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TITLE 26-INTERNAL REVENUE CODE § 1901(a)(79), (b)(1)(F)(i), (12)(A), 90 Stat. 1777, 1790, 1795.) AMEDMETS 1976-Subsec. (c). Pub. L. 94-455, §§ 1901(a)(79), (b)l(1)(F(i), struck out subsec. (c) relating to deduction for obligations of United States and its instrumental- ities. Former subsec. (d) redesignated c) and, as rede- signated, substituted "foreign personal holding compa- ny income" for "foreign personal holding company" following "credits, taxable income". Subsec. d). Pub. L. 94-455, § 1901(b)(1)(F)(i), rede- signated former subsec. (e) as Cd). Subsec. (e). Pub. L. 94-455, § 1901(b)(1)(F)(i), redesig- nated former subsec. (fM as e). Subsec. f). Pub. L. 94-455,. §§ 1901(b)(1)(P)(i), (b)(12)(A), redesignated former subsec. (g) as Mf) and, as redesignated, struck out par. (3) relating to cross reference for treatment of gain on liquidation of cer- tain foreign personal holding companies. Subsec. (g). Pub. L. 94-455, § 1901(b)(1)(F)(i), rede- signated former subsec. (g) as Mf). 1964-Subsec. Cb). Pub. L. 88-272 inserted "(deter- mined as if any distribution in liquidation actually made in such taxable year had not been made)". EFFECTIVE DATE OF 1976 AmipDmENT Amendment by Pub. L. 94-455 applicable with re- spect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as an Ef- fective Date of 1976 Amendment note under section 2 of this title. EFFECTIVE DATE OF 1964 A MENT Amendment by Pub. L. 88-272 applicable to distribu. tions made in any taxable year of the distributing cor- poration beginning after Dec. 31, 1963, see section 225(t) of Pub. L. 88-272, set out as an Effective Date of 1964 Amendment note under section 316 of this title. CRoss RENERENcEs Adjustments to basis, see section 1016 of this title. Liquidations before Jan. 1, 1966, see section 225(h) of Pub. L. 88-272, set out as a note under section 333 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 951, 1016, 6103, 6501 of this title. § 552. Definition of foreign personal holding company (a) Ceneral rule For purposes of this subtitle, the term "for- eign personal holding company" means any for- eign corporation if- (l) Gross income requirement At least 60 percent of its gross income (as defined in section 555(a)) for the taxable year is foreign personal holding company income as defined in section 553; but If the corpora- tion is a foreign personal holding company with respect to any taxable year ending after August 26, 1937, then, for each subsequent taxable year, thc minimum percentage shall be 50 percent in lieu of 60 percert, until a taxable year during the whole of which the stock ownership required by paragraph (2) does not exist, or until the expiration of three consecutive taxable years in each of which less than 50 percent of the gross income is foreign personal holding company income. For purposes of this paragraph, there shall be included in the gross income the amount in- cludible therein as a dividend by reason of the application of section 555(c)(2); and (2) Stock ownership requirement At any time during the taxable year more than 50 percent in value of its outstanding stock is owned, directly or indirectly, by or for not more than five individuals who are citi- zens or residents of the United States, herein- after called "United States group". (b) Exceptions The term "foreign personal holaing compa- ny" does not include- (1) a corporation exempt from tax under subchapter F (sec. 501 and following); and (2) a corporation organized and doing busi- ness under the banking and credit laws of a foreign country if it is established (annually or at other periodic intervals) to the satisfac- tion of the Secretary that such corporation is not formed or availed of for the purpose of evading or avoiding United States income taxes which would otherwise be imposed upon its shareholders. If the Secretary is sat- isfied that such corporation is not so formed or availed of, he shall issue to such corpora- tion annually or at other periodic intervals a certification that the corporation is not a for- eign personal holding company. Each United States shareholder of a foreign corporation which would, except for the provi- sions of paragraph (2), be a foreign personal holding company, shall attach to and file with his income tax return for the taxable year a copy of the certification by the Secretary made pursuant to paragraph (2). Such copy shall be filed with the taxpayer's return for the taxable year if he has been a shareholder of such cor- poration for any part of such year. (Aug. 16, 1954, ch. 736, 68A Stat. 195; Oct. 4, 1976, Pub. L. 94-455, title XIX, § 1906(b)(13)(A), 90 Stat. 1834.) AMENDMNTS 1976-Subsec. Cb). Pub. L. 94-455 struck out "or his delegate" following "Secretary" in three places. CROSS REFERENCES Accumulated earnings tax as inapplicable to foreign personal holding company defined in this section, see section 532 of this title. Election as to taxable and partially taxable bonds under provisions respecting amortizable bond premi- um in case of bonds held by foreign personal holding company as defined in this section, see section 171 of this title. Personal holding company as excluding foreign per- sonal holding company, see section 542 of this title. Returns of officers, directors, and shareholders of foreign personal holding companies, see section 6035 of this title. SECTxON REFERI TO IN OTHER SECTIONS This section is referred to in sections 171, 532, 542, 551, 553, 554, 555, 562, 1212, 6035, 6103 of this title. § 553. Foreign personal holding company Income (a) Foreign personal holding company Income For purposes of this subtitle, the term "for- eign personal holding company income" means that portion of the gross income, determined for purposes of section 552, which consists of: (1) Dividends, etc. Dividends, interest, royalties, and annuities. Page 422