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us/statute/26/901/j — Denial of foreign tax credit, etc., with respect to certain foreign countries · Axiom

(1) In general Notwithstanding any other provision of this part— (A) no credit shall be allowed under subsection (a) for any income, war profits, or excess profits taxes paid or accrued (or deemed paid under section 960) to any country if such taxes are with respect to income attributable to a period during which this subsection applies to such country, and (B) subsections (a), (b), and (c) of section 904 and section 960 shall be applied separately with respect to income attributable to such a period from sources within such country.

(2) Countries to which subsection applies (A) In general This subsection shall apply to any foreign country— (i) the government of which the United States does not recognize, unless such government is otherwise eligible to purchase defense articles or services under the Arms Export Control Act, (ii) with respect to which the United States has severed diplomatic relations, (iii) with respect to which the United States has not severed diplomatic relations but does not conduct such relations, or (iv) which the Secretary of State has, pursuant to section 6(j) 2 2 See References in Text note below. of the Export Administration Act of 1979, as amended, designated as a foreign country which repeatedly provides support for acts of international terrorisms. (B) Period for which subsection applies This subsection shall apply to any foreign country described in subparagraph (A) during the period— (i) beginning on the later of— (I) January 1, 1987 , or (II) 6 months after such country becomes a country described in subparagraph (A), and (ii) ending on the date the Secretary of State certifies to the Secretary of the Treasury that such country is no longer described in subparagraph (A).

(3) Taxes allowed as a deduction, etc. Sections 275 and 78 shall not apply to any tax which is not allowable as a credit under subsection (a) by reason of this subsection.

(4) Regulations The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subsection, including regulations which treat income paid through 1 or more entities as derived from a foreign country to which this subsection applies if such income was, without regard to such entities, derived from such country.

(5) Waiver of denial (A) In general Paragraph (1) shall not apply with respect to taxes paid or accrued to a country if the President— (i) determines that a waiver of the application of such paragraph is in the national interest of the United States and will expand trade and investment opportunities for United States companies in such country; and (ii) reports such waiver under subparagraph (B). (B) Report Not less than 30 days before the date on which a waiver is granted under this paragraph, the President shall report to Congress— (i) the intention to grant such waiver; and (ii) the reason for the determination under subparagraph (A)(i).

(2)Countries to which subsection applies#

(A) In general This subsection shall apply to any foreign country— (i) the government of which the United States does not recognize, unless such government is otherwise eligible to purchase defense articles or services under the Arms Export Control Act, (ii) with respect to which the United States has severed diplomatic relations, (iii) with respect to which the United States has not severed diplomatic relations but does not conduct such relations, or (iv) which the Secretary of State has, pursuant to section 6(j) 2 2 See References in Text note below. of the Export Administration Act of 1979, as amended, designated as a foreign country which repeatedly provides support for acts of international terrorisms.

(B) Period for which subsection applies This subsection shall apply to any foreign country described in subparagraph (A) during the period— (i) beginning on the later of— (I) January 1, 1987 , or (II) 6 months after such country becomes a country described in subparagraph (A), and (ii) ending on the date the Secretary of State certifies to the Secretary of the Treasury that such country is no longer described in subparagraph (A).

(2)(A)In general#

This subsection shall apply to any foreign country—

(i) the government of which the United States does not recognize, unless such government is otherwise eligible to purchase defense articles or services under the Arms Export Control Act,

(ii) with respect to which the United States has severed diplomatic relations,

(iii) with respect to which the United States has not severed diplomatic relations but does not conduct such relations, or

(iv) which the Secretary of State has, pursuant to section 6(j) 2 2 See References in Text note below. of the Export Administration Act of 1979, as amended, designated as a foreign country which repeatedly provides support for acts of international terrorisms.

(2)(A)(i)#

the government of which the United States does not recognize, unless such government is otherwise eligible to purchase defense articles or services under the Arms Export Control Act,

(2)(A)(ii)#

with respect to which the United States has severed diplomatic relations,

(2)(A)(iii)#

with respect to which the United States has not severed diplomatic relations but does not conduct such relations, or

(2)(A)(iv)#

which the Secretary of State has, pursuant to section 6(j) 2 2 See References in Text note below. of the Export Administration Act of 1979, as amended, designated as a foreign country which repeatedly provides support for acts of international terrorisms.

(2)(B)Period for which subsection applies#

This subsection shall apply to any foreign country described in subparagraph (A) during the period—

(i) beginning on the later of— (I) January 1, 1987 , or (II) 6 months after such country becomes a country described in subparagraph (A), and

(ii) ending on the date the Secretary of State certifies to the Secretary of the Treasury that such country is no longer described in subparagraph (A).

(2)(B)(i)#

beginning on the later of—

(I) January 1, 1987 , or

(II) 6 months after such country becomes a country described in subparagraph (A), and

(2)(B)(i)(I)#

January 1, 1987 , or

(2)(B)(i)(II)#

6 months after such country becomes a country described in subparagraph (A), and

(2)(B)(ii)#

ending on the date the Secretary of State certifies to the Secretary of the Treasury that such country is no longer described in subparagraph (A).

Denial of foreign tax credit, etc., with respect to certain foreign countries

Denial of foreign tax credit, etc., with respect to certain foreign countries

(1)In general#

(1)(A)#

(1)(B)#

(2)Countries to which subsection applies#

(2)(A)In general#

(2)(A)(i)#

(2)(A)(ii)#

(2)(A)(iii)#

(2)(A)(iv)#

(2)(B)Period for which subsection applies#

(2)(B)(i)#

(2)(B)(i)(I)#

(2)(B)(i)(II)#

(2)(B)(ii)#

(3)Taxes allowed as a deduction, etc.#

(4)Regulations#

(5)Waiver of denial#

(5)(A)In general#

(5)(A)(i)#

(5)(A)(ii)#

(5)(B)Report#

(5)(B)(i)#

(5)(B)(ii)#