32” and “34” for “39”.
1983—Subsec. (c)(2). Pub. L. 97–424 struck out “and lubricating oil” after “gasoline”.
1980—Subsec. (a)(3). Pub. L. 96–499 added par. (3).
1978—Subsec. (a). Pub. L. 95–600 substituted in subsec. (a) heading “Imposition of tax” for “Normal tax and surtax” and in par. (1) heading “In general” for “Imposition of tax”.
1976—Subsecs. (c)(1)(A), (2), (d). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.
1966—Pub. L. 89–809 substantially revised the income tax treatment of foreign corporations, introduced the concept of taxable income effectively connected with the conduct of a trade or business within the United States into provisions dealing with the imposition of tax, substituted a concept of gross income that included gross income derived from sources within the United States not effectively connected with the conduct of a trade or business within the United States and gross income effectively connected with the conduct of a trade or business within the United States for a concept of gross income that included only gross income from sources within the United States, and inserted provisions for an election to treat real property income as income connected with United States business, treatment of interest on United States obligations received by banks organized in possessions, and the returns of tax by agents, and inserted cross reference to section 906(b)(1).
Amendment by section 701(e)(4)(F) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Superfund Revenue Act of 1986, Pub. L. 99–499, title V, to which it relates, see section 2001(e) of Pub. L. 100–647, set out as a note under section 56 of this title.
Amendment by section 701(e)(4)(F) of Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, with certain exceptions and qualifications, see section 701(f) of Pub. L. 99–514, set out as an Effective Date note under section 55 of this title.
Amendment by Pub. L. 98–369 applicable to taxable years beginning after Dec. 31, 1983, and to carrybacks from such years, see section 475(a) of Pub. L. 98–369, set out as a note under section 21 of this title.
For applicability of amendment by section 701(e)(4)(F) of Pub. L. 99–514 notwithstanding any treaty obligation of the United States in effect on Oct. 22, 1986, with provision that for such purposes any amendment by title I of Pub. L. 100–647 be treated as if it had been included in the provision of Pub. L. 99–514 to which such amendment relates, see section 1012(aa)(2), (4) of Pub. L. 100–647, set out as a note under section 861 of this title.
Written determinations for this section
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- Affected Item : 2015-04-10
- Return Required : 2015-04-10
- Interest deductions : 2010-04-02
- Special Rules for Insurance Companies : 2010-04-02
- Allocation of Deductions : 2010-04-02
- Interest deductions : 2005-04-01
- Liability/Asset Ratio : 2005-04-01
- Separate Currency Pool : 2005-04-01
- Tax on Nonresident Alien Individuals : 2005-01-28
- Liability/Asset Ratio : 2002-08-09
- Interest deductions : 2001-12-07
- Transfer Pricing Rules : 2001-12-07
- Liability/Asset Ratio : 2001-06-22
- Allocation of Deductions : 2000-07-14
- Interest deductions : 2000-07-07
- Branch - Level Interest Tax : 2000-07-07
- Branch/Book : 2000-07-07
- Allocation of Deductions : 2000-07-07
- Interest deductions : 2000-05-05
- Deferred Payments : 2000-05-05
- Property Formerly Used in U.S. Business : 2000-05-05
- Tax on Excess Interest : 2000-05-05
- Interest deductions : 2000-03-03
- Return Required : 1999-11-05
- Return Required : 1999-10-15
- Return Required : 1999-10-08
- Germany : 1999-10-08
- Other Applicable Rules : 1999-10-08
- Interest deductions : 1999-04-30
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