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TITLE 26-INTERNAL REVENUE CODE commenced within the taxable year in which the loan is made, and (ii) the percentage which, based on the experience of producers of similar films, the annual receipts of such producers from the sale, lease, or rental of such films outside the United States is of the annual gross receipts of such producers from the sale, lease, or rental of such films. (B) Domestic film maker For purposes of this paragraph, a borrow- er is a domestic film maker with respect to a film if- (i) such borrower is a United States person within the meaning of section 7701(a)(30), except that with respect to a partnership, all of the partners must be United States persons, and with respect to a corporation, all of its officers and at least a majority of its directors must be United States persons; (ii) such borrower is engaged in the trade or business of making the film with respect to which the loan is made; (fii) the studio, if any, used or to be used for the taking of photographs and the re- cording of sound incorporated into such film is located in the United States; (iv) the aggregate playing time of por- tions of such film photographed outside the United States does not or will not exceed 20 percent of the playing time of such film; and (v) not less than 80 percent of the total amount paid or to be paid for services per- formed in the making of such film is paid or to be paid to persons who are United States persons at the time such services are -performed or consists of amounts which are fully taxable by the United States. (C) Special rules for application of subparagraph (B)(v) For purposes of clause (v) of subpara- graph (B)- (1) there shall not be taken into account any amount which is contingent upon re- ceipts or profits of the film and which is fully taxable by the United States (within the meaning of clause (ii)); and (1i) any amount paid or to be paid to a United States person, to a non-resident alien individual, or to a corporation which furnishes the services of an officer or em- ployee to the borrower with respect to the making of a film, shall be treated as fully taxable by the United States only if the total amount received by such person, in- dividual, officer, or employee for services performed in the making of such film is fully included in gross income for pur- poses of this chapter. (e) Related foreign export corporation In determining whether a corporation (here- inafter in this subsection referred to as "the do- mestic corporation") is a DISC- (1) Foreign international sales corporation A foreign corporation is a related foreign export corporation if- (A) stock possessing more than 50 percent of the total combined voting power of all classes of stock entitled to vote is owned di- rectly by the domestic corporation, (B) 95 percent or more of such foreign corporation's gross receipts for its taxable year ending with or within the taxable year of the domestic corporation consists of qualified export receipts described in sub- paragraphs (A), (B), (C), and (D) of subsec- tion (a)(1) and interest on any obligation described in paragraphs (3) and (4) of sub- section (b), and (C) the adjusted basis of the qualified export assets (described in paragraphs (1), (2), (3), and (4) of subsection (b)) held by such foreign corporation at the close of such taxable year equals or exceeds 95 per- cent of the sum of the adjusted basis of all assets held by it at the close of such taxable year. (2) Real property holding company A foreign corporation is a related foreign export corporation If- (A) stock possessing more than 50 percent of the total combined voting power of all classes of stock entitled to vote is owned di- rectly by the domestic corporation, and (B) its exclusive function is to hold real property for the exclusive use (under a lease or otherwise) of the domestic corpora- tion. (3) Associated foreign corporation A foreign corporation is a related foreign export corporation if- (A) less than 10 percent of the total com- bined voting power of all classes of stock en- titled to vote of such foreign corporation is owned (within the meaning of section 1563 (d) and (e)) by the domestic corporation or by a controlled group of corporations (within the meaning of section 1563) of which the domestic corporation is a member, and (B) the ownership of stock or securities in such foreign corporation by the domestic corporation is determined (under regula- tions prescribed by the Secretary) to be rea- sonably in furtherance of a transaction or transactions giving rise to qualified export receipts of the domestic corporation. (f) Gross receipts For purposes of this part, the term "gross re- ceipts" means the total receipts from the sale, lease, or rental of property held primarily for sale, lease, or rental in the ordinary course of trade or business, and gross income from .all other sources. In the case of commissions on the sale, lease, or rental of property, the amount taken into account for purposes of this part as gross receipts shall be the gross receipts on the sale, lease, or rental of the property on which such commissions arose. (g) United States defined For purposes of this part, the term "United States" includes the Commonwealth of Puerto Rico and the possessions of the United States. (Added Pub. L. 92-178, title V, § 501, Dec. 10, 1971, 85 Stat. 538, and amended Pub. L. 93-482, § 3(a), Oct. 26, 1974, 88 Stat. 1456; Pub. L. 94-12, Page 623