Current through March 31, 2024
Section 1.883-0 - Outline of major topicsThis section lists the major paragraphs contained in §§ 1.883-1 through 1.883-5 .
§ 1.883-1 Exclusion of income from the international operation of ships or aircraft. (c) Qualified foreign corporation. (2) Stock ownership test.(3) Substantiation and reporting requirements.(ii) Further documentation. (B) Names and permanent addresses of certain shareholders.(4) Commissioner's discretion to cure defects in documentation.(d) Qualified foreign country.(e) Operation of ships or aircraft.(2) Pool, partnership, strategic alliance, joint operating agreement, code-sharing arrangement or other joint venture.(3) Activities not considered operation of ships or aircraft.(5) Definitions. (ii) Code-sharing arrangement.(v) Fiscally transparent entity under the income tax laws of the United States.(vii) Nonvessel operating common carrier.(viii) Space or slot charter.(f) International operation of ships or aircraft.(2) Determining whether income is derived from international operation of ships or aircraft. (i) International carriage of passengers. (B) Round trip travel on ships.(ii) International carriage of cargo.(iii) Bareboat charter of ships or dry lease of aircraft used in international operation of ships or aircraft.(iv) Charter of ships or aircraft for hire.(g) Activities incidental to the international operation of ships or aircraft. (2) Activities not considered incidental to the international operation of ships or aircraft.(3) Other Services. [Reserved](4) Activities involved in a pool, partnership, strategic alliance, joint operating agreement, code-sharing arrangement or other joint venture.(h) Equivalent exemption. (2) Determining equivalent exemptions for each category of income.(3) Special rules with respect to income tax conventions. (i) Countries with only an income tax convention.(ii) Countries with both an income tax convention and an equivalent exemption. (B) Special rule for claiming simultaneous benefits under section 883 and an income tax convention.(iii) Participation in certain joint ventures.(iv) Independent interpretation of income tax conventions. (4) Exemptions not qualifying as equivalent exemptions. (ii) Reduced tax rate or time limited exemption.(iii) Inbound or outbound freight tax.(iv) Exemptions for limited types of cargo.(v) Territorial tax systems.(vi) Countries that tax on a residence basis.(vii) Exemptions within categories of income. (i) Treatment of possessions.(j) Expenses related to qualified income.§ 1.883-2 Treatment of publicly-traded corporations. (b) Established securities market. (2) Exchanges with multiple tiers.(3) Computation of dollar value of stock traded.(4) Over-the-counter market.(5) Discretion to determine that an exchange does not qualify as an established securities market.(d) Regularly traded. (2) Classes of stock traded on a domestic established securities market treated as meeting trading requirements.(3) Closely-held classes of stock not treated as meeting trading requirements. (iii) Five-percent shareholders. (B) Investment companies.(e) Substantiation that a foreign corporation is publicly traded.(2) Availability and retention of documents for inspection.(f) Reporting requirements.§ 1.883-3 Treatment of controlled foreign corporations. (b) Qualified U.S. person ownership test.(2) Qualified U.S. person.(3) Treatment of bearer shares.(4) Ownership attribution through certain domestic entities.(c) Substantiation of CFC stock ownership.(2) Ownership statements from qualified U.S. persons.(3) Ownership statements from intermediaries.(4) Three-year period of validity.(5) Availability and retention of documents for inspection.(d) Reporting requirements.§ 1.883-4 Qualified shareholder stock ownership test. (b) Qualified shareholder. (2) Residence of individual shareholders. (3) Certain income tax convention restrictions applied to shareholders.(4) Not-for-profit organizations.(5) Pension funds. (i) Pension fund defined.(ii) Government pension funds.(iii) Nongovernment pension funds.(iv) Beneficiary of a pension fund.(c) Rules for determining constructive ownership.(1) General rules for attribution.(2) Partnerships.(ii) Partners resident in the same country.(4) Corporations that issue stock.(5) Taxable nonstock corporations.(6) Mutual insurance companies and similar entities.(7) Computation of beneficial interests in nongovernment pension funds.(d) Substantiation of stock ownership. (2) Application of general rule. (i) Ownership statements.(ii) Three-year period of validity.(3) Special rules. (i) Substantiating residence of certain shareholders.(ii) Special rule for registered shareholders owning less than one percent of widely-held corporations.(iii) Special rule for beneficiaries of pension funds.(A) Government pension fund.(B) Nongovernment pension fund.(iv) Special rule for stock owned by publicly-traded corporations.(v) Special rule for not-for-profit organizations.(vi) Special rule for a foreign airline covered by an air services agreement.(vii) Special rule for taxable nonstock corporations.(viii) Special rule for closely-held corporations traded in the United States.(4) Ownership statements from shareholders. (i) Ownership statements from individuals.(ii) Ownership statements from foreign governments.(iii) Ownership statements from publicly-traded corporate shareholders.(iv) Ownership statements from not-for-profit organizations.(v) Ownership statements from intermediaries.(B) Ownership statements from widely-held intermediaries with registered shareholders owning less than one percent of such widely-held intermediary.(C) Ownership statements from pension funds. (1) Ownership statements from government pension funds.(2) Ownership statements from nongovernment pension funds.(3) Time for making determinations.(D) Ownership statements from taxable nonstock corporations.(5) Availability and retention of documents for inspection.(e) Reporting requirements.§ 1.883-5 Effective dates. (b) Election for retroactive application.(c) Transitional information reporting rule.(d) Effective/applicability dates.T.D. 9087, 68 FR 51399, Aug. 26, 2003, as amended by T.D. 9332, 72 FR 34604, June 25, 2007; T.D. 9502, 75 FR 56861, Sept. 17, 2010