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Instructions for Form 5471
(Rev. January 2024)
(Use with the December 2023 revision of Form 5471 and separate Schedules G-1
and Q; the December 2021 revision of separate Schedules E, H, I-1, and M; the
December 2020 revision of separate Schedules J, P, and R; and the December 2012
revision of separate Schedule O.)
Information Return of U.S. Persons
With Respect to Certain Foreign Corporations
Department of the Treasury
Internal Revenue Service
Section references are to the Internal
Revenue Code unless otherwise noted.
Contents Page
Future Developments ............1
What’s New ..................1
General Instructions .............1
Purpose of Form ...............1
Who Must File ................1
When and Where To File ..........2
Categories of Filers .............2
Additional Filing Requirements ......7
Penalties ....................8
Other Reporting Requirements ......8
Specific Instructions .............9
Schedule B ................. 12
Schedule C ................. 13
Schedule F ................. 13
Schedule G ................. 13
Schedule I .................. 19
Instructions for Separate
Schedules ............... 29
Schedule E ................. 29
Schedule E-1 ................ 32
Schedule G-1 ................ 34
Schedule H ................. 35
Schedule I-1 ................ 37
Schedule J ................. 39
Schedule M ................. 42
Schedule O ................. 43
Schedule P ................. 43
Schedule Q ................. 44
Schedule R ................. 48
Principal Business Activity Codes ... 50
Future Developments
For the latest information about
developments related to Form 5471,
its schedules, and its instructions,
such as legislation enacted after they
were published, go to
IRS.gov/
Form5471.
What’s New
Changes to Form 5471. On page 1
of the form, new line 1b(3) requests
the previous reference ID number(s)
of the foreign corporation, if any.
On page 5 of the form, the question
on Schedule G, line 18, has been
deleted and replaced with new
questions 18a and 18b to better
reflect Regulations section 1.482-2(a)
(2)(iii)(B).
On page 5, the question on
Schedule G, line 19a, has been
reworded to better reflect Regulations
section 1.385-3. As a result, the
information requested on line 19b(1)
has also been reworded.
Changes to separate Sched-
ule G-1. Line 6b was reworded to
better reflect Regulations section
1.482-7A.
Changes to separate Schedule Q.
On page 1 of the schedule, line 1f now
requests “Other Foreign Personal
Holding Company Income.” Filers are
directed to see the instructions for an
attachment requirement for line 1f.
On page 4 of the schedule, the
following lines have been shaded
under column (xv), Loss Allocation.
•
Lines 3, 3(1), and 3(2), pertaining to
the Tested Income Group.
•
Lines 4, 4(1), and 4(2), pertaining to
the Residual Income Group.
Changes to these instructions.
These instructions have been updated
for the aforementioned changes to
Form 5471 and separate Schedule Q.
No changes were needed to the
instructions for separate
Schedule G-1.
In addition, the following changes
have been made.
The table of questions for Form
5471, Schedule G, line 14, has been
amended as follows. If the answer to
question 22 of that table is “Yes,” for
tax year 2023, affected Form 5471
filers will enter code “PRS” on Form
5471, Schedule G, line 14. For tax
year 2022, affected Form 5471 filers
entered “XX” on Form 5471,
Schedule G, line 14, if the answer to
question 22 of the table in the
instructions was “Yes.”
Worksheet A, lines 23 and 25, were
revised to add a reference to section
961(c).
Worksheet A, lines 28 and 31, were
amended.
Worksheet A, line 58, was revised
to more accurately reflect Regulations
section 1.951-1(b)(1)(ii)(A).
The instructions for Worksheet A,
line 1a, were clarified by adding a
reference to the limitation on section
954(c)(6) in Regulations section
1.245A-5.
A new instruction for Worksheet A,
lines 13b, 13d, 13e, 14b, 15b, 16b,
18b, and 19b, was added regarding
allocation and apportionment of
expenses to better reflect Regulations
section 1.954-1(c)(1)(i), (ii), and (iv).
A new Worksheet H-1 has been
added to these instructions. Also, new
Worksheet H-1 Instructions have been
provided.
In the instructions for separate
Schedule Q, line 1, the attachment
requirement for line 1f has been
clarified.
General Instructions
Purpose of Form
Form 5471 is used by certain U.S.
persons who are officers, directors, or
shareholders in certain foreign
corporations. The form and schedules
are used to satisfy the reporting
requirements of sections 6038 and
6046, and the related regulations.
Who Must File
Generally, all U.S. persons described
in Categories of Filers below must
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complete the schedules, statements,
and/or other information requested in
the chart, Filing Requirements for
Categories of Filers, later. Read the
information for each category carefully
to determine which schedules,
statements, and/or information apply.
Note. When a schedule is required
but all amounts are zero, the schedule
should still be filed with one or more
zero amounts. For schedules that are
completed by category (that is,
Schedules E, I-1, J, P, and Q),
inclusion of a single instance of that
schedule for any separate category
will meet the requirement.
If the filer is described in more than
one filing category, do not duplicate
information. However, complete all
items that apply. For example, if you
are the sole owner of a CFC (that is,
you are described in Categories 4 and
5a), complete all six pages of Form
5471 and separate Schedules E, G-1,
H, I-1, J, M, P, Q, and R.
Note. Complete a separate Form
5471 and all applicable schedules for
each applicable foreign corporation.
When and Where To File
Attach Form 5471 to your income tax
return (or, if applicable, partnership or
exempt organization return) and file
both by the due date (including
extensions) for that return.
Categories of Filers
Category 1 Filers
In general, a Category 1 filer is a
person who was a U.S. shareholder of
a foreign corporation that was a
section 965 specified foreign
corporation (SFC) at any time during
the foreign corporation’s tax year
ending with or within the U.S.
shareholder’s tax year, and who
owned that stock on the last day in
that year in which the foreign
corporation was a section 965 SFC,
taking into account the regulations
under section 965. There are three
different types of Category 1 filers,
each described below: Category 1a
filers, Category 1b filers, and
Category 1c filers.
Except as otherwise provided in the
instructions for each type of Category
1 filer below, the following definitions
apply for purposes of Category 1.
U.S. shareholder.
For purposes of
Category 1, a U.S. shareholder is a
U.S. person who owns (directly,
indirectly, or constructively, within the
meaning of section 958(a) and (b))
10% or more of the total combined
voting power or value of shares of all
classes of stock of a section 965 SFC.
See section 951(b).
U.S. person. For purposes of
Category 1, a U.S. person is:
1. A citizen or resident of the
United States;
2. A domestic partnership;
3. A domestic corporation; or
4. An estate or trust that is not a
foreign estate or trust, as defined in
section 7701(a)(31).
See section 957(c) for exceptions.
Section 965 SFC. For purposes of
Category 1, a section 965 SFC is:
1. A controlled foreign corporation
(CFC) (see Category 5 Filers, later, for
definition); or
2. Any foreign corporation with
respect to which one or more
domestic corporations are U.S.
shareholders.
However, if a passive foreign
investment company (PFIC) (as
defined in section 1297) with respect
to the shareholder is not a CFC, then
such corporation is not a section 965
SFC.
See section 965 and the
regulations thereunder for exceptions.
Category 1a Filer
A Category 1a filer is a Category 1
filer that is not a Category 1b or 1c
filer.
Category 1b Filer
A Category 1b filer is a person who is
an unrelated section 958(a) U.S.
shareholder (defined below) of a
foreign-controlled section 965 SFC
(defined below). This type of Category
1 filer extends the relief for certain
Category 5 filers announced in
section 8.02 of
Rev. Proc. 2019-40,
2019-43 I.R.B. 982, to similarly
situated Category 1 filers.
Unrelated section 958(a) U.S.
shareholder. For purposes of
Category 1b, an unrelated section
958(a) U.S. shareholder is a U.S.
shareholder with respect to a
foreign-controlled section 965 SFC
who:
1. Owns, within the meaning of
section 958(a), stock of a
foreign-controlled section 965 SFC;
and
2. Is not related (using principles
of section 954(d)(3)) to the
foreign-controlled section 965 SFC.
Foreign-controlled section 965
SFC. For purposes of Category 1b, a
foreign-controlled section 965 SFC is
a foreign corporation that is a section
965 SFC that would not be a section
965 SFC if the determination were
made without applying subparagraphs
(A), (B), and (C) of section 318(a)(3)
so as to consider a U.S. person as
owning stock that is owned by a
foreign person.
Category 1c Filer
A Category 1c filer is a person who is
a related constructive U.S.
shareholder (defined below) of a
foreign-controlled section 965 SFC
(defined below). This type of Category
1 filer extends the relief for certain
Category 5 filers announced in
section 8.03 of
Rev. Proc. 2019-40,
2019-43 I.R.B. 982, to similarly
situated Category 1 filers.
Related constructive U.S. share-
holder. For purposes of Category 1c,
a related constructive U.S.
shareholder is a U.S. shareholder with
respect to a foreign-controlled section
965 SFC who:
1. Does not own, within the
meaning of section 958(a), stock of
the foreign-controlled section 965
SFC; and
2. Is related (using principles of
section 954(d)(3)) to the
foreign-controlled section 965 SFC.
Foreign-controlled section 965
SFC. For purposes of Category 1c,
the term “foreign-controlled section
965 SFC” has the same meaning as
provided under Category 1b Filer,
earlier.
Additional Information for
Category 1 Filers
When Category 1 reporting is no
longer required. A Category 1 filer
must continue to file all information
required as long as:
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•
The section 965 SFC (or
foreign-controlled section 965 SFC)
has accumulated earnings and profits
(E&P) related to section 965 that is
reportable on Schedule J (Form
5471), or
•
The Category 1 filer has previously
taxed E&P related to section 965 that
is reportable on Schedule P (Form
5471).
Category 1 Filers—Exceptions
From Filing
Certain constructive owners.
•
A Category 1 filer does not have to
file Form 5471 if all of the following
conditions are met.
1. The Category 1 filer does not
own a direct interest in the foreign
corporation.
2. The Category 1 filer is required
to furnish the information requested
solely because of constructive
ownership (as determined under
Regulations section 1.958-2,
1.6038-2(c), or 1.6046-1(i)) from
another U.S. person.
3. The U.S. person through which
the Category 1 filer constructively
owns an interest in the foreign
corporation files Form 5471 to report
all of the information required of the
Category 1 filer.
•
A Category 1 filer does not have to
file Form 5471 if it:
1. Does not own a direct or
indirect interest in the foreign
corporation, and
2. Is required to file Form 5471
solely because of constructive
ownership from a nonresident alien.
No statement is required to be
attached to the tax return of a
Category 1 filer claiming either
constructive ownership exception.
See Regulations section 1.6038-2(j)
(2) and (3), and Regulations section
1.6038-2(l) for additional information.
No section 958(a) U.S. sharehold-
er. A Category 1 filer does not have to
file Form 5471 if no U.S. shareholder
(including the Category 1 filer) owns,
within the meaning of section 958(a),
stock in the section 965 SFC on the
last day in the year of the foreign
corporation in which it was a section
965 SFC and the SFC is a
foreign-controlled section 965 SFC.
This exception extends the relief for
Category 5 filers announced in
section 5.02 of
Notice 2018-13,
2018-6 I.R.B. 341, to similarly situated
Category 1 filers.
Unrelated constructive U.S. share-
holder. A Category 1 filer does not
have to file Form 5471 if all of the
following conditions are met.
1. The foreign corporation is a
foreign-controlled section 965 SFC.
2. The Category 1 filer is a U.S.
shareholder that does not own stock,
within the meaning of section 958(a),
in the foreign-controlled section 965
SFC.
3. The Category 1 filer is not
related, using principles of section
954(d)(3), to the foreign-controlled
section 965 SFC.
This exception implements the
relief for certain Category 5 filers
announced in section 8.04 of
Rev.
Proc. 2019-40, 2019-43 I.R.B. 982,
and extends it to Category 1 filers.
Other filing exceptions. Certain
other filing exceptions apply to all
categories of filers. See
Additional
Filing Exceptions, later.
Category 2 Filer
This category includes a U.S. citizen
or resident who is an officer or director
of a foreign corporation in which a
U.S. person (defined below) has
acquired (in one or more
transactions):
1. Stock that meets the 10% stock
ownership requirement (defined
below) with respect to the foreign
corporation, or
2. An additional 10% or more (in
value or voting power) of the
outstanding stock of the foreign
corporation.
A U.S. person has acquired stock
in a foreign corporation when that
person has an unqualified right to
receive the stock, even though the
stock is not actually issued. See
Regulations section 1.6046-1(c) and
(f)(1) for more details.
10% stock ownership requirement.
For purposes of Category 2, the stock
ownership threshold is met if a U.S.
person owns:
1. 10% or more of the total value
of the foreign corporation's stock, or
2. 10% or more of the total
combined voting power of all classes
of stock with voting rights.
See Regulations section
1.6046-1(i) for additional information.
U.S. person. For purposes of
Category 2, a U.S. person is:
1. A citizen or resident of the
United States;
2. A domestic partnership;
3. A domestic corporation; or
4. An estate or trust that is not a
foreign estate or trust, as defined in
section 7701(a)(31).
See Regulations section
1.6046-1(f)(3) for exceptions.
Additional Information for
Category 2 Filers
Foreign sales corporations (FSCs).
Category 2 filers who are
shareholders, officers, and directors
of an FSC (as defined in section 922,
as in effect before its repeal) must file
Form 5471 and a separate
Schedule O to report changes in the
ownership of the FSC.
Category 2 Filers—Exceptions
From Filing
A Category 2 filer does not have to file
Form 5471 if:
1. Immediately after a reportable
stock acquisition, three or fewer U.S.
persons own 95% or more in value of
the outstanding stock of the foreign
corporation and the U.S. person
making the acquisition files a return
for the acquisition as a Category 3
filer; or
2. The U.S. person(s) for which
the Category 2 filer is required to file
Form 5471 does not directly own an
interest in the foreign corporation but
is required to furnish the information
solely because of constructive stock
ownership from a U.S. person and the
person from whom the stock
ownership is attributed furnishes all of
the information required of the
Category 2 filer.
Other filing exceptions. Certain
other filing exceptions apply to all
categories of filers. See Additional
Filing Exceptions, later.
Category 3 Filer
This category includes:
1. A U.S. person (defined below)
who acquires stock in a foreign
corporation which, when added to any
stock owned on the date of
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acquisition, meets the 10% stock
ownership requirement (defined
below) with respect to the foreign
corporation;
2. A U.S. person who acquires
stock which, without regard to stock
already owned on the date of
acquisition, meets the 10% stock
ownership requirement with respect to
the foreign corporation;
3. A person who is treated as a
U.S. shareholder under section 953(c)
with respect to the foreign corporation;
4. A person who becomes a U.S.
person while meeting the 10% stock
ownership requirement with respect to
the foreign corporation; or
5. A U.S. person who disposes of
sufficient stock in the foreign
corporation to reduce his or her
interest to less than the 10% stock
ownership requirement.
For more information, see section
6046 and Regulations section
1.6046-1.
10% stock ownership requirement.
For purposes of Category 3, the stock
ownership threshold is met if a U.S.
person owns:
1. 10% or more of the total value
of the foreign corporation's stock, or
2. 10% or more of the total
combined voting power of all classes
of stock with voting rights.
See Regulations section
1.6046-1(i) for additional information.
U.S. person. For purposes of
Category 3, a U.S. person is:
1. A citizen or resident of the
United States;
2. A domestic partnership;
3. A domestic corporation; or
4. An estate or trust that is not a
foreign estate or trust, as defined in
section 7701(a)(31).
See Regulations section
1.6046-1(f)(3) for exceptions.
Additional Information for
Category 3 Filers
Statement required. Category 3
filers must attach a statement that
includes:
1. The amount and type of any
indebtedness the foreign corporation
has with the related persons
described in Regulations section
1.6046-1(b)(11), and
2.
The name, address, identifying
number, and number of shares
subscribed to by each suscriber to the
foreign corporation's stock.
Foreign sales corporations (FSCs).
Category 3 filers who are
shareholders, officers, and directors
of an FSC (as defined in section 922,
as in effect before its repeal) must file
Form 5471 and a separate
Schedule O to report changes in the
ownership of the FSC.
Category 3 Filers—Exception
From Filing
A Category 3 filer does not have to
file Form 5471 if all of the following
conditions are met.
1. The Category 3 filer does not
own a direct interest in the foreign
corporation.
2. The Category 3 filer is required
to furnish the information requested
solely because of constructive
ownership (as determined under
Regulations section 1.958-2,
1.6038-2(c), or 1.6046-1(i)) from
another U.S. person.
3. The U.S. person through which
the Category 3 filer constructively
owns an interest in the foreign
corporation files Form 5471 to report
all of the information required of the
Category 3 filer.
No statement is required to be
attached to tax returns for persons
claiming this constructive ownership
exception.
Other filing exceptions. Certain
other filing exceptions apply to all
categories of filers. See Additional
Filing Exceptions, later.
Category 4 Filer
This category includes a U.S. person
(defined below) who had control
(defined below) of a foreign
corporation during the annual
accounting period of the foreign
corporation.
U.S. person. For purposes of
Category 4, a U.S. person is:
1. A citizen or resident of the
United States;
2. A nonresident alien for whom an
election is in effect under section
6013(g) to be treated as a resident of
the United States;
3. An individual for whom an
election is in effect under section
6013(h), relating to nonresident aliens
who become residents of the United
States during the tax year and are
married at the close of the tax year to
a citizen or resident of the United
States;
4. A domestic partnership;
5. A domestic corporation; and
6. An estate or trust that is not a
foreign estate or trust, as defined in
section 7701(a)(31).
See Regulations section
1.6038-2(d) for exceptions.
Control. For purposes of Category 4,
a U.S. person has control of a foreign
corporation if, at any time during that
person's tax year, it owns stock
possessing:
1. More than 50% of the total
combined voting power of all classes
of stock of the foreign corporation
entitled to vote, or
2. More than 50% of the total
value of shares of all classes of stock
of the foreign corporation.
For purposes of Category 4, a
person in control of a corporation that,
in turn, owns more than 50% of the
combined voting power, or the value,
of all classes of stock of another
corporation is also treated as being in
control of such other corporation.
Example. Corporation A owns
51% of the voting stock in Corporation
B. Corporation B owns 51% of the
voting stock in Corporation C.
Corporation C owns 51% of the voting
stock in Corporation D. Therefore,
Corporation D is controlled by
Corporation A.
For more details on “control” for
purposes of Category 4, see section
6038(e)(2) and Regulations section
1.6038-2(b) and (c).
Additional Information for
Category 4 Filers
Foreign sales corporations (FSCs).
•
Category 4 filers who are
shareholders of an FSC are not
subject to the subpart F rules with
respect to the FSC for:
1. Exempt foreign trade income;
2. Deductions that are
apportioned or allocated to exempt
foreign trade income;
3. Nonexempt foreign trade
income (other than section 923(a)(2)
nonexempt income, within the
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meaning of section 927(d)(6), as in
effect before repeal); and
4. Any deductions that are
apportioned or allocated to the
nonexempt foreign trade income
described above.
•
Category 4 filers who are
shareholders of an FSC are subject to
the subpart F rules for:
1. All other types of FSC income
(including section 923(a)(2)
nonexempt income within the
meaning of section 927(d)(6), as in
effect before its repeal);
2. Investment income and carrying
charges (as defined in section 927(c)
and (d)(1), as in effect before its
repeal); and
3. All other FSC income that is not
foreign trade income or investment
income or carrying charges.
Category 4 Filers—Exceptions
From Filing
Certain constructive owners.
•
A Category 4 filer does not have to
file Form 5471 if all of the following
conditions are met.
1. The Category 4 filer does not
own a direct interest in the foreign
corporation.
2. The Category 4 filer is required
to furnish the information requested
solely because of constructive
ownership (as determined under
Regulations section 1.958-2,
1.6038-2(c), or 1.6046-1(i)) from
another U.S. person.
3. The U.S. person through which
the Category 4 filer constructively
owns an interest in the foreign
corporation files Form 5471 to report
all of the information required of the
Category 4 filer.
•
A Category 4 filer does not have to
file Form 5471 if it:
1. Does not own a direct or
indirect interest in the foreign
corporation, and
2. Is required to file Form 5471
solely because of constructive
ownership from a nonresident alien.
No statement is required to be
attached to the tax return of a
Category 4 filer claiming either
constructive ownership exception.
See Regulations section 1.6038-2(j)
(2) and (3), and Regulations section
1.6038-2(l) for additional information.
FSCs.
Category 4 filers are not
required to file a Form 5471 (in order
to satisfy the requirements of section
6038) if the FSC has filed a Form
1120-FSC. See Temporary
Regulations section 1.921-1T(b)(3).
However, these filers are required to
file Form 5471 for an FSC, regardless
of whether it has filed Form
1120-FSC, if the filer has inclusions
with respect to the FSC under section
951(a) (as described above).
Other filing exceptions. Certain
other filing exceptions apply to all
categories of filers. See
Additional
Filing Exceptions, later.
Category 5 Filers
In general, a Category 5 filer is a
person who was a U.S. shareholder
(defined below) that owned stock in a
foreign corporation that was a CFC
(defined below) at any time during the
foreign corporation’s tax year ending
with or within the U.S. shareholder’s
tax year, and who owned that stock on
the last day in that year in which the
foreign corporation was a CFC. There
are three different types of Category 5
filers, each described below:
Category 5a filers, Category 5b filers,
and Category 5c filers.
Except as otherwise provided in the
instructions for each type of Category
5 filer below, the following definitions
apply for purposes of Category 5.
U.S. shareholder. For purposes of
Category 5, a U.S. shareholder is a
U.S. person (defined below) who:
1. Owns (directly, indirectly, or
constructively, within the meaning of
section 958(a) and (b)) 10% or more
of the total combined voting power or
value of shares of all classes of stock
of a CFC; or
2. Owns (either directly or
indirectly, within the meaning of
section 958(a)) any stock of a CFC
(as defined in sections 953(c)(1)(B)
and 957(b)), unless the foreign
corporation has an effective section
953(c)(3)(C) election in place for the
tax year.
U.S. person. For purposes of
Category 5, a U.S. person is:
1. A citizen or resident of the
United States;
2. A domestic partnership;
3. A domestic corporation; or
4.
An estate or trust that is not a
foreign estate or trust, as defined in
section 7701(a)(31).
See section 957(c) for exceptions.
In general, a CFC is a foreign
corporation that has U.S.
shareholders that own (directly,
indirectly, or constructively, within the
meaning of section 958(a) and (b)) on
any day of the tax year of the foreign
corporation, more than 50% of:
1. The total combined voting
power of all classes of its voting stock,
or
2. The total value of the stock of
the corporation.
For purposes only of taking into
account income described in section
953(a) (relating to insurance income),
a CFC also includes a foreign
corporation that is described in
section 957(b); and for purposes only
of taking into account related person
insurance income, a CFC includes a
foreign corporation described in
section 953(c)(1)(B).
Category 5a Filer
A Category 5a filer is a Category 5
filer that is not a Category 5b or 5c
filer.
Category 5b Filer
A person is a Category 5b filer if they
are an unrelated section 958(a) U.S.
shareholder (defined below) of a
foreign-controlled CFC (defined
below). This type of Category 5 filer
implements the relief for certain
Category 5 filers announced in
section 8.02 of
Rev. Proc. 2019-40,
2019-43 I.R.B. 982.
Unrelated section 958(a) U.S.
shareholder. For purposes of
Category 5b, an unrelated section
958(a) U.S. shareholder is a U.S.
shareholder with respect to a
foreign-controlled CFC who:
1. Owns, within the meaning of
section 958(a), stock of a
foreign-controlled CFC; and
2. Is not related (using principles
of section 954(d)(3)) to the
foreign-controlled CFC.
Foreign-controlled CFC. For
purposes of Category 5b, a
foreign-controlled CFC is a foreign
corporation that is a CFC that would
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not be a CFC if the determination
were made without applying
subparagraphs (A), (B), and (C) of
section 318(a)(3) so as to consider a
U.S. person as owning stock that is
owned by a foreign person.
Category 5c Filer
A person is a Category 5c filer if they
are a related constructive U.S.
shareholder (defined below) of a
foreign-controlled CFC (defined
below). This type of Category 5 filer
implements the relief for certain
Category 5 filers announced in
section 8.03 of Rev. Proc. 2019-40,
2019-43 I.R.B. 982.
Related constructive U.S. share-
holder. For purposes of Category 5c,
a related constructive U.S.
shareholder is a U.S. shareholder with
respect to a foreign-controlled CFC
who:
1. Does not own, within the
meaning of section 958(a), stock of
the foreign-controlled CFC; and
2. Is related (using principles of
section 954(d)(3)) to the
foreign-controlled CFC.
Foreign-controlled CFC. For
purposes of Category 5c, the term
“foreign-controlled CFC” has the same
meaning as defined in
Category 5b
Filer, earlier.
Additional Information for
Category 5 Filers
Foreign sales corporations (FSCs).
•
Category 5 filers who are
shareholders of an FSC are not
subject to the subpart F rules with
respect to the FSC for:
1. Exempt foreign trade income;
2. Deductions that are
apportioned or allocated to exempt
foreign trade income;
3. Nonexempt foreign trade
income (other than section 923(a)(2)
nonexempt income, within the
meaning of section 927(d)(6), as in
effect before repeal); and
4. Any deductions that are
apportioned or allocated to the
nonexempt foreign trade income
described above.
•
Category 5 filers who are
shareholders of an FSC are subject to
the subpart F rules for:
1.
All other types of FSC income
(including section 923(a)(2)
nonexempt income, within the
meaning of section 927(d)(6), as in
effect before its repeal);
2. Investment income and carrying
charges (as defined in section 927(c)
and (d)(1), as in effect before its
repeal); and
3. All other FSC income that is not
foreign trade income or investment
income or carrying charges.
Category 5 Filers—Exceptions
From Filing
Certain constructive owners.
•
A Category 5 filer does not have to
file Form 5471 if all of the following
conditions are met.
1. The Category 5 filer does not
own a direct interest in the foreign
corporation.
2. The Category 5 filer is required
to furnish the information requested
solely because of constructive
ownership (as determined under
Regulations section 1.958-2,
1.6038-2(c), or 1.6046-1(i)) from
another U.S. person.
3. The U.S. person through which
the Category 5 filer constructively
owns an interest in the foreign
corporation files Form 5471 to report
all of the information required of the
Category 5 filer.
•
A Category 5 filer does not have to
file Form 5471 if it:
1. Does not own a direct or
indirect interest in the foreign
corporation, and
2. Is required to file Form 5471
solely because of constructive
ownership from a nonresident alien.
No statement is required to be
attached to the tax return of a
Category 5 filer claiming either
constructive ownership exception.
See Regulations section 1.6038-2(j)
(2) and (3), and Regulations section
1.6038-2(l) for additional information.
No section 958(a) U.S. sharehold-
er. A Category 5 filer does not have to
file Form 5471 if no U.S. shareholder
(including the Category 5 filer) owns,
within the meaning of section 958(a),
stock in the CFC on the last day in the
year of the foreign corporation in
which it was a CFC and the CFC is a
foreign-controlled CFC. See section
5.02 of
Notice 2018-13, 2018-6 I.R.B.
341, for additional information.
Unrelated constructive U.S. share-
holder. A Category 5 filer does not
have to file Form 5471 if
all of the
following conditions are met.
1. The foreign corporation is a
foreign-controlled CFC.
2. The filer is a U.S. shareholder
that does not own stock, within the
meaning of section 958(a), in the
foreign-controlled CFC.
3. The filer is not related, using
principles of section 954(d)(3), to the
foreign-controlled CFC.
See section 8.04 of Rev. Proc.
2019-40, 2019-43 I.R.B. 982, for
additional information.
FSCs. Category 5 filers are not
required to file a Form 5471 (in order
to satisfy the requirements of section
6038) if the FSC has filed a Form
1120-FSC. See Temporary
Regulations section 1.921-1T(b)(3).
However, these filers are required to
file Form 5471 for an FSC, regardless
of whether it has filed Form
1120-FSC, if the filer has inclusions
with respect to the FSC under section
951(a) (as described above).
Other filing exceptions. Certain
other filing exceptions apply to all
categories of filers. See Additional
Filing Exceptions next.
Additional Filing
Exceptions
Multiple filers of same information.
With respect to any category of filer,
one person may file Form 5471 and
the applicable schedules for other
persons who have the same filing
requirements. If you and one or more
other persons are required to furnish
information for the same foreign
corporation for the same period, a
joint information return that contains
the required information may be filed
with your tax return or with the tax
return of any one of the other persons.
For example, a U.S. person described
in Category 5 may file a joint Form
5471 with a Category 4 filer or another
Category 5 filer; similarly, a U.S.
person described in Category 5b may
file a joint Form 5471 with a Category
4 or 5a filer or another Category 5b
filer (but not a Category 5c filer).
However, for Category 3 filers, the
required information may only be filed
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by another person having an equal or
greater interest (measured in terms of
value or voting power of the stock of
the foreign corporation).
The person that files Form 5471
must complete Form 5471 in the
manner described in the instructions
for item H. All persons identified in
item H must attach a statement to
their income tax return that includes
the information described in the
instructions for item H. See
Regulations section 1.6038-2(j)(1)
and (3) for additional information.
Domestic corporations.
Shareholders are not required to file
Form 5471 for a foreign insurance
company that has elected (under
section 953(d)) to be treated as a
domestic corporation and has filed a
U.S. income tax return for its tax year
under that provision. See Rev. Proc.
2003-47, 2003-28 I.R.B. 55, available
at
IRS.gov/irb/
2003-28_IRB#RP-2003-47, for
procedural rules regarding the
election under section 953(d).
Additional Filing
Requirements
Section 338 election. If a section
338 election is made with respect to a
qualified stock purchase of a foreign
target corporation for which a Form
5471 must be filed:
•
A purchaser (or its U.S.
shareholder) must attach a copy of
Form 8883, Asset Allocation
Statement Under Section 338, to the
first Form 5471 for the new foreign
target corporation (see the
Instructions for Form 8883 for details);
•
A seller (or its U.S. shareholder)
must attach a copy of Form 8883 to
the last Form 5471 for the old foreign
target corporation;
•
A U.S. shareholder that files a
section 338 election on behalf of a
foreign purchasing corporation that is
a CFC pursuant to Regulations
section 1.338-2(e)(3) must attach a
copy of Form 8023, Elections Under
Section 338 for Corporations Making
Qualified Stock Purchases, to the
Form 5471 filed with respect to the
purchasing corporation for the tax
year that includes the acquisition date
(see the Instructions for Form 8023 for
details).
Reportable transaction disclosure
statement. If a U.S. shareholder of a
CFC is considered to have
participated in a reportable
transaction under the rules of
Regulations section 1.6011-4(c)(3)(i)
(G), the shareholder is required to
disclose information for each
reportable transaction. Form 8886,
Reportable Transaction Disclosure
Statement, must be filed for each tax
year indicated in Regulations section
1.6011-4(c)(3)(i)(G). The following are
reportable transactions.
1. Any listed transaction, which is
a transaction that is the same as or
substantially similar to one of the
types of transactions that the IRS has
determined to be a tax avoidance
transaction and identified by notice,
regulation, or other published
guidance as a listed transaction.
2. Any transaction offered under
conditions of confidentiality for which
the corporation (or a related party)
paid an advisor a fee of at least
$250,000.
3. Certain transactions for which
the corporation (or a related party)
has contractual protection against
disallowance of the tax benefits.
Filing Requirements for Categories of Filers
Table of Required Information
Required Information*
Category of Filer
1a 1b 1c 2 3 4 5a 5b 5c
The identifying information on page
1 of Form 5471 above Schedule A;
see Specific Instructions
Schedule A
Schedule B, Part I
Schedule B, Part II
Schedules C and F
Separate Schedule E
1 2 1 2
Schedule E-1 (included with
separate Schedule E)
1 1
Schedule G
Separate Schedule G-1
Separate Schedule H
Schedule I
Separate Schedule I-1
Separate Schedule J
Separate Schedule M
Separate Schedule O, Part I
Separate Schedule O, Part II
Separate Schedule P
Separate Schedule Q
Separate Schedule R
* See also Additional Filing Requirements.
1
Schedules E and E-1 are required for an Unrelated section 958(a) U.S. shareholder. only if the filer claims
deemed paid foreign income taxes of the foreign-controlled section 965 SFC or foreign-controlled CFC
under section 960 for the filer’s tax year. See Rev. Proc. 2019-40 for more details.
2
Related constructive U.S. shareholder. only need to complete Schedule E (they can leave Schedule E-1
blank). See Rev. Proc. 2019-40 for more details.
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4. Certain transactions resulting in
a loss of at least $10 million in any
single year or $20 million in any
combination of years.
5. Any transaction identified by the
IRS by notice, regulation, or other
published guidance as a “transaction
of interest.” See Notice 2009-55,
2009-31 I.R.B. 170, available at
IRS.gov/irb/
2009-31_IRB#NOT-2009-55.
For more information, see
Regulations section 1.6011-4. Also,
see the Instructions for Form 8886.
Penalties. The U.S. shareholder
may have to pay a penalty if it is
required to disclose a reportable
transaction under section 6011 and
fails to properly complete and file
Form 8886. Penalties may also apply
under section 6707A if the U.S.
shareholder fails to file Form 8886
with its income tax return, fails to
provide a copy of Form 8886 to the
Office of Tax Shelter Analysis (OTSA),
or files a form that fails to include all
the information required (or includes
incorrect information). Other
penalties, such as an
accuracy-related penalty under
section 6662A, may also apply. See
the Instructions for Form 8886 for
details on these and other penalties.
Reportable transactions by materi-
al advisors. Material advisors to any
reportable transaction must disclose
certain information about the
reportable transaction by filing Form
8918, Material Advisor Disclosure
Statement, with the IRS. For details,
see the Instructions for Form 8918.
Reporting other foreign financial
assets. If you have other foreign
financial assets, you may be required
to file Form 8938, Statement of
Specified Foreign Financial Assets.
However, you are not required to
report any items otherwise reported
on Form 5471 on that form. See the
Instructions for Form 8938 for more
information.
Penalties
Failure to file information required
by section 6038(a) (Form 5471 and
Schedule M).
•
A $10,000 penalty is imposed for
each annual accounting period of
each foreign corporation for failure to
furnish the information required by
section 6038(a) within the time
prescribed. If the information is not
filed within 90 days after the IRS has
mailed a notice of the failure to the
U.S. person, an additional $10,000
penalty (per foreign corporation) is
charged for each 30-day period, or
fraction thereof, during which the
failure continues after the 90-day
period has expired. The additional
penalty is limited to a maximum of
$50,000 for each failure.
•
Any person who fails to file or report
all of the information required within
the time prescribed will be subject to a
reduction of 10% of the foreign taxes
available for credit under sections 901
and 960. If the failure continues 90
days or more after the date the IRS
mails notice of the failure to the U.S.
person, an additional 5% reduction is
made for each 3-month period, or
fraction thereof, during which the
failure continues after the 90-day
period has expired. See section
6038(c)(2) for limits on the amount of
this penalty.
See Regulations sections 1.6038-1(j)
(4) and 1.6038-2(k)(3) for alleviation
of this penalty in certain cases.
Failure to file information required
by section 6046 and the related
regulations (Form 5471 and
Schedule O). Any person who fails
to file or report all of the information
requested by section 6046 is subject
to a $10,000 penalty for each such
failure for each reportable transaction.
If the failure continues for more than
90 days after the date the IRS mails
notice of the failure, an additional
$10,000 penalty will apply for each
30-day period, or fraction thereof,
during which the failure continues
after the 90-day period has expired.
The additional penalty is limited to a
maximum of $50,000. See section
6679.
Criminal penalties. Criminal
penalties under sections 7203, 7206,
and 7207 may apply for failure to file
the information required by sections
6038 and 6046.
Note. Any person required to file
Form 5471 and Schedule J, M, or O
who agrees to have another person
file the form and schedules for them
may be subject to the above penalties
if the other person does not file a
correct and proper form and schedule.
Section 6662(j).
Penalties may be
imposed for undisclosed foreign
financial asset understatements. No
penalty will be imposed with respect
to any portion of an underpayment if
the taxpayer can demonstrate that the
failure to comply was due to
reasonable cause with respect to
such portion of the underpayment and
the taxpayer acted in good faith with
respect to such portion of the
underpayment. See sections 6662(j)
and 6664(c) for additional information.
Inapplicability of certain penalties.
Certain penalties under sections 6038
and 6662 may be waived for certain
persons under Rev. Proc. 2019-40.
See section 7 of Rev. Proc. 2019-40
for more details.
Other Reporting
Requirements
Reporting exchange rates on Form
5471. When translating amounts from
functional currency to U.S. dollars,
you must use the method specified in
these instructions. For example, when
translating amounts to be reported on
Schedule E, you must generally use
the average exchange rate as defined
in section 986(a). But, regardless of
the specific method required, all
exchange rates must be reported
using a “divide-by convention”
rounded to at least four places. That
is, the exchange rate must be
reported in terms of the amount by
which the functional currency amount
must be divided in order to reflect an
equivalent amount of U.S. dollars. As
such, the exchange rate must be
reported as the units of foreign
currency that equal one U.S. dollar,
rounded to at least four places.
Do
not report the exchange rate as the
number of U.S. dollars that equal one
unit of foreign currency.
Note. You must round the result to
more than four places if failure to do
so would materially distort the
exchange rate or the equivalent
amount of U.S. dollars.
Example. During its annual
accounting period, the foreign
corporation paid income taxes of
30,255,400 Yen to Japan. The
Schedule E instructions specify that
the foreign corporation must translate
these amounts into U.S. dollars at the
average exchange rate for the tax year
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to which the tax relates in accordance
with the rules of section 986(a). The
average exchange rate is 108.8593
Japanese Yen to one U.S. dollar or
(0.009184) U.S. dollar to one
Japanese Yen. The foreign
corporation divides 30,255,400 Yen by
108.8593 to determine the U.S. dollar
amount to enter in column (l) of
Schedule E, Part I, Section 1, line 1.
Line 1 of Schedule E, Part I, Section
1, is completed in relevant part as
follows.
•
Enter the name of the payor entity in
column (a).
•
Enter the payor entity’s employer
identification number (EIN) or
reference ID number in column (b).
•
Enter “JA” in column (d).
•
Enter “JPY” in column (i).
•
Enter “30,255,400 Yen” in column
(j).
•
Enter “108.8593” in column (k).
•
Enter “277,931” in column (l).
Computer-Generated Form
5471 and Schedules
Generally, all computer-generated
forms must receive prior approval from
the IRS and are subject to an annual
review. However, see the Exception
below. Requests for approval may be
submitted electronically to
substitutef[email protected]v, or requests
may be mailed to:
Internal Revenue Service
Attention: Substitute Forms
Program
SE:W:CAR:MP:P:TP
1111 Constitution Ave. NW
Room 6554
Washington, DC 20224
Exception. If a computer-generated
Form 5471 and its schedules conform
to and do not deviate from the official
form and schedules, they may be filed
without prior approval from the IRS.
Important. Be sure to attach the
approval letter to Form 5471.
However, if the computer-generated
form is identical to the IRS-prescribed
form, it does not need to go through
the approval process, and an
attachment is not necessary.
Every year, the IRS issues a
revenue procedure to provide
guidance for filers of
computer-generated forms. In
addition, every year, the IRS issues
Pub. 1167, General Rules and
Specifications for Substitute Forms
and Schedules, which reprints the
most recent applicable revenue
procedure. Pub. 1167 is available at
IRS.gov/Pub. 1167.
Dormant Foreign Corporations
Rev. Proc. 92-70, 1992-2 C.B. 435,
provides a summary filing procedure
for filing Form 5471 for a dormant
foreign corporation (defined in section
3 of Rev. Proc. 92-70). This summary
filing procedure will satisfy the
reporting requirements of sections
6038 and 6046.
If you elect the summary
procedure, complete only page 1 of
Form 5471 for each dormant foreign
corporation as follows.
•
The top margin of the summary
return must be labeled “Filed Pursuant
to Rev. Proc. 92-70 for Dormant
Foreign Corporation.”
•
Include filer information such as
name and address, items A through
C, and tax year.
•
Include corporate information such
as the dormant corporation's annual
accounting period (below the title of
the form) and items 1a, 1b, 1c, and
1d.
For more information, see Rev. Proc.
92-70.
File this summary return in the
manner described under When and
Where To File, earlier.
Treaty-Based Return Positions
You are generally required to file Form
8833, Treaty-Based Return Position
Disclosure Under Section 6114 or
7701(b), to disclose a return position
that any treaty of the United States
(such as an income tax treaty; an
estate and gift tax treaty; or a
friendship, commerce, and navigation
treaty):
•
Overrides or modifies any provision
of the Internal Revenue Code; and
•
Causes, or potentially causes, a
reduction of any tax incurred at any
time.
See Form 8833 for exceptions.
Failure to make a required
disclosure may result in a $1,000
penalty ($10,000 for a C corporation).
See section 6712.
Section 362(e)(2)(C) Elections
The transferor and transferee in
certain section 351 transactions may
make a joint election under section
362(e)(2)(C) to limit the transferor's
basis in the stock received instead of
the transferee's basis in the
transferred property. The election is
made by a statement as provided in
Regulations section 1.362-4(d)(3).
Do not attach the statement
described above to Form
5471.
Corrections to Form 5471
If you file a Form 5471 that you later
determine is incomplete or incorrect,
file a corrected Form 5471 with an
amended tax return, using the
amended return instructions for the
return with which you originally filed
Form 5471. Enter “Corrected” at the
top of the form and attach a statement
identifying the changes.
Foreign Disregarded Entities
and Branches
If the foreign corporation for which you
are furnishing information is the tax
owner of a foreign disregarded entity
(FDE) or foreign branch (FB), or a
partner in a partnership, the amounts
reported on Form 8858, Schedules
K-1 and K-3 of Form 1065, or
Schedules K-1 and K-3 of Form 8865
must be included in determining the
amounts reported on Form 5471. The
“tax owner” of an FDE is the person
that is treated as owning the assets
and liabilities of the FDE for purposes
of U.S. income tax law.
Specific Instructions
Important. If the information required
in a given section exceeds the space
provided within that section,
do not
enter “See attached” in the section
and then attach all of the information
on additional sheets. Instead,
complete all entry spaces in the
section and attach the remaining
information on additional sheets. The
additional sheets must conform with
the IRS version of that section.
Identifying Information
Annual Accounting Period
Enter, in the space provided below the
title of Form 5471, the annual
accounting period of the foreign
corporation for which you are
furnishing information. Except for
information contained on Schedule O,
report information for the tax year of
the foreign corporation that ends with
CAUTION
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or within your tax year. When filing
Schedule O, report acquisitions,
dispositions, and organizations or
reorganizations that occurred during
your tax year.
Section 898 specified foreign cor-
poration (SFC). The annual
accounting period of an SFC (as
defined in section 898) is generally
required to be the tax year of the
corporation's majority U.S.
shareholder. If there is more than one
majority shareholder, the required tax
year will be the tax year that results in
the least aggregate deferral of income
to all U.S. shareholders of the foreign
corporation.
For these purposes, section 898(b)
defines an SFC as any foreign
corporation:
1. That is treated as a CFC for any
purpose under subpart F, and
2. In which more than 50% of the
total voting power or value of all
classes of stock of the corporation is
treated as owned by a U.S.
shareholder.
For more information, see section
898 and Rev. Proc. 2006-45, 2006-45
I.R.B. 851, available at
IRS.gov/irb/
2006-45_IRB#RP-2006-45, as
modified by Rev. Proc. 2007-64,
2007-42 I.R.B. 818, available at
IRS.gov/irb/
2007-42_IRB#RP-2007-64.
Name of Person Filing This
Return
The name of the person filing Form
5471 is generally the name of the U.S.
person described in the applicable
category or categories of filers (see
Categories of Filers, earlier). However,
in the case of a consolidated return,
enter the name of the U.S. parent in
the field for “Name of person filing this
return.” Be sure to list each U.S.
shareholder of the foreign corporation
in Schedule B, Part I.
Name change. If the name of either
the person filing the return or the
corporation whose activities are being
reported changed within the past 3
years, show the prior name(s) in
parentheses after the current name.
Address
Include the suite, room, or other unit
number after the street address. If the
post office does not deliver mail to the
street address and the U.S. person
has a P.O. box, show the box number
instead.
Foreign address. Enter the
information in the following order: city,
province or state, and country. Follow
the country's practice for entering the
postal code, if any. Do not abbreviate
the country name.
Item A—Identifying Number
The identifying number of an
individual is his or her social security
number (SSN). The identifying
number of all others is their EIN. If a
U.S. corporation that owns stock in a
foreign corporation is a member of a
consolidated group, list the common
parent as the person filing the return
and enter its EIN in item A.
Item B—Category of Filer
Complete item B to indicate the
category or categories that describe
the person filing this return. If more
than one category applies, check all
boxes that apply. See Categories of
Filers, earlier.
Note. If you satisfy the requirements
of both Category 4 and Category 5a
filers, only check the box for Category
4 and leave the box for Category 5a
blank.
Item C—Percentage of Voting
Stock Owned
Enter the total percentage of the
foreign corporation's voting power you
owned directly, indirectly, or
constructively at the end of the
corporation's annual accounting
period.
Item D—Final Year
Check the item D checkbox only if this
is the final year of the foreign
corporation's existence as a
corporation for federal tax purposes,
for example, if a reorganization has
occurred, a complete liquidation has
occurred, or an election to treat the
foreign corporation as a disregarded
entity has been made. If this item D is
checked, complete Schedule O.
Item E—Excepted Specified
Foreign Financial Assets
Check the item E checkbox if any
excepted specified foreign financial
assets are reported on Form 5471. If
this is the case, you do not have to
also report these assets on Form
8938. It is only necessary to complete
Form 8938, Part IV, line 17. For more
information, see the Instructions for
Form 8938, generally, and in
particular, Duplicative Reporting and
the specific instructions for Part IV,
Excepted Specified Foreign Financial
Assets.
Item F—Alternative Information
Under Rev. Proc. 2019-40
Check the item F checkbox if Form
5471 has been completed using
alternative information (as defined in
section 3.01 of Rev. Proc. 2019-40).
Section 5 of Rev. Proc. 2019-40
provides a safe harbor for determining
certain items, including taxable
income and E&P, of certain CFCs
based on alternative information.
Specifically, in the case of a
foreign-controlled CFC with respect to
which there is no related section
958(a) U.S. shareholder, if information
satisfying the requirements of
Regulations section 1.952-2(a), (b),
and (c)(2) and section 964 and the
regulations thereunder is not readily
available to an unrelated section
958(a) U.S. shareholder or an
unrelated constructive U.S.
shareholder with respect to the
foreign-controlled CFC, an amount
reported on a Form 5471 may be
determined by the unrelated section
958(a) U.S. shareholder or the
unrelated constructive U.S.
shareholder, as applicable, on the
basis of alternative information
(without adjustments other than those
described in section 3.01(b) and 3.10
of the revenue procedure) with
respect to the foreign-controlled CFC.
See section 3 of Rev. Proc. 2019-40
for definitions of terms.
Section 6 of Rev. Proc. 2019-40
provides a safe harbor for determining
certain items of certain SFCs based
on alternative information. Specifically,
in the case of an SFC, other than
either a foreign-controlled CFC with
respect to which there is no related
section 958(a) U.S. shareholder or a
U.S. controlled CFC, if information
satisfying the requirements of section
964 and the regulations thereunder is
not readily available to an unrelated
section 958(a) U.S. shareholder or an
unrelated constructive U.S.
shareholder with respect to the SFC,
an amount reported on a Form 5471
may be determined by the unrelated
section 958(a) U.S. shareholder or the
unrelated constructive U.S.
shareholder, as applicable, on the
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basis of alternative information
(without adjustments other than those
described in sections 3.01(b) and
3.10 of the revenue procedure) with
respect to the SFC. See section 3 of
Rev. Proc. 2019-40 for definitions of
terms.
Item G—Alternative Information
Code
If the item F checkbox is checked,
enter the applicable code from the list
provided below.
01
Audited separate-entity financial
statements of the foreign corporation that
are prepared in accordance with U.S.
generally accepted accounting principles
(U.S. GAAP).
02
Audited separate-entity financial
statements of the foreign corporation that
are prepared on the basis of international
financial reporting standards (IFRS).
03
Audited separate-entity financial
statements of the foreign corporation that
are prepared on the basis of the generally
accepted accounting principles of the
jurisdiction in which the foreign
corporation is organized (“local-country
GAAP”).
04
Unaudited separate-entity financial
statements of the foreign corporation that
are prepared in accordance with U.S.
GAAP.
05
Unaudited separate-entity financial
statements of the foreign corporation that
are prepared on the basis of IFRS.
06
Unaudited separate-entity financial
statements of the foreign corporation that
are prepared on the basis of local-country
GAAP.
07
Separate-entity records used by the
foreign corporation for tax reporting.
08
Separate-entity records used by the
foreign corporation for internal
management controls or regulatory or
other similar purposes.
Information described in a code
listed above qualifies as alternative
information only if information
described in any preceding code is
not “readily available” (as defined in
section 3.04 of Rev. Proc. 2019-40).
For example, information described in
code 03 above qualifies as alternative
information only if information
described in codes 01 and 02 is not
readily available.
For more information, see Rev.
Proc. 2019-40.
Item H—Person(s) on Whose
Behalf This Information Return
Is Filed
One person may file Form 5471 and
the applicable schedules for other
persons who have the same filing
requirements. See
Multiple filers of
same information, earlier. The person
that files the required information on
behalf of other persons must
complete a joint Form 5471 according
to the applicable column(s) of the
Filing Requirements for Categories of
Filers, earlier. This includes
completing item H on page 1 of the
form. When completing item H with
respect to members of a consolidated
group, identify only the direct owners
in item H (constructive owners are not
required to be listed).
A separate Schedule I must be filed
for each person described in Category
4, 5a, or 5b. For each Category 4, 5a,
or 5b filer that is required to file a
Schedule I, send a copy of their
separate Schedule I to them to assist
them in completing their tax return.
A separate Worksheet H-1 must be
attached for each person described in
Category 4, 5a, 5b, or 5c. For each
Category 4, 5a, 5b, or 5c filer that is
required to file Worksheet H-1, send a
copy of their separate Worksheet H-1
to them to assist them in completing
their tax return.
Note. New Worksheet H-1 may be
found later in these instructions. See
Worksheet H-1 and Worksheet H-1
Instructions, later.
Filing requirements for persons
identified in item H. Except for
members of the filer's consolidated
return group, all persons identified in
item H must attach a statement to
their tax returns that includes the
following information.
•
The name, address, and EIN (or
reference ID number) of the foreign
corporation(s).
•
A statement that their filing
requirements with respect to the
foreign corporation(s) have been or
will be satisfied.
•
The name, address, and identifying
number of the taxpayer on the return
with which the information was or will
be filed.
•
The IRS Service Center where the
return was or will be filed. If the return
was or will be filed electronically, enter
“e-file.”
Exception.
If the person who is filing
Form 5471 on behalf of others is
married to a person identified in item
H and they are filing Form 1040 jointly,
the statement described above does
not have to be attached to the jointly
filed Form 1040.
All persons identified in item H
must complete a separate
Schedule P (Form 5471) if the
person is a U.S. shareholder
described in Category 1a, 1b, 4, 5a, or
5b. In such a case, the Schedule P
must be attached to the statement
described above.
Item 1b(2)—Reference ID
Number
A reference ID number (defined
below) is required in item 1b(2) only in
cases where no EIN was entered in
item 1b(1) for the foreign corporation.
However, filers are permitted to enter
both an EIN in item 1b(1) and a
reference ID number in item 1b(2). If
applicable, enter the reference ID
number you have assigned to the
foreign corporation identified in item
1a.
A “reference ID number” is a
number established by or on behalf of
the U.S. person identified at the top of
page 1 of the form that is assigned to
a foreign corporation with respect to
which Form 5471 reporting is
required. These numbers are used to
uniquely identify the foreign
corporation in order to keep track of
the corporation from tax year to tax
year.
The reference ID number must
meet the requirements set forth below.
Note. Because reference ID numbers
are established by or on behalf of the
U.S. person filing Form 5471, there is
no need to apply to the IRS to request
a reference ID number or for
permission to use these numbers.
Note. The reference ID number
assigned to a foreign corporation on
Form 5471 generally has relevance
only on Form 5471, its schedules, and
any other form that is attached to or
associated with Form 5471, and
generally should not be used with
respect to that foreign corporation on
any other IRS forms. However, the
foreign corporation’s reference ID
number should also be entered on
Form 8858 if the foreign corporation is
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listed as a tax owner of an FDE or FB
on Form 8858. See the instructions for
Form 8858, line 3c(2), for more
information. Also, if a U.S. shareholder
is required to file Schedule A (Form
8992) or Schedule B (Form 8992) with
respect to the CFC, the reference ID
number on Form 5471 and the
reference ID number used on
Schedule A (Form 8992) or
Schedule B (Form 8992) for that CFC
must be the same.
Requirements. The reference ID
number that is entered in item 1b(2)
must be alphanumeric (defined below)
and no special characters or spaces
are permitted. The length of a given
reference ID number is limited to 50
characters.
The same reference ID number
must be used consistently from tax
year to tax year with respect to a given
foreign corporation. If for any reason a
reference ID number falls out of use
(for example, the foreign corporation
no longer exists due to disposition or
liquidation), the reference ID number
used for that foreign corporation
cannot be used again for another
foreign corporation for purposes of
Form 5471 reporting.
For these purposes, the term
“alphanumeric” means the entry can
be alphabetical, numeric, or any
combination of the two.
Taxpayers no longer have the
option of entering “FOREIGNUS” or
“APPLIED FOR” in a column that
requests an EIN or reference ID
number with respect to a foreign
entity. Instead, if the foreign entity
does not have an EIN, the taxpayer
must enter a reference ID number that
uniquely identifies the foreign entity.
Correlation issues. There are some
situations that warrant correlation of a
new reference ID number with a
previous reference ID number when
assigning a new reference ID number
to a foreign corporation. For example:
•
In the case of a merger or
acquisition, a Form 5471 filer must
use a reference ID number that
correlates the previous reference ID
number with the new reference ID
number assigned to the foreign
corporation; or
•
In the case of an entity
classification election that is made on
behalf of a foreign corporation on
Form 8832, Regulations section
301.6109-1(b)(2)(v) requires the
foreign corporation to have an EIN for
this election. For the first year that
Form 5471 is filed after an entity
classification election is made on
behalf of the foreign corporation on
Form 8832, the new EIN must be
entered in item 1b(1) of Form 5471
and the old reference ID number must
be entered in item 1b(2). In
subsequent years, the Form 5471 filer
may continue to enter both the EIN in
item 1b(1) and the reference ID
number in item 1b(2), but must enter
at least the EIN in item 1b(1).
You must correlate the reference ID
numbers as follows: Enter the new
reference ID number in item 1b(2) and
enter the previous reference ID
number(s) in item 1b(3). If there is
more than one old reference ID
number, you must enter a space
between each such number. As
indicated above, the length of a given
reference ID number is limited to 50
characters and each number must be
alphanumeric and no special
characters are permitted.
Note. This correlation requirement
applies only to the first year the new
reference ID number is used and it
applies only on Form 5471, page 1,
items 1b(2) and 1b(3). On all separate
schedules for Form 5471, please
enter only the current reference ID
number in the applicable entry space.
Item 1b(3)—Previous Reference
ID Number(s), if Any
See Correlation issues, earlier.
Items 1f and 1g—Principal
Business Activity
Enter the principal business activity
code number and the description of
the activity from the list at the end of
these instructions.
Effective beginning with tax
year 2022, several changes
were made to the principal
business activities and codes listed at
the end of these instructions. See the
revised list before entering a six-digit
code and the description of the
activity on page 1, items 1f and 1g.
Item 1h—Functional Currency
The foreign corporation's functional
currency is determined under section
985. Enter the applicable
three-character alphabet code for the
foreign corporation's functional
currency using the ISO 4217
CAUTION
!
standard. These codes are available
at six-group.com/en/products-
services/financial-information/data-
standards.html#scrollTo=currency-
codes. Click on List One (XLS).
Regulations sections 1.6038-2(h)
and 1.6046-1(g) require that certain
amounts be reported in U.S. dollars
and/or in the foreign corporation's
functional currency. The specific
instructions for the affected schedules
state these requirements.
Special rules apply for foreign
corporations that use the U.S. dollar
approximate separate transactions
method of accounting (DASTM) under
Regulations section 1.985-3. See
Schedule C, Schedule F, and
Schedule H, later.
Schedule B
Note. If any person (including the
filer) is both a U.S. shareholder and a
direct shareholder of the foreign
corporation, that person’s information
should be provided in both
Schedule B, Part I and Part II.
Part I
Category 3 and 4 filers must complete
Schedule B, Part I, for U.S. persons
that owned (at any time during the
annual accounting period), directly or
indirectly through foreign entities, 10%
or more of the total combined voting
power of all classes of stock entitled
to vote of the foreign corporation, or
10% or more of the total value of
shares of all classes of stock of the
foreign corporation.
A person that is both a category 3
and category 5 filer because it is
treated as a U.S. shareholder under
section 953(c)(1)(A) with respect to
the foreign corporation must complete
Schedule B, Part I, for U.S. persons
that owned (on the last day of the
foreign corporation’s tax year), directly
or indirectly through foreign entities,
any of the foreign corporation's
outstanding stock.
Column (e). Enter each
shareholder's allocable percentage of
the foreign corporation's subpart F
income.
Part II
Category 1a, 1c, 3, 4, 5a, and 5c filers
must complete Part II.
Report the direct shareholders of
the foreign corporation. In the case of
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a CFC owned by an FDE, please
include the information of the FDE and
the regarded entity owner. Indicate the
regarded entity owner's name in
parentheses after the FDE's name. If
there is more than one regarded entity
owner, use separate lines for each,
listing each regarded entity owner in
column (a) and reporting the
information requested in columns (b),
(c), and (d) for each such regarded
entity owner.
Category 4 filers should list all
direct owners of the CFC. Category
1a, 3, and 5a filers should list all direct
owners of the SFC or CFC through
which such filer indirectly owns the
SFC or CFC as described in section
958(a)(2). Category 1c and 5c filers
should list all direct owners of the SFC
or CFC from which such filer is
attributed ownership in the SFC or
CFC as described in section 958(b). If
the filer is a direct owner, include the
filer's direct ownership.
Schedule C
Report all information in the foreign
corporation's functional currency in
accordance with U.S. GAAP and
translate using U.S. GAAP translation
principles.
If the foreign corporation uses the
DASTM under Regulations section
1.985-3, the functional currency
column should reflect local
hyperinflationary currency amounts
computed in accordance with U.S.
GAAP. The U.S. dollar column should
reflect such amounts translated into
dollars under U.S. GAAP translation
rules. Differences between this U.S.
dollar GAAP column and the U.S.
dollar income or loss figured for tax
purposes under Regulations section
1.985-3(c) should be accounted for on
Schedule H. See
Schedule H, Special
rules for DASTM, later.
Line 8. Enter foreign currency
transaction gain or loss reported on
the income statement. For amounts
included in Other Comprehensive
Income (OCI), see Lines 23 and 24,
later. Enter unrealized gain or loss on
line 8a and realized gain or loss on
line 8b.
Line 16. Enter transactional taxes
excluding items reportable in income
tax expense (benefit). Report income
taxes on line 21.
Line 20.
The term “unusual or
infrequently occurring items” is
defined by U.S. GAAP (see FASB
Accounting Standards Codification
(ASC) Topic 220 (Income Statement),
Subtopic 220-20 (Unusual or
Infrequently Occurring Items) or
subsequent guidance). If “prior period
adjustments” are not reported
separately on the income statement,
do not report such amounts on this
line item (see ASC 250 (Accounting
Changes and Error Corrections) or
subsequent guidance).
Line 21. Enter income tax expense
(benefit) reported in accordance with
U.S. GAAP (ASC 740 (Income
Taxes)). Income tax expense (benefit)
includes current and deferred income
tax expense (benefit). It may also
reflect uncertain tax positions (ASC
740-10) and would not include taxes
paid in respect of uncertain tax
positions recorded in prior years.
Enter the current income tax expense
(benefit) on line 21a and deferred
income tax expense (benefit) on
line 21b.
Note. If there is an income tax
expense amount on line 21a or 21b,
subtract that amount from the line 19
net income or (loss) amount in arriving
at line 22 current year net income or
(loss) per the books. If there is an
income tax benefit amount on line 21a
or 21b, add that amount to the line 19
net income or (loss) amount in arriving
at line 22 current year net income or
(loss) per the books.
Lines 23 and 24. Enter amounts
defined in ASC 220 (Income
Statement—Reporting
Comprehensive Income).
Line 23a. Enter foreign currency
translation adjustments before the
income tax expense (benefit) is
allocated.
Line 23b. Enter other
comprehensive income such as
foreign currency gains or losses on
certain hedging transactions,
pensions and other post-retirement
benefits, and certain investments
available-for-sale.
Line 23c. Enter the income tax
expense (benefit) allocated to OCI
items in the intraperiod allocation.
Important. Differences between the
functional currency amount of income
tax expense (benefit) reported on
line 21 and the amount of taxes that
reduce or increase U.S. E&P should
be accounted for on line 2g of
Schedule H.
Schedule F
Report all information in U.S. dollars.
Generally, the foreign corporation's
balance sheet is prepared in
functional currency and translated to
U.S. dollars using U.S. GAAP
translation rules. If the foreign
corporation uses DASTM, the tax
balance sheet on Schedule F should
be prepared and translated into U.S.
dollars according to Regulations
section 1.985-3(d), rather than U.S.
GAAP.
Lines 3 and 17. Enter the total asset
amount of derivatives on line 3 and
total amount of liability on line 17
reported in accordance with ASC 815
(Derivatives and Hedging). Do not net
positions.
Include all derivatives, both
short-term and long-term.
Schedule G
Note. Category 1b and 5b filers are
not required to file Schedule G for
foreign-controlled section 965 SFCs
and foreign-controlled CFCs,
respectively.
Question 1
If the foreign corporation owned at
least a 10% interest, directly or
indirectly, in any foreign partnership,
attach a statement listing the following
information for each foreign
partnership.
1. Name and EIN (if any) of the
foreign partnership.
2. Identify which, if any, of the
following forms the foreign partnership
filed for its tax year ending with or
within the corporation's tax year: Form
1042, 1065, or 8804.
3. Name of the partnership
representative (if any).
4. Beginning and ending dates of
the foreign partnership's tax year.
Question 3
Check the “Yes” box if the foreign
corporation is the tax owner of an FDE
or FB. The “tax owner” of an FDE is
the person that is treated as owning
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the assets and liabilities of the FDE for
purposes of U.S. income tax law.
If the foreign corporation is the tax
owner of an FDE or FB and you are a
Category 4, 5a, or 5c filer of Form
5471, you are required to attach Form
8858 to Form 5471. If you are required
to attach Form 8858 to Form 5471, the
amounts reported on certain
schedules on Form 8858 must be
included in determining the amounts
reported on the equivalent schedules
as follows.
IF amounts were reported
on...
THEN take those
amounts into account
(converting from
GAAP to tax as
necessary) when
determining the
amounts to be
reported on...
Form 8858, Schedule C Form 5471,
Schedule C.
Form 8858, Schedule F Form 5471,
Schedule F.
Form 8858, Schedule H Schedule H (Form
5471).
Form 8858, Schedule J Schedules E and E-1
(Form 5471).
Schedule M (Form 8858) Schedule M (Form
5471).
If the foreign corporation is the tax
owner of an FDE or FB and you are
not a Category 1b, 4, or 5 filer of Form
5471, you must attach the statement
described below in lieu of Form 8858.
Statement in lieu of Form 8858.
This statement must list the name of
the FDE or FB, country under whose
laws the FDE or FB was organized,
and EIN (if any) of the FDE or FB.
Questions 4b and 4c
Complete lines 4b and 4c if:
1. The foreign corporation is a
related party to the U.S. filer within the
meaning of section 59A(g); and
2. The U.S. filer made or accrued
a base erosion payment to, or has a
base erosion tax benefit with respect
to, the foreign corporation.
The term “base erosion payment”
generally means any amount paid or
accrued by the U.S. filer to a foreign
corporation that is a related party to
the U.S. filer within the meaning of
section 59A(g) and with respect to
which a U.S. deduction is allowed
under chapter 1 of the Code. See
section 59A(d)(1). Base erosion
payments also include amounts
received or accrued by the foreign
corporation in connection with the
acquisition of depreciable or
amortizable property (section 59A(d)
(2)), reinsurance payments (section
59A(d)(3)), and certain payments
relating to expatriated entities (section
59A(d)(4)).
The term “base erosion tax benefit”
generally means any U.S. deduction
that is allowed under chapter 1 for the
tax year with respect to any base
erosion payment. See section 59A(c)
(2)(A) and (B) for further details.
Questions 5a and 5b
If the foreign corporation paid or
accrued any interest or royalty
(including in the case of a foreign
corporation that is a partner in a
partnership, the foreign corporation’s
allocable share of interest or royalty
paid by the partnership) for which a
deduction is disallowed under section
267A, check “Yes” for question 5a and
enter the total amount for which a
deduction is not allowed on line 5b.
The amount reported on line 5b
should not include disallowed
deductions attributable to interest or
royalty paid or accrued by a U.S.
taxable branch of the foreign
corporation; such amounts are
reported on Form 1120-F.
Interest or royalty paid or accrued
by a foreign corporation (including
through a partnership) is subject to
section 267A, provided in general that
the foreign corporation is a CFC (and
there are one or more U.S. tax
residents that own directly or indirectly
at least 10% of the stock of the CFC).
Section 267A disallows a deduction
for certain interest or royalty paid or
accrued pursuant to a hybrid
arrangement, to the extent that, under
the foreign tax law, there is not a
corresponding income inclusion
(including long-term deferral). For
more detailed instructions, see the
instructions for Form 1120,
Schedule K, Question 21.
Question 6
Check the “Yes” box on line 6a if the
filer is claiming a deduction under
section 250 with respect to
foreign-derived intangible income
(FDII), and enter the amounts
requested on lines 6b, 6c, and 6d.
Enter U.S. dollar amounts on lines 6b,
6c, and 6d, translated from functional
currency at the average exchange rate
for the foreign corporation's tax year
(see section 989(b)). See Form 8993
and its instructions for information on
the section 250 deduction. If no
deduction is being claimed, check the
“No” box on line 6a and go to line 7.
Question 9a
Under section 367(d), a U.S.
transferor must report an annual
income inclusion attributed to the
intangible property transferred to a
foreign corporation over the useful life
of the property. Check “Yes” if the
foreign corporation received any
intangible property in a prior year or
the current tax year in an exchange
under section 351 or section 361 from
a U.S. transferor that is required to
report a section 367(d) annual income
inclusion for the tax year. If “Yes,”
complete line 9b.
Question 9b
Enter in functional currency the
amount of the E&P reduction made by
the foreign corporation for the current
tax year that equals the amount
required to be included in the income
of the U.S. transferor. See section
367(d). This amount should also be
entered on Schedule H (Form 5471),
Current Earnings and Profits, as a net
subtraction on line 2i.
Question 10
A foreign corporation may qualify as
an expatriated foreign subsidiary
under Regulations section
1.7874-12(a)(9) if such foreign
corporation is a CFC with respect to
which an expatriated entity, as defined
in Regulations section 1.7874-12(a)
(8), is a U.S. shareholder. Certain
transactions involving an expatriated
foreign subsidiary and/or its U.S.
shareholders may be subject to
special rules. If the answer to
Question 10 is “Yes,” attach a
statement providing the name and
EIN of the domestic corporation or
partnership, as defined in Regulations
section 1.7874-12(a)(6), and the
relationship of the foreign corporation
to the domestic corporation or
partnership.
Question 14
Check the “Yes” box on line 14 if you
answer “Yes” to any of the 22
questions in the Schedule G, Line 14
table below. If “Yes,” enter the
corresponding code(s) from the table
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in the entry space provided on line 14
of the form. Enter the applicable
corresponding code in capital letters.
Enter a space between each code.
Also attach the statement described in
the table below.
Form 5471, Schedule G, Line 14
Question See Worksheet A in
the Schedule I
instructions
If “Yes,”
corresponding
code to enter
on Schedule G,
line 14
Code
description
If “Yes,” content of
statement to be
attached to Form
5471
1 During the tax year, was the sum of the CFC’s foreign base
company income (determined without regard to deductions)
and gross insurance income less than the lesser of 5% of
gross income or $1 million?
In other words, is
line 7 less than line 8
and less than $1
million?
DM De minimis Amount excluded by
reason of the de
minimis rule (but
only to the extent not
already included in
amounts below)
2 During the tax year, did the CFC receive any item of income
that was subject to an effective rate of income tax imposed by a
foreign country greater than 90% of the maximum rate of tax
specified in section 11?
In other words, is
line 13g, 14d, 15d,
16d, 18d, or 19d of
Worksheet A greater
than zero?
HT High tax Sum of the amounts
from lines 13g, 14d,
15d, 16d, 18d, and
19d
3 During the tax year, was the CFC’s foreign personal holding
company income, foreign base company sales income, or
foreign base company services income reduced so as to take
into account any deductions (including taxes)?
In other words, is
line 13b, 13d, 13e,
14b, 15b, or 16b of
Worksheet A greater
than zero?
DED Deductions
taken into
account
Sum of the amounts
from lines 13b, 13d,
13e, 14b, 15b, and
16b
4 During the tax year, did the CFC have any gains or losses that
(a) arise out of commodity hedging transactions; (b) are active
business gains or losses from the sale of commodities (and
substantially all of the corporation’s commodities are property
described in section 1221(a)(1), (2), or (8)); or (c) are foreign
currency gains or losses (as defined in section 988(b))
attributable to any section 988 transactions?
In other words, are
any amounts
described in section
954(c)(1)(C)(i), (ii), or
(iii) excluded from
line 1c of Worksheet
A?
AHC Active/
hedging
commodities
Sum of the excluded
amounts described
in section 954(c)(1)
(C)(i), (ii), and (iii)
5 During the tax year, did the CFC have excess foreign currency
gains over foreign currency losses (as defined in section
988(b)) attributable to any section 988 transaction directly
related to the business needs of the foreign corporation?
In other words, are
any amounts
excluded from line 1d
of Worksheet A by
reason of being
attributable to a
transaction(s) directly
related to the
business needs of
the foreign
corporation?
BN Business
needs
Amount excluded
6 During the tax year, did the CFC receive, from a person other
than a related person within the meaning of section 954(d)(3),
rents or royalties that were derived in the active conduct of a
trade or business?
In other words, are
any amounts
described in section
954(c)(2)(A)
excluded from line 1a
of Worksheet A?
ARR Active rents/
royalties
Amount excluded
7 During the tax year, did the CFC derive, in the conduct of a
banking business, interest that is export financing interest?
In other words, are
any amounts
described in section
954(c)(2)(B)
excluded from line 1a
of Worksheet A?
EF Certain
export
financing
Amount excluded
8 During the tax year, was the CFC a regular dealer in property
described in section 954(c)(1)(B), forward contracts, option
contracts, or similar financial instruments (including notional
principal contracts and all instruments referenced to
commodities)? If so, did the foreign corporation derive any
item of income, gain, deduction, or loss (other than any item
described in section 954(c)(1)(A), (E), or (G)) from any
transaction entered into in the ordinary course of its trade or
business as a regular dealer?
In other words, are
any amounts
described in section
954(c)(2)(C)(i)
excluded from line 1a
of Worksheet A?
RD Regular
dealers
Amount excluded
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Form 5471, Schedule G, Line 14 (continued)
Question See Worksheet A in
the Schedule I
instructions
If “Yes,”
corresponding
code to enter
on Schedule G,
line 14
Code
description
If “Yes,” content
of statement to be
attached to Form
5471
9 During the tax year, was the CFC a securities dealer within the
meaning of section 475? If so, did the foreign corporation
derive any interest or dividend or equivalent amount described
in section 954(c)(1)(E) or (G) from any transaction entered into
in the ordinary course of its trade or business as a securities
dealer?
In other words, are
any amounts
described in section
954(c)(2)(C)(ii)
excluded from line 1a
of Worksheet A?
SD Securities
dealers
Amount excluded
10 During the tax year, did the CFC receive dividends* or
interest** from a related person that (a) is a corporation created
or organized under the laws of the same country under the
laws of which the CFC is created or organized, and (b) has a
substantial part of its assets used in its trade or business
located in the same foreign country?
*Dividends (other than dividends with respect to any stock,
which are attributable to E&P of the distributing corporation
accumulated during any period during which the person
receiving such dividend did not hold such stock directly or
indirectly through a chain of one or more subsidiaries each of
which meets requirements (a) and (b)).
**Interest (other than interest that reduces the payor's subpart
F income or creates or increases a deficit that may reduce the
subpart F income of the payor or another CFC).
In other words, are
any amounts
described in section
954(c)(3)(A)(i)
excluded from line 1a
of Worksheet A?
SCDI Same country
dividends/
interest
Amount excluded
11 During the tax year, did the CFC receive, from a corporation
that is a related person, rents or royalties* for the use of, or
privilege of using, property within the country under the laws of
which the CFC is created or organized?
*Rents or royalties (other than rents or royalties that reduce the
payor's subpart F income or create or increase a deficit that
may reduce the subpart F income of the payor or another CFC).
In other words, are
any amounts
described in section
954(c)(3)(A)(ii)
excluded from line 1a
of Worksheet A?
SCRR Same country
rents/royalties
Amount excluded
12 During the tax year, did the CFC receive or accrue from a
related CFC dividends, interest (including factoring income
treated as income equivalent to interest for purposes of section
954(c)(1)(E)), rents, or royalties* attributable or properly
allocable to income of the related person which is neither
subpart F income nor income treated as effectively connected
with the conduct of a trade or business in the United States?
*Interest, rents, or royalties (other than interest, rents, or
royalties that create or increase a deficit that may reduce the
subpart F income of the payor or another CFC).
In other words, are
any amounts
excluded from line 1a
of Worksheet A by
reason of the
look-through rule
described in section
954(c)(6)?
LT Look through Amount excluded
13 During the tax year, did the CFC derive income (either directly
or through a branch or similar establishment, for example, a
disregarded entity) in connection with the purchase or sale
from, to, or on behalf of a related person, of agricultural
commodities not grown in the United States in commercially
marketable quantities?
In other words, are
any amounts
excluded from line 3
of Worksheet A by
reason of the special
rule in Regulations
section 1.954-3(a)(1)
(ii)?
AC Agricultural
commodities
Amount excluded
14 During the tax year, did the CFC derive income (either directly
or through a branch or similar establishment, for example, a
disregarded entity) in connection with the purchase or sale
from, to, or on behalf of a related person, of personal property
manufactured in the same country under the laws of which the
CFC is created or organized?
In other words, are
any amounts that are
derived in connection
with property that
does not satisfy
section 954(d)(1)(A)
excluded from line 3
of Worksheet A (that
is, income excluded
by reason of
Regulations section
1.954-3(a)(2))?
SCM Same country
manufacturing
Amount excluded
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Form 5471, Schedule G, Line 14 (continued)
Question See Worksheet A in
the Schedule I
instructions
If “Yes,”
corresponding
code to enter
on Schedule G,
line 14
Code
description
If “Yes,” content
of statement to be
attached to Form
5471
15 During the tax year, did the CFC derive income (either directly
or through a branch or similar establishment, for example, a
disregarded entity) in connection with the purchase or sale
from, to, or on behalf of a related person, of personal property
purchased or sold for use or consumption in the same country
under the laws of which the CFC is created or organized?
In other words, are
any amounts that are
derived in connection
with property that
does not satisfy
section 954(d)(1)(B)
excluded from line 3
of Worksheet A (that
is, income excluded
by reason of
Regulations section
1.954-3(a)(3))?
SCSU Same country
sales/use
Amount excluded
16 During the tax year, did the CFC derive income (either directly
or through a branch or similar establishment, for example, a
disregarded entity) in connection with the purchase or sale
from, to, or on behalf of a related person, of personal property
manufactured by the CFC within the meaning of Regulations
section 1.954-3(a)(4)(ii) or (iii)?
In other words, are
any amounts
excluded from line 3
of Worksheet A by
reason of
Regulations section
1.954-3(a)(4)(ii) or
(iii)?
PM Physical
manufacturing
Amount excluded
17 During the tax year, did the CFC derive income (either directly
or through a branch or similar establishment, for example, a
disregarded entity) in connection with the purchase or sale
from, to, or on behalf of a related person, of personal property
manufactured by the CFC within the meaning of Regulations
section 1.954-3(a)(4)(iv)?
In other words, are
any amounts
excluded from line 3
of Worksheet A by
reason of
Regulations section
1.954-3(a)(4)(iv)?
SC Substantial
contribution
Amount excluded
18 During the tax year, did the CFC derive income through the
conduct of any manufacturing or sales activities (including
mere passage of title) through a branch or similar
establishment (such as a disregarded entity of the CFC) that
would have been foreign base company sales income
described in section 954(d) except that either (a) the branch
or other similar establishment was not treated as a wholly
owned subsidiary separate from the CFC under section 954(d)
(2) and the regulations, or (b) the income is not foreign base
company sales income after the application of Regulations
section 1.954-3(b)(2)(ii)(e)?
In other words, are
any amounts
excluded from line 3
of Worksheet A by
reason of
disregarding a
branch or similar
establishment
(including a
disregarded entity) of
the CFC as separate
from the CFC?
BR Branch Amount excluded
19 During the tax year, was the CFC an eligible CFC (as defined
in section 954(h)(2)) that derived qualified banking or
financing income (as defined in section 954(h)(3))?
In other words, are
any amounts
excluded from lines
1a–1i of Worksheet A
by reason of the
special rule
described in section
954(h)?
AF Active
financing
Amount excluded
20 During the tax year, was the CFC a qualifying insurance
company (as defined in section 953(e)(3)) that derived
qualified insurance income (as defined in section 954(i)(2))?
In other words, are
any amounts
excluded from lines
1a–1i of Worksheet A
by reason of the
special rule
described in section
954(i)?
AI Active
insurance
Amount excluded
21 During the tax year, did the subpart F income of the CFC
exceed the earnings and profits of such corporation?
In other words, is
line 36 of Worksheet
A greater than
line 37c?
EP Earnings &
profits
limitation
Excess of line 36
over line 37c
Instructions for Form 5471 (Rev. 01-2024)
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Form 5471, Schedule G, Line 14 (continued)
Question See Worksheet A in
the Schedule I
instructions
If “Yes,”
corresponding
code to enter
on Schedule G,
line 14
Code
description
If “Yes,” content
of statement to be
attached to Form
5471
22 In determining the pro rata share of subpart F income or
tested items of the U.S. person filing this return, was the
amount of distributions by the CFC during the tax year and
described in section 951(a)(2)(B) greater than zero?
In other words, is
line 58 of Worksheet
A greater than zero?
PRS Pro Rata
Share
The amounts from
lines 58 and 59 of
Worksheet A
23 Is the U.S. person filing this return relying on any exception(s),
exclusion(s), or other provision(s) not listed above to reduce
or exclude any amounts reported or reportable as subpart F
income (of or with respect to the CFC)?
XX Other Amount excluded,
reduction amount,
or other amount not
reported or
reportable
Question 15
For the foreign corporation’s annual
accounting period with respect to
which reporting is being made on this
Form 5471, if the foreign corporation
is required to file a U.S. income tax
return (for example, Form 1120
-F),
check the “Yes” box if the foreign
corporation has interest expense
disallowed under section 163(j). If
“Yes,” enter the amount from the
current year Form 8990, line 31.
Question 16
For the foreign corporation’s annual
accounting period with respect to
which reporting is being made on this
Form 5471, if the foreign corporation
is required to file a U.S. income tax
return (for example, Form 1120
-F),
check the “Yes” box if the foreign
corporation has previously disallowed
interest expense under section 163(j)
carried forward to the current tax year.
If “Yes,” enter the amount from the
prior year Form 8990, line 31.
Question 17a
Check the “Yes” box on line 17a if
there was an extraordinary reduction
with respect to any controlling section
245A shareholder of the foreign
corporation, as defined in Regulations
section 1.245A-5(i)(2), during the tax
year of the foreign corporation. See
Regulations section 1.245A-5(e)(2)(i)
for the definition of extraordinary
reduction.
Question 17b
If the answer to the question on
line 17a was “Yes,” complete the
question on line 17b. Check the “Yes”
box on line 17b if any controlling
section 245A shareholder (as defined
in Regulations section 1.245A-5(i)(2))
made an election to close the tax year
of the foreign corporation such that no
amount is treated as an extraordinary
reduction amount or tiered
extraordinary reduction amount as to
any U.S. shareholder of the foreign
corporation. See Regulations section
1.245A-5(e)(3)(i) for further guidance
regarding the election to close the tax
year. If the “Yes” box on line 17b has
been checked and the U.S.
shareholder filing the Form 5471 is a
controlling section 245A shareholder
of the foreign corporation, the U.S.
shareholder filing this Form 5471 must
attach an Elective Section 245A
Year-Closing Statement pursuant to
Regulations section 1.245A-5(e)(3)(i)
(C) containing the information
required under Regulations section
1.245A-5(e)(3)(i)(D).
Question 18a
Check the “Yes” box if during the tax
year the filer had any loans to or from
the foreign corporation to which the
safe-haven rate rules of Regulations
section 1.482-2(a)(2)(iii)(B) are
applicable, and for which the filer used
a rate of interest within the relevant
safe-haven range of Regulations
section 1.482-2(a)(2)(iii)(B)(1) (100%
to 130% of the applicable federal rate
for the relevant term).
Question 18b
Check the “Yes” box if during the tax
year the filer had any loans to or from
the foreign corporation to which the
safe-haven rate rules of Regulations
section 1.482-2(a)(2)(iii)(B) are
applicable, and for which the filer used
a rate of interest outside the relevant
safe-haven range of Regulations
section 1.482-2(a)(2)(iii)(B)(1) (100%
to 130% of the applicable federal rate
for the relevant term).
Questions 19a and 19b
Complete lines 19a and 19b only if the
filer is a domestic corporation. In
completing these lines, do not
account for debt instruments that were
issued, or distributions or acquisitions
that occurred, before April 5, 2016.
See Regulations section 1.385-3(g)(3)
and 1.385-3(b)(3)(viii).
Question 19a
Check the “Yes” box if the filer issued
a covered debt instrument in any of
the transactions described in
Regulations section 1.385-3(b)(2) with
respect to the foreign corporation
during the tax year. Also check the
“Yes” box if the filer issued or
refinanced indebtedness owed to a
foreign corporation during the 36
months before or after the date of a
distribution or acquisition described in
Regulations section 1.385-3(b)(3)(i)
made by the filer, and either the
issuance or refinance of
indebtedness, or the distribution or
acquisition, occurred during the tax
year. Otherwise, check “No.” Apply
Regulations section 1.385-3(b)(3)(iii)
(E) to determine when a debt
instrument is treated as issued for
purposes of Regulations section
1.385-3(b)(3)(iii). Apply Regulations
section 1.385-3(f) in the case of a
controlled partnership within the
meaning of Regulations section
1.385-1(c)(1).
Debt that the filer treats as stock
pursuant to Regulations section
1.385-3 should still be included when
completing line 19a.
Question 19b
Provide the total amount of the
transactions described in Regulations
section 1.385-3(b)(2) (as measured
by the fair market value (FMV) of the
18
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distribution or, as the case may be,
the property exchanged for the debt
instrument), and of the distributions
and/or acquisitions described in
Regulations section 1.385-3(b)(3)(i)
(as measured by the FMV of the
property distributed and/or acquired).
Provide the total amount (as
measured by issue price in the case of
an instrument treated as stock upon
issuance, or adjusted issue price in
the case of an instrument deemed
exchanged for stock) of the debt
instrument issuances addressed by
line 19a. See Regulations sections
1.385-1(d)(1) and 1.385-3(d). The
adjusted issue price of a debt
instrument is the issue price increased
by the amount of original issue
discount previously includible in gross
income of any holder and decreased
by payments other than payments of
stated interest. See section 1272(a)
(4) and Regulations section
1.1275-1(b)(1).
Schedule I
Use Schedule I to report in U.S.
dollars the U.S. shareholder's pro rata
share of income from the foreign
corporation reportable under subpart
F and other income realized from a
corporate distribution.
Certain filers may be able to use
alternative information (as defined in
section 3.01 of Rev. Proc. 2019-40) to
determine certain amounts in this
schedule. See
Item F—Alternative
Information Under Rev. Proc.
2019-40, earlier, for more details.
Note. A separate Schedule I must be
filed by or for each Category 4, 5a, or
5b U.S. shareholder of the foreign
corporation with respect to which
reporting is furnished on this Form
5471.
Line 1
Subpart F income. U.S.
shareholders of CFCs with subpart F
income must report that income on
their tax returns. For more information,
see sections 245A, 951, 952, and
964(e).
Note. Certain current year deficits of
a member of the same chain of
corporations may be considered in
determining subpart F income. See
section 952(c)(1)(C).
Line 1a
Corporate U.S. shareholders should
enter the foreign-source portion of any
subpart F income inclusions
attributable to the sale or exchange by
a CFC of stock of another foreign
corporation that is eligible for the
section 245A dividends received
deduction pursuant to section 964(e)
(4). Include the amount, if any, that is
not eligible for the section 245A
dividends received deduction
pursuant to section 964(e)(4) on
line 1e. Noncorporate U.S.
shareholders should leave line 1a
blank.
Line 1b
Enter the amount of the U.S.
shareholder’s subpart F income
inclusion attributable to tiered hybrid
dividends received by the CFC. In
general, a dividend received by a CFC
from another CFC is a tiered hybrid
dividend to the extent of the sum of
the receiving CFC's hybrid deduction
accounts with respect to shares of
stock of the CFC that pays the
dividend. As to a domestic
corporation that is a U.S. shareholder
with respect to both CFCs, the tiered
hybrid dividend is treated as subpart F
income of the receiving CFC, and the
U.S. shareholder must include in its
gross income its pro rata share of the
tiered hybrid dividend. See section
245A(e)(2) and Regulations section
1.245A(e)-1(c) for additional
information about tiered hybrid
dividends.
Line 1c
Enter the U.S. shareholder's subpart F
income inclusion attributable to tiered
extraordinary disposition amounts
resulting from distributions from an
extraordinary disposition account of
the shareholder filing this Form 5471
and received by the foreign
corporation. See Regulations section
1.245A-5(d) for further guidance on
tiered extraordinary disposition
amounts.
Line 1d
Enter the U.S. shareholder's subpart F
income inclusion attributable to tiered
extraordinary reduction amounts
resulting from extraordinary
reductions. See Regulations section
1.245A-5(f) for further guidance on
tiered extraordinary reduction
amounts.
Lines 1e Through 1h
Enter on lines 1e through 1h the
amounts from Worksheet A, lines 63,
65, 67, and 69, respectively. However,
corporate U.S. shareholders should
report on line 1e the amount from
Worksheet A, line 63, less the
amount, if any, reported on line 1a.
Use Worksheet A to compute the
U.S. shareholder's pro rata share of
subpart F income of the CFC, which is
reportable on lines 1e through 1h. Do
not include any income includible on
Form 5471, Schedule I, lines 1a
through 1d, or any income includible
under section 951A (Schedule I-1 is
used to provide information relating to
section 951A). Subpart F income
reportable on lines 1e through 1h
includes the following.
•
Adjusted net foreign base company
income (Worksheet A, lines 1 through
17).
•
Adjusted net insurance income
(Worksheet A, line 18).
•
Adjusted net related person
insurance income (Worksheet A,
line 19).
•
International boycott income
(Worksheet A, line 20).
•
Illegal bribes, kickbacks, and other
payments (Worksheet A, line 21).
•
Income described in section 952(a)
(5) (Worksheet A, line 22).
Important. If the subpart F income of
a CFC for any tax year was reduced
because of the current E&P limitation,
any excess of the E&P of the CFC for
any subsequent tax year over the
subpart F income of the CFC for the
tax year must be recharacterized as
subpart F income. As a result, if the
foreign corporation has E&P for the
tax period covered by this return that
is subject to recapture as a result of a
prior-year E&P limitation, add the U.S.
shareholder's pro rata share of such
recapture amount to the result from
Worksheet A, line 69, and include the
combined amount on line 1h (Other
subpart F income). See
Line 37.
Current E&P limitation, later, for a
discussion of the current year E&P
limitation. See also Regulations
section 1.952-1(f) for further guidance
on recharacterization of E&P as
subpart F income.
Line 2
Report on line 2 the section 956
amount with respect to the U.S.
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shareholder. See Worksheet B,
line 19.
Line 3
Reserved for future use.
Line 4
Enter the U.S. shareholder's pro rata
share of the factoring income (as
defined in section 864(d)(1)) if no
subpart F income is reported on
line 1a of Worksheet A, because of
the operation of the de minimis rule
(see lines 1a and 10 of Worksheet A
and the related instructions under
Line 1a and Line 10. De minimis rule,
later).
Reporting Amounts on Lines 1
Through 4 on Your Income Tax
Return
For a corporate shareholder, enter the
result from line 1a on Form 1120,
Schedule C, line 16a; enter the result
from line 1b on Form 1120,
Schedule C, line 16b; and enter the
remaining lines 1c through 1h, 2, and
4 on Form 1120, Schedule C, line 16c;
or on the comparable line of other
corporate tax returns. For a
noncorporate U.S. shareholder, enter
the results on Schedule 1 (Form
1040), line 8n (other income - section
951(a) inclusion), or on the
comparable line of other noncorporate
tax returns.
Line 5a
Enter the amount of dividends
received by the shareholder from the
foreign corporation that is eligible for a
deduction under section 245A. This
amount does not include the amount
of dividends that are not eligible for a
deduction under section 245A and are
instead entered on lines 5b, 5c, and
5d. See section 245A for guidance on
computing the amount of a dividend
eligible for a deduction.
Note. The corporate U.S.
shareholder should include the line 5a
amount on Form 1120, Schedule C,
line 13, column (a), or the comparable
line of other corporate income tax
returns. In doing so, the corporate
U.S. shareholder must determine
whether it meets the statutory and
regulatory requirements for the
section 245A dividends received
deduction.
Line 5b
Enter the amount of the dividends
received by the shareholder from the
foreign corporation that is an
extraordinary disposition amount. See
Regulations section 1.245A-5(c) for
rules for calculating an extraordinary
disposition amount.
Note. The corporate U.S.
shareholder should include the line 5b
amount on Form 1120, Schedule C,
line 14, column (a), or the comparable
line of other corporate income tax
returns.
Line 5c
Enter the amount of the dividends
received by the shareholder from the
foreign corporation that is an
extraordinary reduction amount. See
Regulations section 1.245A-5(e) for
rules for calculating an extraordinary
reduction amount.
Note. The corporate U.S.
shareholder should include the line 5c
amount on Form 1120, Schedule C,
line 14, column (a), or the comparable
line of other corporate income tax
returns.
Line 5d
Enter the amount of hybrid dividends
received by the U.S. shareholder from
the foreign corporation. In general, in
the case of a domestic corporation
that is a U.S. shareholder with respect
to a CFC, a dividend received by the
domestic corporation from the CFC is
a hybrid dividend to the extent of the
sum of the U.S. shareholder’s hybrid
deduction accounts with respect to
shares of stock of the CFC. See
section 245A(e) and Regulations
section 1.245A(e)-1(b) for additional
information about hybrid dividends.
Note. The corporate U.S.
shareholder should include the line 5d
amount on Form 1120, Schedule C,
line 14, column (a), or the comparable
line of other corporate income tax
returns.
Line 5e
Enter on line 5e dividends not
reported on line 5a, 5b, 5c, or 5d.
Note. The corporate U.S.
shareholder should include the line 5e
amount on Form 1120, Schedule C,
line 14, column (a), or the comparable
line of other corporate income tax
returns.
Line 6
If previously taxed E&P (PTEP) were
distributed, enter the amount of
foreign currency gain or (loss)
recognized on the distribution,
computed under section 986(c). See
Notice 88-71, 1988-2 C.B. 374, for
rules for computing section 986(c)
gain or (loss), and Regulations section
1.986(c)-1(a) and (b) for rules for
computing section 986(c) gain or
(loss) recognized with respect to
distributions of PTEP within the
reclassified section 965(a) PTEP
group and the section 965(a) PTEP
group. Do not include any foreign
currency gain or loss with respect to
PTEP within the reclassified section
965(b) PTEP group or the section
965(b) PTEP group. See Regulations
section 1.986(c)-1(c).
For a corporate U.S. shareholder,
include the gain or (loss) as “Other
income” on Form 1120, line 10, or on
the comparable line of other corporate
tax returns. For a noncorporate U.S.
shareholder, include the result as
“other income” on Schedule 1 (Form
1040), line 8z (other income), or on
the comparable line of other
noncorporate tax returns.
Line 8a
Check the “Yes” box on line 8a if the
U.S. shareholder completing this form
had an extraordinary disposition
account with respect to the foreign
corporation having a balance greater
than zero at any time during the tax
year of the foreign corporation. See
Regulations section 1.245A-5(c) for
rules regarding an extraordinary
disposition account.
Line 8b
If “Yes” is checked on line 8a, enter on
line 8b the U.S. shareholder’s
extraordinary disposition account
balance at the beginning and end of
the foreign corporation’s tax year.
Attach a statement detailing any
differences between the starting and
ending balance of the extraordinary
disposition account reported on
line 8b.
Line 8c
Enter on line 8c the CFC’s total
extraordinary disposition account
balance with respect to all U.S
shareholders of the CFC at the
20
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beginning of the CFC year and at the
end of the CFC tax year. Attach a
statement detailing any differences
between the starting and ending
balances reported on line 8c.
Line 9
If the foreign corporation is a CFC and
the filer is a domestic corporation,
enter on line 9 the sum of the hybrid
deduction accounts with respect to
each share of stock of the CFC that
the domestic corporation owns
directly or indirectly (within the
meaning of section 958(a)(2), and
determined by treating a domestic
partnership as foreign). The reported
amount should reflect the balance of
the hybrid deduction accounts as of
the close of the tax year of the CFC,
and after all adjustments to the hybrid
deduction accounts for the tax year
(for example, to reflect hybrid
deductions of the CFC, or hybrid
dividends paid by the CFC). For
example, if the CFC is an upper-tier
CFC all the stock of which is owned
by the filer, then line 9 must reflect the
sum of the filer’s hybrid deduction
accounts with respect to shares of
stock of the upper-tier CFC; if instead
the CFC is a lower-tier CFC all the
stock of which is owned by the filer
through an upper-tier CFC, then line 9
must reflect the sum of the upper-tier
CFC’s hybrid deduction accounts with
respect to shares of stock of the
lower-tier CFC.
A hybrid deduction account with
respect to a share of stock of a CFC
reflects the amount of hybrid
deductions of the CFC that has been
allocated to the share. In general, a
hybrid deduction is a deduction or
other tax benefit allowed to the CFC
(or a related person) under a foreign
tax law for an amount paid, accrued,
or distributed with respect to an
instrument of the CFC that is stock for
U.S. tax purposes. A hybrid deduction
includes a deduction allowed to the
CFC under a foreign tax law with
respect to equity (such as a notional
interest deduction). See Regulations
section 1.245A(e)-1(d) for additional
information about hybrid deduction
accounts.
A domestic corporation that is a
U.S. shareholder with respect to a
CFC must maintain a hybrid deduction
account with respect to each share of
stock of the CFC that the domestic
corporation owns directly or indirectly
through a partnership, trust, or estate.
In addition, certain upper-tier CFCs
must maintain a hybrid deduction
account with respect to each share of
the stock of a lower-tier CFC that the
upper-tier CFC owns directly or
indirectly through a partnership, trust,
or estate. See Regulations section
1.245A(e)-1(d) for more on
maintenance of hybrid deduction
accounts.
Instructions for Form 5471 (Rev. 01-2024)
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Worksheet A
Adjusted net full inclusion foreign base company income:16
16a
a Enter the excess, if any, of line 11 over line 7
16b
b Expenses allocated and apportioned under section 954(b)(5)
16c
c
Net full inclusion foreign base company income. Subtract line 16b from line 16a
d
Net full inclusion foreign base company income excluded under high-tax exception
16d
e Subtract line 16d from line 16c
1 Gross foreign personal holding company income:
a Dividends, interest, royalties, rents, and annuities (section 954(c)(1)(A)
(excluding amounts described in sections 954(c)(2), (3), and (6))
1a
Excess of gains over losses from certain property transactions
(section 954(c)(1)(B))
b
1b
Excess of gains over losses from commodity transactions (section 954(c)(1)(C))
c
1c
Excess of foreign currency gains over foreign currency losses (section 954(c)(1)(D))
d
1d
1e
Income equivalent to interest (section 954(c)(1)(E))
e
2
Gross foreign personal holding company income. Add lines 1a through 1i2
3
Gross foreign base company sales income (see section 954(d))
3
4
Gross foreign base company services income (see section 954(e))
4
5
5
6
6
Gross foreign base company income. Add lines 2 through 4
7
7
Gross insurance income (see sections 953 and 954(b)(3)(C) and the instructions for lines 18 and
19)
8
8
Gross foreign base company income and gross insurance income. Add lines 5 and 6
9
Enter 5% of total gross income (as computed for income tax purposes)
9
10
10
Enter 70% of total gross income (as computed for income tax purposes)
11
If line 7 is less than line 8 and less than $1 million, enter -0- on this line and skip lines 11 through 19
11
If line 7 is more than line 9, enter total gross income (as computed for income tax purposes)
12
12
Total adjusted gross foreign base company income and insurance income (enter the greater of
line 7 or line 11)
13 Adjusted net foreign personal holding company income:
13a
a Enter amount from line 2
13d
b
Related person interest expense (see section 954(b)(5))
c
Other expenses allocated and apportioned to the amount on line 2
under section 954(b)(5)
13e
d
Net foreign personal holding company income. Subtract the sum of
lines 13d and 13e from line 13c
13f
13g
Net foreign personal holding company income excluded under
high-tax exception
e
13h
Subtract line 13g from line 13f
f
Adjusted net foreign base company sales income:14
14a
a Enter amount from line 3
b Expenses allocated and apportioned to the amount on line 3 under
section 954(b)(5)
14b
14c
c
Net foreign base company sales income. Subtract line 14b from line 14a
d
Net foreign base company sales income excluded under high-tax exception
14d
14e
e Subtract line 14d from line 14c
Adjusted net foreign base company services income:15
15a
a Enter amount from line 4
15b
b Expenses allocated and apportioned to line 4 under section 954(b)(5)
15c
c
Net foreign base company services income. Subtract line 15b from line 15a
d
Net foreign base company services income excluded under high-tax exception
15d
15e
e Subtract line 15d from line 15c
Expenses directly related to amount on line 2
Subtract line 13b from line 13a
13b
13c
g
h
1f
Net income from a notional principal contract (section 954(c)(1)(F))
f
1g
Payments in lieu of dividends (section 954(c)(1)(G))
g
h Certain amounts received for services under personal service
contracts (see section 954(c)(1)(H))
i Certain amounts from sales of partnership interests to which the
look-through rule of section 954(c)(4) applies
1h
1i
16e
Summary of U.S. Shareholder’s Pro Rata Share of Subpart F Income of a CFC (See the Worksheet A
instructions, later.) Enter the amounts on lines 1a through 62, 64, 66, and 68 in functional currency.
22
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Worksheet A
Worksheet A (continued) (See instructions.)
17 Adjusted net foreign base company income. Add lines 13h, 14e, 15e, and 16e . . . . . . . 17
18 Adjusted net insurance income (other than related person insurance income):
a Enter amount from line 6 (other than related person insurance income) . . 18a
b Expenses allocated and apportioned to the amount on line 18a under section
953 . . . . . . . . . . . . . . . . . . . . . . . . .
18b
c Net insurance income. Subtract line 18b from line 18a . . . . . . . . 18c
d Net insurance income excluded under high-tax exception . . . . . . . 18d
e Subtract line 18d from line 18c . . . . . . . . . . . . . . . . . . . . . . . . 18e
19 Adjusted net related person insurance income:
a Enter amount from line 6 that is related person insurance income . . . . 19a
b Expenses allocated and apportioned to the amount on line 19a under section
953 . . . . . . . . . . . . . . . . . . . . . . . . .
19b
c Net related person insurance income. Subtract line 19b from line 19a . . . 19c
d Net related person insurance income excluded under high-tax exception . . 19d
e Subtract line 19d from line 19c . . . . . . . . . . . . . . . . . . . . . . . . 19e
20 International boycott income (section 952(a)(3)) . . . . . . . . . . . . . . . . . . 20
21 Illegal bribes, kickbacks, and other payments (section 952(a)(4)) . . . . . . . . . . . . . 21
22 Income described in section 952(a)(5) (see instructions) . . . . . . . . . . . . . . . 22
23 Subpart F income before application of section 952(b) and (c), section 959(b), and section 961(c). Add
lines 17, 18e, 19e, and 20 through 22 . . . . . . . . . . . . . . . . . . . . . .
23
24 Enter the portion of line 13h that is U.S. source income effectively connected
with a U.S. trade or business (section 952(b)) . . . . . . . . . . .
24
25 Exclusions under section 959(b) and section 961(c) basis that apply to line 13h
amount . . . . . . . . . . . . . . . . . . . . . . .
25
26 Section 954(c) subpart F Foreign Personal Holding Company Income. Subtract the sum of lines
24 and 25 from line 13h . . . . . . . . . . . . . . . . . . . . . . . . . .
26
27 Enter the portion of line 14e that is U.S. source income effectively connected
with a U.S. trade or business (section 952(b)) . . . . . . . . . . .
27
28 Exclusions under section 959(b) that apply to line 14e amount . . . . . 28
29 Section 954(d) subpart F Foreign Base Company Sales Income. Subtract the sum of lines 27 and
28 from line 14e . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
30 Enter the portion of line 15e that is U.S. source income effectively connected
with a U.S. trade or business (section 952(b)) . . . . . . . . . . .
30
31 Exclusions under section 959(b) that apply to line 15e amount . . . . . 31
-0-
32 Section 954(e) subpart F Foreign Base Company Services Income. Subtract the sum of lines 30
and 31 from line 15e . . . . . . . . . . . . . . . . . . . . . . . . . . .
32
33
Enter the sum of the portion of lines 16e, 18e, 19e, 20, 21, and 22 that is U.S.
source income effectively connected with a U.S. trade or business (section
952(b)) . . . . . . . . . . . . . . . . . . . . . . . .
33
34 Exclusions under section 959(b) that apply to line 16e, 18e, 19e, 20, 21, and
22 amounts . . . . . . . . . . . . . . . . . . . . . .
34
35 Other subpart F income. Subtract the sum of lines 33 and 34 from the sum of lines 16e, 18e, 19e,
20, 21, and 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35
36 Total subpart F income. Add lines 26, 29, 32, and 35 . . . . . . . . . . . . . . . . 36
37 Current E&P limitation computation:
a Current E&P . . . . . . . . . . . . . . . . . . . . . . 37a
b Tested loss (enter as a positive number—see instructions) . . . . . . . 37b
c Total of line 37a and line 37b . . . . . . . . . . . . . . . . 37c
38 Enter the smaller of line 36 or line 37c . . . . . . . . . . . . . . . . . . . . . 38
-0-
Instructions for Form 5471 (Rev. 01-2024)
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Worksheet A
Worksheet A (continued) (See instructions.)
39
If the amount on line 37c is less than the amount on line 36, allocate the subpart F income remaining (after having been limited)
to lines 40, 41, 42, and 43 below in the manner prescribed by Regulations section 1.952-1(e). If the amount on line 37c is
greater than or equal to the amount on line 36, enter the amount from line 26 onto line 40, enter the amount from line 29 onto
line 41, enter the amount from line 32 onto line 42, and enter the amount from line 35 onto line 43.
40 Section 954(c) subpart F Foreign Personal Holding Company Income subtotal . . . . . . . .
40
41 Section 954(d) subpart F Foreign Base Company Sales Income subtotal . . . . . . . . . . 41
42 Section 954(e) subpart F Foreign Base Company Services Income subtotal . . . . . . . . . 42
43 Other subpart F income subtotal . . . . . . . . . . . . . . . . . . . . . . . 43
44 Shareholder’s pro rata share of line 40 . . . . . . . . . . . . . 44
45 Shareholder’s pro rata share of export trade income that applies to line 44
amount (see section 970(a)) . . . . . . . . . . . . . . . . .
45
46 Section 954(c) subpart F Foreign Personal Holding Company Income subtotal. Subtract line 45 from
line 44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46
47 Shareholder’s pro rata share of line 41 . . . . . . . . . . . . . 47
48 Shareholder’s pro rata share of export trade income that applies to line 47
amount (see section 970(a)) . . . . . . . . . . . . . . . . .
48
49 Section 954(d) subpart F Foreign Base Company Sales Income subtotal. Subtract line 48 from line 47 49
50 Shareholder’s pro rata share of line 42 . . . . . . . . . . . . . 50
51 Shareholder’s pro rata share of export trade income that applies to line 50
amount (see section 970(a)) . . . . . . . . . . . . . . . . .
51
52 Section 954(e) subpart F Foreign Base Company Services Income subtotal. Subtract line 51 from line
50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
52
53 Shareholder’s pro rata share of line 43 . . . . . . . . . . . . . 53
54 Shareholder’s pro rata share of export trade income that applies to line 53
amount (see section 970(a)) . . . . . . . . . . . . . . . . .
54
55 Other subpart F income subtotal. Subtract line 54 from line 53 . . . . . . . . . . . . . 55
56 Add lines 46, 49, 52, and 55 . . . . . . . . . . . . . . . . . . . . . . . . . 56
57 Divide the number of days in the tax year that the corporation was a CFC by
the number of days in the tax year and multiply the result by line 56 . . . .
57
58 The amount of dividends received by any other person with respect to your
stock multiplied by a fraction, the numerator of which is the CFC's subpart F
income for the tax year and the denominator of which is the sum of the CFC's
subpart F income and tested income (section 951A(c)(2)(A) and Regulations
section 1.951A-2(b)(1)) for the tax year . . . . . . . . . . . . .
58
59 Divide the number of days in the tax year you did not own such stock by the
number of days in the tax year and multiply the result by line 56 . . . . .
59
60 Enter the smaller of line 58 or line 59 . . . . . . . . . . . . . . 60
61 Shareholder’s pro rata share of subpart F income. Subtract line 60 from line 57 . . . . . . 61
62 Amount of line 61 that applies to section 954(c) subpart F Foreign Personal Holding Company Income 62
63 Translate the amount on line 62 from functional currency to U.S. dollars at the average exchange rate.
See section 989(b). Enter the result here and on Form 5471, Schedule I, line 1e . . . . . . . .
63
64 Amount of line 61 that applies to section 954(d) subpart F Foreign Base Company Sales Income . . 64
65 Translate the amount on line 64 from functional currency to U.S. dollars at the average exchange rate.
See section 989(b). Enter the result here and on Form 5471, Schedule I, line 1f . . . . . . . .
65
66 Amount of line 61 that applies to section 954(e) subpart F Foreign Base Company Services Income . 66
67 Translate the amount on line 66 from functional currency to U.S. dollars at the average exchange rate.
See section 989(b). Enter the result here and on Form 5471, Schedule I, line 1g . . . . . . . .
67
68 Amount of line 61 that applies to other subpart F income . . . . . . . . . . . . . . . 68
69 Translate the amount on line 68 from functional currency to U.S. dollars at the average exchange rate.
See section 989(b). Enter the result here and on Form 5471, Schedule I, line 1h . . . . . . . .
69
24
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Worksheet A Instructions
Foreign base company income.
Foreign base company income
generally does not include the
following.
•
Foreign base company shipping
income as defined in former section
954(f).
•
Foreign personal holding company
income derived in the active conduct
of a banking, finance, or similar
business (section 954(h)).
•
Exempt insurance income under
section 953(e) and certain investment
income of a qualifying insurance
company or a qualifying insurance
branch (sections 953(a)(2) and
954(i)).
•
Certain income derived in the
ordinary course of business of a
securities dealer (section 954(c)(2)(C)
(i)).
Line 1a. Do not include:
•
Interest from conducting a banking
business that is “export financing
interest” (section 904(d)(2)(G));
•
Rents and royalties from actively
conducting a trade or business
received from a person other than a
“related person” (as defined in section
954(d)(3)); and
•
Dividends, interest, rent, or royalty
income from related corporate payors
described in section 954(c)(3) or (6).
However, see section 964(e) for an
exception to section 954(c)(3), and
see section 964(e)(4) and Regulations
section 1.245A-5 for an exception to,
and limitation on, section 954(c)(6),
respectively.
Interest income includes factoring
income arising when a person
acquires a trade or service receivable
(directly or indirectly) from a related
person. The income is treated as
interest on a loan to the obligor under
section 864(d)(1) and is generally not
eligible for the de minimis, export
financing, and related party
exceptions to the inclusion of subpart
F income. Also, a trade or service
receivable acquired or treated as
acquired by a CFC from a related U.S.
person is considered an investment in
U.S. property for purposes of section
956 (Worksheet B) if the obligor is a
U.S. person.
Note. Section 111 of the Taxpayer
Certainty and Disaster Tax Relief Act
of 2020 extended the look-through
rule of section 954(c)(6). The rule now
applies to tax years of foreign
corporations beginning after
December 31, 2005, and before
January 1, 2026, and to tax years of
U.S. shareholders with or within which
such tax years of the foreign
corporations end. Continue to exclude
the applicable types of income
specified in section 954(c)(6) from
Worksheet A, line 1a, for the period
specified in the previous sentence.
Line 1b. Enter the excess of gains
over losses from the sale or exchange
of:
•
Property that produces the type of
income reportable on line 1a;
•
An interest in a trust, partnership, or
REMIC; however, see Line 1i, later, for
an exception that provides for
look-through treatment for certain
sales of partnership interests; or
•
Property that does not produce any
income.
Do not include the following.
•
Income, gain, deduction, or loss
from any transaction (including a
hedging transaction) and transactions
involving physical settlement of a
regular dealer in property, forward
contracts, option contracts, and
similar financial instruments (section
954(c)(2)(C)).
•
Gains and losses from the sale or
exchange of any property that, in the
hands of the CFC, is property
described in section 1221(a)(1).
Line 1c. Enter the excess of gains
over losses from transactions
(including futures, forward, and similar
transactions) in any commodities. See
section 954(c)(1)(C) for exceptions.
See section 954(c)(5) for a definition
and special rules relating to
commodity transactions.
Line 1d. Enter the excess of foreign
currency gains over foreign currency
losses from section 988 transactions.
An exception applies to transactions
directly related to the business needs
of a CFC.
Line 1e. Enter any income equivalent
to interest, including income from
commitment fees (or similar amounts)
for loans actually made.
Line 1f. Include net income from
notional principal contracts (except a
contract entered into to hedge
inventory property).
Line 1g.
Include payments in lieu of
dividends that are made as required
under section 1058.
Line 1h. Enter amounts received:
•
Under a contract under which the
corporation is to furnish personal
services if (a) some person other than
the corporation has a right to
designate (by name or by description)
the individual who is to perform the
services, or (b) the individual who is to
perform the services is designated (by
name or by description) in the
contract; and
•
From the sale or other disposition of
such a contract.
Note. The above rules apply with
respect to amounts received for
services under a particular contract
only if at some time during the tax
year 25% or more in value of the
outstanding stock of the corporation is
owned, directly or indirectly, by or for
the individual who has performed, is
to perform, or may be designated (by
name or by description) as the one to
perform, such services.
Line 1i. For tax years beginning after
December 31, 2004, in the case of
any sale by a CFC of an interest in a
partnership with respect to which the
CFC is a 25% owner (defined below),
such CFC is treated for purposes of
computing its foreign personal holding
company income as selling the
proportionate share of the assets of
the partnership attributable to such
interest. Thus, the sale of a
partnership interest by a CFC that
meets the ownership threshold
constitutes subpart F income only to
the extent that a proportionate sale of
the underlying partnership assets
attributable to the partnership interest
would constitute subpart F income.
Do not report these amounts on
line 1b. Instead, report them on line 1i.
25% owner. For purposes of
these rules, a 25% shareholder is a
CFC that owns directly 25% or more
of the capital or profits interest in a
partnership. For purposes of the
preceding sentence, if a CFC is a
shareholder or partner of a
corporation or partnership, the CFC is
treated as owning directly its
proportionate share of any such
capital or profits interest held directly
or indirectly by such corporation or
partnership. If a CFC is treated as
owning a capital or profits interest in a
Instructions for Form 5471 (Rev. 01-2024)
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partnership under constructive
ownership rules similar to the rules of
section 958(b), the CFC shall be
treated as owning such interest
directly or indirectly for purposes of
this definition.
Line 10. De minimis rule. If the sum
of foreign base company income
(determined without regard to section
954(b)(5)) and gross insurance
income (as defined in section 954(b)
(3)(C)) for the tax year is
less than
the lesser of 5% of gross income for
income tax purposes, or $1 million,
then no portion of the gross income
for the tax year is treated as foreign
base company income or insurance
income. In this case, enter zero on
line 10 and skip lines 11 through 19.
Otherwise, go to line 11.
Line 11. Full inclusion rule. If the
sum of foreign base company income
(determined without regard to section
954(b)(5)) and gross insurance
income for the tax year exceeds 70%
of gross income for income tax
purposes, the entire gross income for
the tax year must (subject to the
high-tax exception described below,
the section 952(b) exclusion, and the
deductions to be taken into account
under section 954(b)(5)) be treated as
foreign base company income or
insurance income, whichever is
appropriate. In this case, enter total
gross income (for income tax
purposes) on line 11. Otherwise, enter
zero.
Lines 13b, 13d, 13e, 14b, 15b, and
16b. Expenses. Adjusted net foreign
base company income is calculated
by first determining the gross amount
of each item of income and then
allocating and apportioning expenses
to such items of income. For more
information, see section 954(b)(5) and
Regulations section 1.954-1(c)(1)(i).
Expenses allocated and apportioned
to an item of income may reduce the
item of income below zero, and any
item of income that is less than zero
generally cannot offset other items of
income. For more information, see
Regulations section 1.954-1(c)(1)(ii).
Do not enter expenses on these lines
of Worksheet A to the extent that their
allocation and apportionment reduces
an item of income below zero.
Note. In determining the amount of
a net item of foreign base company
income, deductions or loss
attributable to disqualified basis and
deductions attributable to disqualified
payments (Regulations section
1.951A-2(c)(5) or (6)) are not
allocated and apportioned to gross
foreign base company income.
Lines 13g, 14d, 15d, 16d, 18d, and
19d. Exception for certain income
subject to high foreign taxes.
Foreign base company income and
insurance income do not include any
item of income received by a CFC if
the taxpayer establishes that such
income was subject to an effective
rate of income tax imposed by a
foreign country that is greater than
90% of the maximum rate of tax
specified in section 11. For more
information, see section 954(b)(4) and
Regulations section 1.954-1(d)(1).
Line 18. Adjusted net insurance in-
come. Insurance income is any
income attributable to the issuing (or
reinsuring) of any insurance or annuity
contract that would (subject to the
modifications provided in section
953(b)) be taxed under subchapter L
(insurance company tax) if such
income were income of a domestic
insurance company. However,
insurance income does not include
exempt insurance income (as defined
in section 953(e)).
Line 18b. Expenses. Do not enter
expenses on this line to the extent that
their allocation and apportionment
reduces an item of insurance income
below zero.
Note. In determining the amount of
a net item of insurance income,
deductions or loss attributable to
disqualified basis and deductions
attributable to disqualified payments
(Regulations section 1.951A-2(c)(5)
or (6)) are not allocated and
apportioned to gross insurance
income.
Line 19. Adjusted net related per-
son insurance income. Related
person insurance income is any
insurance income (within the meaning
of section 953(a)) attributable to a
policy of insurance or reinsurance for
which the person insured (directly or
indirectly) is a U.S. shareholder (as
defined in section 953(c)(1)(A)) in a
CFC (as defined in section 953(c)(1)
(B)), or a related person (as defined in
section 953(c)(6)) to such a
shareholder. If a CFC has related
person insurance income, the U.S.
shareholder’s pro rata share is to be
determined under the rules of section
953(c)(5).
Exceptions. The above definition
does not apply to any foreign
corporation if:
•
At all times during the foreign
corporation's tax year, less than 20%
of the total combined voting power of
all classes of stock of the corporation
entitled to vote, and less than 20% of
the total value of the corporation, is
owned (directly or indirectly under the
principles of section 883(c)(4)) by
persons who are (directly or indirectly)
insured under any policy of insurance
or reinsurance issued by the
corporation or who are related
persons to any such person;
•
The related person insurance
income (determined on a gross basis)
of the corporation for the tax year is
less than 20% of its insurance income
for the tax year; or
•
The corporation:
1. Elects to treat its related person
insurance income for the tax year as
income effectively connected with the
conduct of a trade or business in the
United States,
2. Elects to waive all treaty
benefits (other than from section 884)
for related person insurance income,
and
3. Meets any requirement the IRS
may prescribe to ensure that any tax
on such income is paid.
This election will not be effective if
the corporation was a disqualified
corporation (as defined in section
953(c)(3)(E)) for the tax year for which
the election was made or for any prior
tax year beginning after 1986. See
section 953(c)(3)(D) for special rules
for this election.
Mutual life insurance companies.
The related person insurance income
rules also apply to mutual life
insurance companies under
regulations prescribed by the
Secretary. For these purposes,
policyholders must be treated as
shareholders.
Line 19b. Expenses. Do not enter
expenses on this line to the extent that
their allocation and apportionment
reduces an item of insurance income
below zero.
Note. In determining the amount of
a net item of insurance income,
deductions or loss attributable to
disqualified basis and deductions
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attributable to disqualified payments
(Regulations section 1.951A-2(c)(5)
or (6)) are not allocated and
apportioned to gross insurance
income.
Line 20. International boycott in-
come. If a CFC or a member of a
controlled group (within the meaning
of section 993(a)(3)) that includes the
CFC has operations in, or related to, a
country (or with the government, a
company, or a national of a country)
that requires participation in or
cooperation with an international
boycott as a condition of doing
business within such country or with
the government, company, or national
of that country, a portion of the CFC's
income is included in subpart F
income. The amount included is
determined by multiplying the CFC's
income (other than income included
under section 951 and U.S. source
effectively connected business
income described in section 952(b))
by the international boycott factor.
This factor is a fraction determined on
Schedule A (Form 5713).
Special rule. If the shareholder of
a CFC can clearly demonstrate that
the income earned for the tax year is
from specific operations, then, instead
of applying the international boycott
factor, the addition to subpart F
income is the amount specifically from
the operations in which there was
participation in or cooperation with an
international boycott. See Schedule B
(Form 5713).
Line 21. Illegal bribes, kickbacks,
and other payments. Enter the total
of any illegal bribes, kickbacks, or
other payments (within the meaning of
section 162(c)) paid by or on behalf of
the corporation, directly or indirectly,
to an official, employee, or agent of a
government.
Line 22. Income described in sec-
tion 952(a)(5). The income of a CFC
derived from any foreign country
during any period during which
section 901(j) applies to such foreign
country will be deemed to be income
to the U.S. shareholders of such CFC.
As of the date these instructions were
revised, section 901(j) applied to Iran,
North Korea, Sudan, and Syria.
Lines 24, 27, 30, and 33. Exclusion
of U.S. income. Subpart F income
does not include any U.S. source
income (which, for these purposes,
includes all carrying charges and all
interest, dividends, royalties, and
other investment income received or
accrued by an FSC) that is effectively
connected with a CFC's conduct of a
trade or business in the United States
unless that item is exempt from
taxation (or is subject to a reduced
rate of tax) pursuant to a treaty
obligation of the United States or the
Code.
Line 37. Current E&P limitation. A
CFC's subpart F income is limited to
the sum of the following.
•
Its current year E&P, computed
under the special rule of section
952(c)(1). Enter this amount on
line 37a.
•
Any tested loss under section
951A(c)(2)(B)(ii). If the total of all lines
6 of all separate Schedules I-1 (Form
5471) for the CFC is a negative
number, enter the amount as a
positive number on line 37b. If the
total of all lines 6 is a positive number
or zero, enter -0- on line 37b.
The amount included in the gross
income of a U.S. shareholder of a
CFC under section 951(a)(1)(A) for
any tax year and attributable to a
qualified activity must be reduced by
the shareholder's pro rata share of
any qualified deficit (see section
952(c)(1)(B)).
Lines 39 through 43. If Worksheet
A, line 37c, is less than the amount on
Worksheet A, line 36, allocate the
subpart F income remaining (after
having been limited) (that is, the
line 38 amount) to the four categories
of subpart F income listed on
Worksheet A, lines 40 through 43,
using the rules of Regulations section
1.952-1(e).
Instructions for Form 5471 (Rev. 01-2024)
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Worksheet B Instructions
Use Worksheet B to determine a U.S.
shareholder's pro rata share of
earnings of a CFC invested in U.S.
property that is subject to tax. Only
earnings of a CFC not distributed or
otherwise previously taxed are subject
to these rules. Thus, the amount of
previously
untaxed earnings limits the
section 956 inclusion. A CFC's
investment in U.S. property in excess
of this limit will not be included in the
taxable income of the CFC's U.S.
shareholders. PTEP related to
prior-year section 956 inclusions (see
section 959(c)(1)(A)) and current-year
or prior-year subpart F inclusions (see
section 959(c)(2)) reduce what would
otherwise be the current year section
956 inclusion.
Note. PTEP resulting from subpart F
inclusions (that is, section 959(c)(2)
PTEP) that reduced prior-year section
956 or 956A inclusions (see section
959(a) and (c)(1), and Schedule J)
should be reclassified as section
959(c)(1) PTEP.
Distributions are also taken into
account before the section 956
inclusion is determined. Distributions
are generally treated as coming first
from (and thus reducing the balances
of) the PTEP accounts. Thus, the U.S.
shareholders must:
1. Compute the current year
subpart F income inclusion
(potentially increasing the section
959(c)(2) PTEP within the PTEP
accounts),
2. Take into account current
distributions (potentially reducing the
PTEP accounts and untaxed earnings
and profits), and
3. Compute the current section
956 inclusion (increasing section
959(c)(1) PTEP and potentially
decreasing section 959(c)(2) PTEP in
the PTEP accounts).
U.S. property is measured on a
quarterly average basis. For purposes
of Worksheet B, the amount taken into
account with respect to U.S. property
is generally its adjusted basis for E&P
purposes, reduced by any liability to
which the property is subject. See
section 956(c) and (d) and the
regulations under section 956 to
determine whether the CFC is treated
as holding U.S. property. The amount
of U.S. property held (directly or
indirectly) by the CFC that was
acquired by the foreign corporation
before it became a CFC is
disregarded (that is, not included), but
not in excess of the amount of
applicable earnings (as defined in
section 956(b)) accumulated during
periods before it became a CFC.
If the foreign corporation ceases to
be a CFC during the tax year:
•
The determination of the U.S.
shareholder's pro rata share will be
made based upon the stock owned
(within the meaning of section 958(a))
by the U.S. shareholder on the last
day during the tax year in which the
foreign corporation was a CFC;
•
The CFC's U.S. property for the tax
year will be determined only by taking
into account quarters ending on or
before such last day (and investments
in U.S. property as of the close of
Worksheet B
.
U.S. Shareholder’s Pro Rata Share of Earnings of a CFC Invested in U.S. Property
Enter the amounts on lines 1 through 18 in functional currency.
1 Amount of U.S. property (as dened in section 956(c) and (d)) held (directly or
indirectly) by the CFC as of the close of:
a The rst quarter of the tax year . . . . . . . . . . . . . . . .
1a
b The second quarter of the tax year . . . . . . . . . . . . . . 1b
c The third quarter of the tax year . . . . . . . . . . . . . . . 1c
d The fourth quarter of the tax year . . . . . . . . . . . . . . . 1d
2 Number of quarter-ends the foreign corporation was a CFC during the tax year . . . . . . . . 2
3 Average amount of U.S. property held (directly or indirectly) by the CFC as of the close of each
quarter of the tax year. (Add lines 1a through 1d. Divide this amount by the number on line 2.) . . .
3
4 U.S. shareholder’s pro rata share of the amount on line 3 . . . . . . . . . . . . . . . 4
5 Earnings and prots described in section 959(c)(1)(A) with respect to the U.S. shareholder after
reductions (if any) for current year distributions . . . . . . . . . . . . . . . . . .
5
6 Section 956(a)(1) amount. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . 6
7 Applicable earnings:
a Current year earnings and prots . . . . . . . . . . . . . . .
7a
b Line 7a plus accumulated earnings and prots . . . . . . . . . . 7b
8 Enter the greater of line 7a or line 7b . . . . . . . . . . . . . . . . . . . . . . 8
9 Distributions made by the CFC during the tax year . . . . . . . . . . . . . . . . . 9
10 Subtract line 9 from line 8 . . . . . . . . . . . . . . . . . . . . . . . . . 10
11
Earnings and prots described in section 959(c)(1) after reductions (if any) for current year distributions
11
12 Applicable earnings. Subtract line 11 from line 10 . . . . . . . . . . . . . . . . . 12
13 Section 956(a)(2) amount. U.S. shareholder’s pro rata share of the amount on line 12 . . . . . 13
14 Section 956(a) amount. Enter the smaller of line 6 or line 13 . . . . . . . . . . . . . . 14
15 Amount of E&P described in section 959(a)(2) with respect to the U.S. shareholder . . . . . . 15
16 Tentative section 956 amount. Subtract line 15 from line 14 . . . . . . . . . . . . . . 16
17 Amount of deduction under section 245A, if any, that the shareholder would be allowed if the
shareholder received a hypothetical distribution within the meaning of Regulations section 1.956-1(a)(2).
If the shareholder is not a U.S. corporation, this amount is zero . . . . . . . . . . . . .
17
18 Section 956 amount. Subtract line 17 from line 16 . . . . . . . . . . . . . . . . . 18
19 Translate the amount on line 18 from functional currency to U.S. dollars at the year-end spot rate (as
provided in section 989(b)). Enter the result here and on line 2 of Schedule I . . . . . . . . .
19
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subsequent quarters should be
recorded as zero on line 1); and
•
In determining applicable earnings,
current year E&P will include only E&P
that are allocable (on a pro rata basis)
to the part of the year during which the
foreign corporation was a CFC.
Instructions for Separate
Schedules
Schedule E
Use Schedule E, Part I, to report taxes
paid, accrued, or deemed paid under
section 960(b)(2) by a foreign
corporation for which a foreign tax
credit is allowed, and use Schedule E,
Part III, to report taxes for which a
credit may not be taken.
Note. Schedule E must be completed
even for noncorporate U.S.
shareholders. Certain noncorporate
U.S. shareholders may elect under
section 962 to be taxed at corporate
rates on section 951(a) amounts and
the global intangible low-taxed income
(GILTI) inclusion for the tax year, so as
to be able to claim a credit for certain
foreign taxes paid or accrued by the
CFC. The information reported on
Schedule E is relevant for U.S.
shareholders making this election.
Also, timely information reporting is
important to the extent the U.S.
shareholder chooses to amend its
return in a later year to make the
election under section 962. Schedules
E and E-1 are also relevant for
noncorporate U.S. shareholders who
do not make a section 962 election.
Taxes paid or accrued with respect to
distributions of PTEP by the U.S.
shareholder, while not reported on
Form 5471, are subject to different
rules regarding creditability and
foreign currency gain or loss. See, for
example, sections 965(g) and 986(c).
Therefore, it is important that the U.S.
shareholder track the PTEP groups to
follow the different rules for each
group.
Name of person filing Form 5471.
The name of the person filing Form
5471 is generally the name of the U.S.
person described in the applicable
category or categories of filers (see
Categories of Filers, earlier). However,
in the case of a consolidated return,
enter the name of the U.S. parent in
the field for “Name of person filing
Form 5471.”
Reference ID number of foreign
corporation. If applicable, use the
reference ID number shown on Form
5471, page 1, item 1b(2).
Lines a, b, and c. Complete a
separate Schedule E for each
applicable separate category of
income. Enter the appropriate code
on line a (above Part I). To determine
the appropriate code, see
Categories
of Income in the Instructions for Form
1118, Foreign Tax
Credit—Corporations. Taxes with
respect to all categories of income
listed in the Instructions for Form
1118, with the exception of foreign
branch income, may need to be
reported. A foreign corporation may
accrue or pay taxes properly
attributable to an income group within
the general category, passive
category, or section 901(j) category.
See Regulations section 1.960-1(d)(2)
(ii). A foreign corporation may accrue
or pay taxes properly attributable to a
PTEP group within any of the separate
categories of income, with the
exception of foreign branch category
income. See Regulations section
1.960-3(c)(1).
If code 901j is entered on line a,
enter on line b the country code for
the sanctioned country using the
two-letter codes (from the list at
IRS.gov/CountryCodes).
If one of the RBT codes is entered
on line a, enter on line c the country
code for the treaty country using the
two-letter code (from the list at
IRS.gov/CountryCodes).
Note. Do not complete a separate
Schedule E for taxes assigned to the
section 951A category. Taxes paid,
accrued, or deemed paid with respect
to section 951A PTEP that is in the
section 951A category are reported
on the Schedule E completed for the
general category.
Important. In addition to the
separate category codes referred to
above, if you have more than one of
the categories of income referred to
above, you must complete and file a
separate Schedule E (including
Schedule E-1) using code “TOTAL”
that aggregates all amounts listed for
each line and column of all other
Schedules E and E-1.
Part I—Taxes for Which a
Foreign Tax Credit Is Allowed
In Part I, Section 1, list income, war
profits, and excess profits taxes
(income taxes) paid or accrued to
each foreign country or U.S. territory
for the foreign corporation’s foreign tax
year(s) that ends with or within its U.S.
tax year.
In Part I, Section 2, report taxes
deemed paid under section 960(b)(2)
with respect to distributions of PTEP
from a lower-tier foreign corporation to
the foreign corporation with respect to
which this Schedule E (Form 5471) is
being completed.
Amounts not reported in Part I. Do
not report taxes that are not
creditable, including taxes for which a
credit is disallowed under section
245A(d) or section 901(j), (k), (l), or
(m); or suspended under section 909.
Such taxes are reported in Part III. A
credit is never allowed for taxes paid
or accrued to the United States. Do
not report such taxes in Part I. Report
them instead in Part III.
Adjustments to foreign income tax-
es. Adjustments to foreign income
taxes paid or accrued in a prior year
should not be reflected on Schedule E
in the year of adjustment. Instead,
they should be reported in the year to
which such taxes relate. This may
require an amended return. See
section 905(c). Adjustments include
additional payments, refunds, and
downward adjustments for accrued
foreign taxes that are not paid within 2
years after the close of the tax year to
which such taxes relate.
Comparison to income tax ex-
pense reported on Form 5471,
Schedule C. The foreign income
taxes reported on Schedule E may
differ from the amount reported as
income tax expense on line 21a of
Schedule C. This is due in part to
differences in the accounting for
foreign tax redeterminations,
disallowed taxes, and foreign income
taxes reported in Other
Comprehensive Income for U.S.
GAAP purposes.
Comparison to income tax ex-
pense reported on Schedule H
(Form 5471). The taxes added or
deducted on line 2g of Schedule H
include both foreign income taxes
reported in Part I of Schedule E as
well as the taxes reported in Part III of
Instructions for Form 5471 (Rev. 01-2024)
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Schedule E that are not creditable
foreign income taxes.
Section 1—Taxes Paid or
Accrued Directly by Foreign
Corporation
Column (a)
Amounts reported on Schedule E may
include taxes paid or accrued by the
foreign corporation or a pass-through
entity (for example, a partnership or
disregarded entity) owned by the
foreign corporation. If the tax is paid or
accrued by the pass-through entity,
enter the name of such entity instead
of the name of the foreign corporation.
If the tax paid or accrued by the
foreign corporation is attributable to a
branch or qualified business unit
(QBU) of the foreign corporation,
enter the name of the branch or QBU.
Column (b)
Enter the EIN or reference ID number
of the payor entity listed in column (a).
A reference ID number is required
only in cases in which no EIN was
entered for the foreign corporation or
pass-through entity owned by the
foreign corporation. Filers are
permitted to enter both an EIN and a
reference ID number. See
Item
1b(2)—Reference ID Number, earlier,
for more information about reference
ID numbers.
Column (c)
Check the box if the foreign income
taxes reported in column (j) were paid
or accrued by the foreign corporation
during prior tax years and were
suspended due to the application of
the rules of section 909 and that are
unsuspended in the current year
because related income is taken into
account by the foreign corporation,
certain U.S. corporate owners of the
foreign corporation, or a member of
such U.S. corporate owner’s
consolidated group.
Column (d)
Enter the two-letter codes (from the
list at IRS.gov/CountryCodes) of all
foreign countries and U.S. territories
to which taxes were paid or accrued. If
taxes were paid or accrued to more
than one country with respect to the
same income, include each tax paid
or accrued to a different country on
separate lines.
Column (e)
The foreign tax year under foreign tax
law may not be the same tax year as
the U.S. tax year of the foreign
corporation. If the tax is attributable to
a pass-through entity owned by a
foreign corporation, the foreign tax
year of the foreign corporation within
which such pass-through entity’s year
ends should be reported on this line.
Column (g)
Enter the income reported to the
foreign tax authority under foreign tax
law. This should be the foreign taxable
income base for determining the tax
reported in column (j).
Column (h)
Check the box if taxes were paid on
U.S. source income.
Column (i)
Enter the three-letter currency code
for the local currency in which the tax
is payable. Currency codes are
available at
six-group.com/en/
products-services/financial-
information/data-
standards.html#scrollTo=currency-
codes.
Column (j)
Enter the tax paid or accrued in the
local currency in which tax is payable
and not the functional currency of the
payor or foreign corporation. See
sections 986(a) and 905(c).
Columns (k) and (l)
Enter the exchange rate in column (k)
and the translated dollar amount in
column (l).
Translate the taxes entered in
column (j) into dollars at the average
exchange rate for the tax year to
which the tax relates unless one of the
exceptions below applies. See section
986(a).
Exceptions. If one of the following
exceptions applies, use the exchange
rate in effect on the date the foreign
corporation paid the tax.
1.
The tax is paid before the
beginning of the year to which the tax
relates.
2. Accrued taxes are not paid
before the date 2 years after the close
of the tax year to which such taxes
relate.
3. There is an election in effect
under section 986(a)(1)(D) to
translate foreign taxes using the
exchange rate in effect on the date of
payment.
4. The foreign corporation reports
on the cash basis. See section 986(a).
5. The foreign tax is denominated
in an inflationary currency. See
section 986(a)(1)(C).
Report the exchange rate using the
“divide-by convention” specified under
Reporting exchange rates on Form
5471, earlier.
Column (m)
Enter the tax in functional currency.
E&P takes into account foreign
income taxes paid or accrued by the
foreign corporation. The foreign
corporation's E&P is determined in the
foreign corporation's functional
currency. See section 986(b).
Line 5
Report the total of the amounts listed
in column (l) on this line 5. This total
should also be reported on
Schedule E-1, line 4.
Line 6
Report the total of the amounts listed
in column (m) on this line 6. This total
and the amount reported on line 3 of
Schedule E, Part III, are the
appropriate reduction to current year
E&P for income taxes. See
Schedule H, line 2g.
Example. CFC1, a foreign
corporation, with reference ID number
1000123, pays or accrues tax of 10u =
$10 to Country X on 50u of Country X
foreign source taxable income with
respect to CFC1’s foreign tax year
ending December 31, 2023. CFC1
has a December 31 tax year end for
both foreign and U.S. tax purposes.
Also, CFC1 receives in the tax year
ending December 31, 2023, a refund
of 3u from Country X on 15u of foreign
source income with respect to CFC1’s
tax year ending December 31, 2017,
translated to equal $5, and on which
the original liability was $7. Therefore,
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the revised tax liability is $2. All taxes
relate to general category income.
Also assume for both years that the
local currency in which the tax was
paid was the same as the foreign
corporation’s functional currency. The
country code for Country X is XX.
The following entries should be
made on the 2023 Schedule E (Form
5471), Part I, Section 1, for CFC1 with
respect to the General Category
Income separate category.
•
Line 1, column (a): CFC1
•
Line 1, column (b): 1000123
•
Line 1, column (d): XX
•
Line 1, column (e): 2023/12/31
•
Line 1, column (f): 2023/12/31
•
Line 1, column (g): 50u
•
Line 1, column (i): u
•
Line 1, column (j): 10u
•
Line 1, column (k): 1.0000
•
Line 1, column (l): $10
•
Line 1, column (m): 10u
An amended 2017 tax return
should be filed by or for the U.S.
person(s) with respect to which Form
5471 was required and that return
should include an amended Form
5471. The amended Form 5471
should include an attachment with a
schedule that looks like the current
version of Schedule E, Part I, Section
1, with the following entries for the
general category of income.
•
Line 1, column (a): CFC1
•
Line 1, column (b): 1000123
•
Line 1, column (d): XX
•
Line 1, column (e): 2017/12/31
•
Line 1, column (f): 2017/12/31
•
Line 1, column (g): 15u
•
Line 1, column (i): u
•
Line 1, column (j): 1.20u
•
Line 1, column (k): 1.6667
•
Line 1, column (l): $2
•
Line 1, column (m): 1.20u
Section 2—Taxes Deemed Paid
(Section 960(b))
The purpose of Section 2 is to track
deemed-paid foreign income taxes
with respect to current year PTEP
distributions from lower-tier foreign
corporations to the foreign corporation
with respect to which this Schedule E
(Form 5471) is being completed (“the
foreign corporation”).
Report a PTEP distribution by a
lower-tier foreign corporation in
Section 2 only if foreign income taxes
are deemed paid under section
960(b) by the foreign corporation with
respect to such PTEP distribution.
The only foreign taxes of the
distributing foreign corporation that
may be treated as deemed paid under
section 960(b) are foreign taxes paid,
accrued, or deemed paid by the
distributing foreign corporation with
respect to the receipt of a PTEP
distribution from another lower-tier
foreign corporation below the
distributing foreign corporation.
Accordingly, there can be no
deemed-paid foreign taxes with
respect to a PTEP distribution from a
lower-tier foreign corporation that is
the lowest foreign-tier foreign
corporation in a chain, and therefore
no such distributions will be reported
in Section 2. See Regulations section
1.960-1(d)(3)(ii)(B).
Any foreign income taxes paid or
accrued (but not deemed paid) by the
foreign corporation with respect to a
PTEP distribution from a lower-tier
foreign corporation (whether or not
such PTEP distribution is reported in
Section 2), such as withholding taxes
imposed on the PTEP distribution, are
reported in Section 1.
Column (a)
Enter the name of each lower-tier
foreign corporation that made a PTEP
distribution with respect to which a
deemed-paid tax is determined in the
current year by the foreign corporation
with respect to which this Schedule E
(Form 5471) is being completed.
Column (b)
Enter the EIN or reference ID number
of the lower-tier foreign corporation
listed in column (a). A reference ID
number is required only in cases in
which no EIN was entered for the
lower-tier foreign corporation. Filers
are permitted to enter both an EIN and
a reference ID number. See
Item
1b(2)—Reference ID Number, earlier,
for more information about reference
ID numbers.
Column (c)
Enter the applicable two-letter code
(from the list at IRS.gov/
CountryCodes).
Column (d)
Enter the code which describes the
PTEP group classification (as set forth
in Regulations section 1.960-3(c)(2)).
Please enter the applicable PTEP
group code from the following list.
PTEP Group Classification
Taxes related to
previously taxed
E&P
PTEP Group Code
Reclassified section
965(a) PTEP
R965a
Reclassified section
965(b) PTEP
R965b
General section
959(c)(1) PTEP
959c1
Reclassified section
951A PTEP
R951A
Reclassified section
245A(d) PTEP
R245Ad
Section 965(a) PTEP 965a
Section 965(b) PTEP 965b
Section 951A PTEP 951A
Section 245A(d)
PTEP
245Ad
Section 951(a)(1)(A)
PTEP
951a1A
Column (e)
Enter the year in which the U.S.
shareholder included income of the
lower-tier foreign corporation under
section 951(a) or section 951A and
established the PTEP account to
which the distribution is attributed.
This is the annual PTEP account. See
Regulations section 1.960-3(c)(1).
Column (f)
Enter the PTEP distribution with
respect to the PTEP group within the
annual PTEP account identified in
column (d) and column (e) in the
functional currency of the distributing
lower-tier foreign corporation. If there
is a PTEP distribution related to more
than one PTEP group within an annual
PTEP account, complete a separate
line for each PTEP group within an
annual PTEP account.
Column (g)
Enter the total amount of the lower-tier
foreign corporation’s PTEP in the
PTEP group within the annual PTEP
account identified in column (d) and
column (e). Enter such amount in the
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functional currency of the distributing
lower-tier foreign corporation.
Column (h)
Enter the total amount of the lower-tier
foreign corporation’s PTEP group
taxes with respect to the PTEP group
within the annual PTEP account
identified in column (d) and column
(e). Enter this amount in U.S. dollars.
To determine the appropriate
translation rate, see section 986(a).
Column (i)
Enter the U.S. dollar amount of the
recipient foreign corporation's income
taxes deemed paid that are properly
attributable to the PTEP distribution
reported in column (f) and not
deemed to have been paid by the
domestic corporation for any prior tax
year.
Note. With respect to distributions of
PTEP resulting from inclusions under
section 965, report the taxes properly
attributable to such PTEP without
reduction for the foreign tax credit
disallowance.
Part III—Taxes for Which
Foreign Tax Credit Is
Disallowed
Use Part III to report taxes for which
foreign tax credits are not allowed.
While not allowed as a credit, such
taxes are taken into account in
determining the foreign corporation’s
E&P.
Do not enter taxes that do not meet
the criteria under Regulations section
1.901-2.
Columns (a) and (b)
See Part I—Taxes for Which a Foreign
Tax Credit Is Allowed, earlier, for
instructions regarding these columns.
Column (c)
Enter foreign income taxes that are
disallowed under section 901(j),
generally foreign income taxes paid or
accrued to certain sanctioned
countries.
Column (d)
Enter foreign income taxes that are
disallowed under section 901(k),
which generally applies to certain
taxes paid on dividends if the
minimum holding period is not met
with respect to the underlying stock,
or if the corporation is obligated to
make related payments with respect
to positions in similar or related
property. Also enter foreign income
taxes disallowed under section 901(l),
which generally applies to certain
taxes paid on gain and income other
than dividends if the minimum holding
period is not met with respect to the
underlying property, or if the
corporation is obligated to make
related payments with respect to
positions in similar or related property.
Column (e)
In the case of a covered asset
acquisition (as defined in section
901(m)(2)), enter the disqualified
portion of any tax determined with
respect to the income or gain
attributable to the relevant foreign
assets (section 901(m)).
Note. This rule generally applies to
covered asset acquisitions after
December 31, 2010. See Regulations
sections 1.901(m)-1 through
1.901(m)-8 for additional information.
Note that the rules contained in these
regulations have later effective dates.
Column (f)
Enter the amount of taxes paid or
accrued by the foreign corporation to
the United States. No credit is allowed
for these taxes because only foreign
income taxes paid or accrued to a
foreign country or territory of the
United States are allowed as a credit.
See section 901(b).
Column (g)
Report foreign income taxes related to
the current tax year that have been
suspended due to the rules of section
909.
Column (h)
Enter taxes for which a foreign tax
credit is disallowed other than those
detailed in columns (c) through (g).
Such taxes may include, but are not
limited to, taxes attributable to section
245A(d) income, certain taxes on the
purchase or sale of oil and gas
(section 901(f)), certain taxes used to
provide subsidies (section 901(i)), and
taxes for which no credit is allowed
because of the boycott provisions of
section 908.
Column (i)
For each line in this column, enter the
total amount for each payor in
columns (c) through (h).
Line 3
Total each amount in column (i) and
enter on line 3. All amounts should be
in functional currency.
Line 4
Translate the line 3 amount from
functional currency to U.S. dollars
using, in general, the average
exchange rate as defined by section
989(b)(3).
Schedule E-1
Use Schedule E-1 (on pages 2 and 3
of separate Schedule E) to report the
cumulative balance of foreign income
taxes paid or accrued by a CFC by
separate category of income.
Enter amounts in U.S. dollars
unless otherwise noted.
Columns (a), (b), and (c)
In columns (a), (b), and (c), report
only the foreign income taxes the
foreign corporation pays or accrues
attributable to the subpart F income
group, the tested income group, and
the residual income group,
respectively. Use Schedule Q to
determine the taxes attributable to
each income group. Do not include
foreign income taxes paid or accrued
by the foreign corporation in its other
tax years beginning after December
31, 2017, or that do not relate to the
current tax year. Do not include
foreign income taxes that are
disallowed and are reported on
Schedule E, Part III. Do not include
taxes paid or accrued by the foreign
corporation with respect to its receipt
of a PTEP distribution, even if those
amounts were included in the total
entered on line 5, column (l), of
Schedule E, Part I, Section 1. These
are reported in column (e). Do not
include taxes deemed paid by the
foreign corporation with respect to its
receipt of a PTEP distribution. These
are also reported in column (e).
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On line 9, report reductions for the
portion of such taxes that are deemed
paid by a U.S. shareholder with
respect to an inclusion under section
951(a) or 951A. On line 15, report
reductions for foreign income taxes
attributable to the column (b) tested
income group that are not deemed
paid as a result of the inclusion
percentage or the 80% limitation.
Also, on line 15, report any other
reductions to the three income groups
in columns (a), (b), and (c) necessary
to achieve a zero balance on line 16.
Attach a statement explaining why
such taxes were not deemed paid
under section 960. The balance of
foreign income taxes paid or accrued
with respect to the three income
groups that is entered on line 16
should equal zero after taking into
account the reductions.
Column (d)
Use column (d) to report taxes
suspended under section 909.
Columns (e)(i) through (e)(x)
Report foreign income taxes paid or
accrued with respect to E&P
described in section 959(c)(1) and (c)
(2). See the instructions for
Schedule J, Column (e), later, for
specific information about the ten
PTEP group columns. Also see
Regulations section 1.960-3(c)(2) for
additional information regarding the
ten PTEP groups.
Specific Instructions Related to
Lines 1 Through 16
Line 1a. This amount should equal
the amount that was reported as the
balance on line 16 of the prior year
Schedule E-1.
Line 1b. If the balance on line 16 of
prior year Schedule E-1 was adjusted
after the filing of the original prior year
Form 5471, such adjustments should
be reflected on line 1b. For example, if
there were errors in the original
computation of foreign income taxes,
an adjustment would be included on
this line. See
Corrections to Form
5471, earlier. Do not include any
adjustments required to be reported
on line 7 or 12. Attach a statement
that includes an explanation and the
dollar amount of each such
adjustment, along with a total that
equals the amount entered on line 1b.
Line 2.
Use line 2 to reflect
adjustments to a U.S. person’s foreign
tax credit as a result of redetermined
foreign income taxes. If a U.S. person
has appropriately amended the
immediately prior year return,
including its Schedule E-1, to
redetermine its U.S. tax liability, no
adjustment should be included on this
line. This line is only applicable if a
U.S. person appropriately amended a
prior year return and there were
intervening years between the
amended year return and the current
year return for which an amended
return was not filed. If so, an
adjustment for the prior year amended
return (and its impact on intervening
years) should be reflected on line 2.
Line 3a. A tax reported on
Schedule E, Part I, Section 1, line 5,
column (l), for which column (c) was
checked because such tax was
unsuspended in the current year,
should be included as a positive
amount in column (a), (b), (c), or (e),
as appropriate. Such tax should also
be reflected as a negative amount in
column (d).
Line 3b. Include as a positive amount
in column (d) foreign income taxes
related to the current tax year that
have been suspended due to the rules
of section 909. Such taxes are also
reported on Schedule E, Part III,
column (g).
Line 4. The total reported on
Schedule E, Part I, Section 1, line 5,
column (l), should be separated into
columns (a) through (e) according to
the type of income or E&P to which
such taxes relate. Therefore, for
example, taxes paid or accrued with
respect to the receipt of a PTEP
distribution are reported in column (e),
and taxes paid or accrued with
respect to current year subpart F
income of the foreign corporation are
reported in column (a).
Example 1. Domestic
Corporation, a U.S. shareholder,
wholly owns the only class of stock of
CFC1, a foreign corporation. CFC1, in
turn, wholly owns the only class of
stock of CFC2, a foreign corporation.
CFC2, in turn, wholly owns the only
class of stock of CFC3, a foreign
corporation. The functional currency
of Domestic Corporation, CFC1,
CFC2, and CFC3 is the U.S. dollar.
During Year 1, CFC3 has subpart F
income, after foreign income tax, of
$100 with respect to which it pays $20
of foreign income tax. Such tax is
properly attributable to subpart F
income of CFC3 and is reported on
line 4, column (a), of Schedule E-1 of
CFC3’s Form 5471. During Year 1,
Domestic Corporation reports an
inclusion under section 951(a)(1) of
$100 and deemed paid taxes of $20
under section 960(a) as a result of
subpart F income of CFC3. During
Year 2, CFC3 distributes $40 to CFC2.
CFC2 pays withholding tax of $4 on
the distribution from CFC3. Such tax
is a tax related to previously taxed
earnings and profits that were
included as subpart F income and is
reported on line 4, column (e)(x), of
Schedule E
-1 of CFC2’s Form 5471.
Line 5. Report taxes carried over to a
foreign surviving corporation after an
acquisition by a foreign corporation of
the assets of another foreign
corporation in a transaction described
in section 381. See Regulations
section 1.367(b)-7(b)(1) and (d)(1).
Line 6. Enter foreign income taxes
properly attributable to PTEP and not
previously deemed paid (from
Schedule E, Part I, Section 2, line 5,
column (i)). The total reported on
Schedule E, Part I, Section 2, line 5,
column (i), should be broken out on
Schedule E-1, line 6, columns (e)(i)
through (e)(x), based on the type of
PTEP to which such taxes relate.
Example 2. The facts are the
same as in
Example 1, except that, in
addition, CFC2 distributes $36 to
CFC1 in Year 3. CFC1 is deemed to
pay the $4 of withholding tax paid by
CFC2 in Year 2. See section 960(b).
Such tax is attributable to previously
taxed subpart F income and is
reported on line 6, column (e)(x), of
Schedule E
-1 of CFC1’s Form 5471.
Such tax is also reported as a
negative number on line 10, column
(e)(x), of Schedule E
-1 of CFC2’s
Form 5471.
Line 7. Attach a statement with a
description and the amount of any
adjustments required before taking
into account taxes deemed paid by
the foreign corporation. Do not include
any adjustments required to be
reported on line 1b or 12.
Line 9. A domestic corporation is
deemed to pay foreign income taxes
attributable to inclusions under
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section 951(a)(1). See section 960(a).
Amounts reported on line 9 should be
negative numbers.
If a domestic corporation includes
an amount in income under section
951A, such domestic corporation is
deemed to pay foreign income taxes
equal to 80% of the product of (a)
such domestic corporation’s inclusion
percentage, multiplied by (b) the
aggregate tested foreign income taxes
paid or accrued by the CFC. For the
computation of such amount, see
Form 1118, Schedule D. Amounts
reported on line 9 should be negative
numbers. See line 15 with respect to
reporting taxes not deemed paid as a
result of the inclusion percentage or
the application of the 80% limitation.
Line 10. A domestic corporation is
deemed to pay foreign income taxes
with respect to distributions of PTEP.
See Section 960(b)(1). Amounts
reported on line 10 should be negative
numbers.
Taxes are deemed paid by a
domestic corporation that is a U.S.
shareholder or a foreign corporation
that is a CFC with respect to
distributions of PTEP that it receives.
Report on line 10, column (e), the
taxes that relate to PTEP of the
foreign corporation that are deemed
paid by a shareholder of the foreign
corporation, either an upper-tier
foreign corporation or a U.S.
shareholder, with respect to a
distribution of PTEP made by the
foreign corporation.
Example 3. The facts are the
same as in Example 2, except that
during Year 4, CFC1 distributes $36 to
Domestic Corporation. Domestic
Corporation is deemed to pay the $4
of withholding taxes deemed paid by
CFC1 in Year 3 and paid by CFC2 in
Year 2. A negative $4 will be recorded
on line 10, column (e)(x), of CFC1’s
Form 5471, Schedule E-1.
See Example 2, earlier, for
reporting on line 10, column (e)(x), of
Schedule E-1 of CFC2's Form 5471
with respect to taxes on distributions
from CFC3 to CFC2.
Line 11. Foreign income taxes
reclassified from section 959(c)(2)
PTEP to section 959(c)(1) PTEP
should be reported as negative
numbers in columns (e)(vi) through (e)
(x) and as positive numbers in
columns (e)(i) through (e)(v).
Example 4.
The facts are the
same as in Example 1, except that
during Year 2, CFC2 invests $40 in
U.S. property. At the time of
investment in such property, CFC2
continues to maintain a $36 balance
in its section 959(c)(2) PTEP account.
CFC2 reclassifies such amount as
section 959(c)(1) PTEP on
Schedule J. Accordingly, $4 of foreign
income taxes related to section 959(c)
(2) PTEP is reclassified to section
959(c)(1) PTEP on line 11, column (e)
(iii). A negative $4 will be recorded on
line 11, column (e)(x), and a positive
$4 will be recorded on line 11, column
(e)(iii).
Line 12. Attach a statement with a
description and the amount of any
required adjustments to taxes of the
foreign corporation not already taken
into account on this schedule. An
example of amounts reported on
line 12 is taxes attributable to PTEP
distributions to shareholders ineligible
to claim a foreign tax credit under
section 960(b)(1) (such as foreign
corporations).
Line 15. Enter the reduction to the
column (b) tested income group for
tested income taxes not deemed paid.
See Regulations section 1.960-1. This
includes taxes attributable to the
column (b) tested income group that
were not deemed paid as a result of
the domestic corporation’s inclusion
percentage or as a result of the
application of the 80% limit. See
section 960(d). Enter the reduction to
the three income groups in columns
(a), (b), and (c) for other taxes not
deemed paid. See Regulations
section 1.960-1. This includes taxes
that are properly attributable to a
subpart F income group but were not
deemed paid because there was no
subpart F income with respect to that
income group in the current year.
Note. If necessary, enter negative
amounts on line 15 of columns (a),
(b), and (c) in amounts sufficient to
reduce line 16, columns (a), (b), and
(c), to zero. Attach a statement
explaining why such taxes were not
deemed paid under section 960.
Schedule G-1
Note. A separate Schedule G-1 must
be filed for each cost sharing
arrangement (CSA) as defined in
Regulations section 1.482-7(b) in
which the foreign corporation was a
controlled participant (as defined in
Regulations section 1.482-7(j)) during
the tax year. All amounts should be
reported in U.S. dollars.
Name of person filing Form 5471.
The name of the person filing Form
5471 is generally the name of the U.S.
person described in the applicable
category or categories of filers (see
Categories of Filers, earlier). However,
in the case of a consolidated return,
enter the name of the U.S. parent in
the field for “Name of person filing
Form 5471.”
Reference ID number of foreign
corporation. If applicable, use the
reference ID number shown on Form
5471, page 1, item 1b(2).
Question 4. Enter the foreign
corporation’s share of reasonably
anticipated benefits (RAB) for the
CSA during the tax year. See
Regulations section 1.482-7(e) for
rules on a determining and updating
controlled participant’s RAB share. If
the foreign corporation applied more
than one RAB share during the tax
year in determining its share of
intangible development costs (IDCs),
enter the RAB share that was applied
to IDCs incurred at the end of the
year. See Regulations section
1.482-7(d) for more information on
IDCs.
Question 5a. Check the “Yes” box if
the U.S. taxpayer made any platform
contributions as defined in
Regulations section 1.482-7(c) to the
CSA during the tax year. If “Yes,”
complete lines 5b and 5c.
Questions 5b and 5c. Enter the
foreign corporation's RAB share of the
total present value of all platform
contributions made by the U.S.
taxpayer during the tax year with
respect to the foreign corporation on
line 5b. The total present value of all
platform contributions made by the
U.S. taxpayer during the tax year
should be entered even if only a
portion (or none) of the value of those
platform contributions was included in
the U.S. taxpayer's taxable income as
platform contribution transaction
(PCT) payments during the tax year. If
possible, include a reasonable
present value estimate for any PCTs
that are priced using a method that
does not involve the calculation of a
present value. Otherwise, attach a
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brief statement of the reason(s) it is
not possible to include a present value
estimate for one or more PCTs (for
example, no revenue projections for a
PCT that is priced based on a
sales-based royalty from a
comparable uncontrolled transaction).
If the U.S. taxpayer engaged in
multiple PCTs during the tax year with
the foreign corporation and used
different methods to price the PCTs,
check the appropriate boxes on
line 5c to indicate which methods
were selected as the best method for
one or more of the PCTs reported in
the tax year. See Regulations section
1.482-7(g) for more information on the
methods applicable to PCTs.
Questions 6b and 6c. See,
generally, Regulations section 1.482-7
for more information on determining
whether stock-based compensation is
directly identified with, or reasonably
allocable to, the intangible
development activity (IDA) under the
CSA. See Regulations section
1.482-7(d)(3) and Notice 2005-99 for
more information on determining the
measurement and timing of
stock-based compensation IDCs,
including an election available with
respect to options on publicly traded
stock and certain other stock-based
compensation. If the taxpayer made
the election described in Regulations
section 1.482-7(d)(3)(iii)(B) or Notice
2005-99, the taxpayer should attach a
statement to Form 5471 explaining
that the taxpayer made such election
and include in such statement the
total amount of stock-based
compensation taken into account as
an IDC for the tax year pursuant to
such election. If the taxpayer attaches
the statement described in the
previous sentence, then in the entry
space provided for line 6b the
taxpayer should include the total
amount of stock-based compensation
taken into account as an IDC,
including stock-based compensation
pursuant to the election described
above and any not subject to such
election.
Check the appropriate box on
line 6c to indicate whether any
stock-based compensation was
granted during the term of the CSA to
individuals who performed functions
in business activities that generate
cost-shared intangibles that were not
treated as directly identified with, or
reasonably allocable to, the IDA as
defined in Regulations section
1.482-7(d)(1)(i). This would include
stock-based compensation granted in
earlier years (which could give rise to
deductions in the current tax year) that
were not treated as identified with or
reasonably allocable to the IDA.
Questions 7a and 7b. For the tax
year, enter the total amount of IDCs
for the CSA on line 7a. See
Regulations section 1.482-7(d) for
more information on IDCs.
On line 7b, enter the amount of
IDCs allocated to the foreign
corporation for the tax year based on
the foreign corporation’s RAB share.
Schedule H
Use Schedule H to report the foreign
corporation's current year E&P for
U.S. tax purposes. Enter the amounts
on lines 1 through 5c in the CFC's
functional currency.
Certain filers may be able to use
alternative information (as defined in
section 3.01 of Rev. Proc. 2019-40) to
determine certain amounts in this
schedule. See Item F—Alternative
Information Under Rev. Proc.
2019-40, earlier, for more details.
Note. A separate Worksheet H-1
must be attached for each person
described in Categories 4, 5a, 5b, and
5c with respect to which reporting is
furnished on this Form 5471 that is an
applicable corporation within the
meaning of section 59(k). Worksheet
H-1 and instructions are provided later
in these instructions.
Note. Category 5b and 5c filers are
not required to file Schedule H for
foreign-controlled CFCs.
Name of person filing Form 5471.
The name of the person filing Form
5471 is generally the name of the U.S.
person described in the applicable
category or categories of filers (see
Categories of Filers, earlier). However,
in the case of a consolidated return,
enter the name of the U.S. parent in
the field for “Name of person filing
Form 5471.”
Reference ID number of foreign
corporation. If applicable, use the
reference ID number shown on Form
5471, page 1, item 1b(2).
Special rules for DASTM. If the
foreign corporation uses DASTM,
enter on line 1 the dollar GAAP
income or (loss) from line 22 of
Schedule C. Enter on lines 2a through
4 the adjustments made in figuring
current E&P for U.S. tax purposes.
Report these amounts in U.S. dollars.
Enter on line 5b the DASTM gain or
loss figured under Regulations section
1.985-3(d).
Lines 2a through 2i. Certain
adjustments (required by Regulations
section 1.964-1(b) and (c)) must be
made to the foreign corporation's
line 1 net book income or (loss) to
determine its current year E&P. These
adjustments may include both positive
and negative adjustments to conform
the foreign book income to U.S. GAAP
and to U.S. tax accounting principles.
If the foreign corporation's books are
maintained in functional currency in
accordance with U.S. GAAP, enter on
line 1 the functional currency GAAP
income or (loss) from line 22 of
Schedule C, rather than starting with
foreign book income, and show
GAAP-to-tax adjustments on lines 2a
through 2i.
Lines 2b and 2c. Generally,
depreciation, depletion, and
amortization allowances must be
based on the historical cost of the
underlying asset, and depreciation
must be figured according to section
167. However, if 20% or more of the
foreign corporation's gross income is
from U.S. sources, depreciation must
be figured on a straight line basis
according to Regulations section
1.312-15.
Line 2f. Inventories must be taken
into account according to the rules of
sections 471 (incorporating the
provisions of section 263A) and 472
and the related regulations.
Line 2g. See the instructions for
Schedule C, Line 21, earlier. Reflect
differences between the income tax
expense (benefit) reported for book
purposes and the income taxes
deducted or added to E&P. Such
differences include, for example,
deferred income tax expenses,
uncertain tax positions, intraperiod
allocations, adjustments made after
closing the financial statements
(post-closing adjustments) and not
reflected in income tax expense
(benefit), and the adjustment for a
foreign tax redetermination that
required a redetermination of the U.S.
tax liability.
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Line 2h. Enter the adjustment to
foreign currency gains or losses.
Attach a statement with a description
of the gain or losses.
In the case of section 988 losses,
determine whether Form 8886 needs
to be completed, as described under
Additional Filing Requirements,
earlier.
Line 2i. Enter the net amount of any
additional adjustments not included
on lines 2a through 2h. List these
additional adjustments on a separate
statement. Attach this statement to
Form 5471. Schedule H is only
prepared for the general, passive, and
section 901(j) categories of income.
For example, if U.S. GAAP income
reported on Schedule C contains
items related to PTEP, include the
necessary adjustments on line 2i of
Schedule H for the appropriate
category of income (general or
passive) and attach a statement that
itemizes and explains those
adjustments. Report adjustments for
foreign taxes related to the PTEP on
line 2g. This adjustment is necessary
because foreign taxes imposed on
PTEP distributions do not reduce
current year E&P. Foreign taxes
imposed on PTEP distributions
reduce PTEP and are reported on
Schedule J, line 6.
Example. Domestic Corporation, a
U.S. shareholder, wholly owns the
only class of stock of CFC1, a foreign
corporation. CFC1, in turn, wholly
owns the only class of stock of CFC2,
a foreign corporation. During Year 1,
Domestic Corporation reports an
inclusion under section 951(a)(1) of
$100 as a result of subpart F income
of CFC2. During Year 2, CFC2
distributes $40 to CFC1. CFC1 pays
withholding tax of $4 on the
distribution from CFC2. Such tax is
related to previously taxed subpart F
income. On Domestic Corporation’s
financial statements, Domestic
Corporation reports the $4 withholding
tax as current income tax expense.
Domestic Corporation reports on
CFC1’s Form 5471, Schedule H,
line 2g, a positive adjustment for the
$4 of tax on the PTEP distribution.
Line 5b. DASTM gain or (loss),
reflecting unrealized exchange gain or
loss, should be entered on line 5b
only for foreign corporations that use
DASTM.
Line 5c. The line 5c current year E&P
amount may include amounts with
respect to the general category,
passive category, or section 901(j)
category. See Regulations section
1.960
-1(d)(2). Enter on lines 5c(i),
5c(ii), 5c(iii)(A), 5c(iii)(B), 5c(iii)(C),
and 5c(iii)(D), as applicable, the
portion of the line 5c current year E&P
amount with respect to each
applicable category of income. If
applicable for lines 5c(iii)(A), 5c(iii)(B),
5c(iii)(C), and 5c(iii)(D), also enter the
country code for the sanctioned
country using the two-letter code
(from the list at
IRS.gov/
CountryCodes).
Note. The amounts reported on
line 5c include both foreign source
and U.S. source income.
Line 5d. Enter the line 5c functional
currency amount translated into U.S.
dollars at the average exchange rate
for the foreign corporation's tax year.
See section 989(b). Report the
exchange rate using the “divide-by
convention” specified under Reporting
Exchange Rates on Form 5471,
earlier. If the foreign corporation uses
DASTM, enter on line 5d the same
amount entered on line 5c.
Line 5e. Enter the exchange rate
used in computing line 5d. Report the
exchange rate using the “divide-by
convention” specified under
Reporting
Exchange Rates on Form 5471,
earlier.
Blocked income. The E&P of the
foreign corporation, as reflected on
Schedule H, must not be reduced by
all or any part of such E&P that could
not have been distributed by the
foreign corporation due to currency or
other restrictions or limitations
imposed under the laws of any foreign
country.
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Worksheet H-1
Complete a separate Worksheet H-1 in machine-readable Excel format for each person described in Categories 4, 5a, 5b, and 5c with
respect to which reporting is furnished on this Form 5471 that is an applicable corporation within the meaning of section 59(k).
Filer’s Pro Rata Share of CFC Adjusted Net Income or Loss for Corporate Alternative Minimum Tax
1 Net income (or loss) set forth on the applicable nancial statement . . . . . . . . . . . . 1
Net
additions
Net
subtractions
2 Adjustments made to line 1 (see instructions)
a Statements covering different taxable years . . . . .
2a
b Consolidated nancial statements . . . . . . . . . 2b
c Consolidated returns . . . . . . . . . . . . . 2c
d Treatment of dividends and other amounts . . . . . . 2d
e Treatment of partnerships . . . . . . . . . . . 2e
f Effectively connected income . . . . . . . . . . 2f
g Adjustments for certain taxes . . . . . . . . . . 2g
h Adjustments with respect to disregarded entities . . . . 2h
i Depreciation . . . . . . . . . . . . . . . . 2i
j Other adjustments (see instructions) . . . . . . . . 2j
3 Total net additions . . . . . . . . . . . . . . 3
4 Total net subtractions . . . . . . . . . . . . . 4
5a Adjusted net income or loss (line 1 plus line 3 minus line 4) . . . . . . . . . . . . . . 5a
b
Filer’s pro rata share of line 5a (see instructions) . . . . . . . . . . . . . . . . . .
5b
c Adjusted net income or loss in U.S. dollars (see instructions) . . . . . . . . . . . . . . 5c
d Enter exchange rate used for line 5c . . . . . . . . . . . . . .
5d
Worksheet H-1 Instructions
Use Worksheet H-1 to report the
CFC’s adjusted net income or loss for
corporate alternative minimum tax
(CAMT) purposes. Enter the amounts
on lines 1 through 5b in the CFC’s
functional currency.
Lines 2a through 2j. Certain
adjustments (required by section
56A(c)) must be made to the foreign
corporation’s line 1 net book income
or (loss) to determine its adjusted net
income or loss for CAMT purposes.
These adjustments may include both
positive and negative adjustments.
Line 2j. Enter the net amount of any
additional adjustments not included
on lines 2a through 2i. List these
additional adjustments on a separate
statement. Attach this statement to
Form 5471.
Line 5b. Enter the filer’s pro rata
share (determined under rules similar
to the rules under section 951(a)(2))
of the amount on line 5a.
Line 5c. Enter the line 5b functional
currency amount translated into U.S.
dollars for the CFC’s tax year.
Schedule I-1
This schedule is used to report
information determined at the CFC
level with respect to amounts used in
the determination of income
inclusions by U.S. shareholders under
section 951A. The information in this
schedule will be used by the U.S.
shareholder(s) of the CFC to file Form
8992, U.S. Shareholder Calculation of
Global Intangible Low-Taxed Income
(GILTI), and may assist in the
completion of Form 1118 or Form
1116, if applicable.
Enter the amounts on lines 1
through 10c in the CFC's functional
currency. The functional currency
amounts entered on lines 6 through
10c must be converted to U.S. dollars.
Certain filers may be able to use
alternative information (as defined in
section 3.01 of Rev. Proc. 2019-40) to
determine certain amounts in this
schedule. See
Item F—Alternative
Information Under Rev. Proc.
2019-40, earlier, for more details.
Name of person filing Form 5471.
The name of the person filing Form
5471 is generally the name of the U.S.
person described in the applicable
category or categories of filers (see
Categories of Filers, earlier). However,
in the case of a consolidated return,
enter the name of the U.S. parent in
the field for “Name of person filing
Form 5471.”
Separate category. Schedule I-1 is
no longer completed separately for
each applicable category of income.
Therefore, Schedule I-1 is now
completed once (for general category
income, passive category income, or
both). A Schedule I-1 that includes
passive category income on line 6
must include the code for passive
category income (PAS) in the entry
space for separate category (at the
top of Schedule I-1). This is the case
even if the Schedule I-1 also includes
general category income. With
respect to a taxpayer completing
Schedule I-1 with respect to a foreign
corporation with only general category
income (and no passive category
income) on line 6, the taxpayer should
enter the code “GEN” in the entry
space for separate category.
Note. The other reporting
requirements of a taxpayer that
includes passive category income
with general category income on a
Schedule I-1 do not change because
the taxpayer includes passive
category income with general
category income on a Schedule I-1.
For example, the taxpayer may still be
required to complete a Form 1116 or a
Form 1118, and/or a Form 5471
(including Schedule J and
Schedule P), and separately report
passive category income and section
951A category income.
Line 1. Enter the CFC’s gross
income. The amount of gross income
entered on line 1 will generally be a
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positive amount. However, if a CFC’s
cost of goods sold exceeds its gross
receipts, a negative amount is
permitted on line 1.
Line 2. Enter the CFC’s exclusions as
described in Regulations section
1.951A-2(c).
Line 2a. Enter the amount of the
CFC’s income or loss described in
section 952(b), which is generally
income or loss from sources within the
United States that is effectively
connected to the conduct of a trade or
business by the CFC in the United
States and not reduced or exempt
from tax pursuant to an income tax
treaty with the United States.
Line 2b. Enter the amount, if any,
of the CFC’s gross income or loss
taken into account in determining the
CFC’s subpart F income (as defined in
section 952). Note that an amount
determined under section 956(a) is
not considered subpart F income. The
amount to be entered is computed
after application of the high-tax
exception in section 954(b)(4), but
before application of the E&P
limitation in section 952(c)(1)(A).
Line 2c. Enter the amount, if any,
of the CFC’s gross income excluded
from foreign base company income
(as defined in section 954) and
insurance income (as defined in
section 953) by reason of section
954(b)(4), the high-tax exception
(include amounts excluded from
tested income under Regulations
section 1.951A-2(c)(7)).
Line 2d. Enter the amount of any
dividend income received by the CFC
from a related person as defined in
section 954(d)(3). Do not include the
amounts of any dividend income
received from a related person that
are already included in the amounts
entered on line 2b or line 2c.
Line 2e. Enter the amount of the
CFC’s taxable income or loss from
sources outside the United States and
its territories from the following.
•
The extraction (by the corporation
or any other person) of minerals from
oil or gas wells located outside the
United States and its territories.
•
The sale or exchange of assets
used (by the corporation) in the trade
or business of extracting minerals
from oil or gas wells located outside
the United States and its territories.
Line 3.
Combine lines 2a through 2e.
The line 3 result can be positive or
negative.
Line 4. Subtract line 3 from line 1 and
enter the result on line 4. The line 4
result can be positive or negative. For
example:
Line 1
gross
income $1,000 $1,000 $(1,000) $(1,000)
Line 3 total
exclusions 800 (800) 800 (800)
Line 4
(line 1
minus
line 3) $200 $1,800 $(1,800) $(200)
Line 5. Enter the deductions
(including taxes) properly allocable to
the amount on line 4 (or to which such
deductions would be allocable if there
were such gross income). See section
951A(c)(2)(A)(ii) and Regulations
section 1.951A-2(c)(3). The amount
entered on line 5 will generally be a
positive amount. However, a negative
amount is permitted on line 5.
Line 6. Subtract line 5 from 4 and
enter the result on line 6. The line 6
result can be positive or negative. See
the line 4 instructions above for
examples. This amount must be
converted from functional currency to
U.S. dollars using the average
exchange rate for the year of the CFC.
See Regulations section 1.951A-1(d)
(1).
Report the exchange rate using the
“divide-by convention” specified under
Reporting exchange rates on Form
5471, earlier.
Line 7. If the CFC has a tested loss
on line 6, enter zero. If the CFC has
tested income on line 6, enter only
those foreign income taxes that are
properly attributable to the CFC’s
tested income group. This amount
must be converted from functional
currency to U.S. dollars using the
average exchange rate for the year of
the CFC. See section 986.
Line 8. If the CFC has a tested loss
on line 6, enter zero. If the CFC has
tested income on line 6, enter the
qualified business asset investment
(QBAI) (defined below). This amount
must be converted from functional
currency to U.S. dollars using the
average exchange rate for the year of
the CFC. See Regulations section
1.951A-1(d)(1).
Qualified business asset
investment (QBAI). QBAI is the
average of the CFC's aggregate
adjusted bases, as of the close of
each quarter of its tax year, in
specified tangible property used in its
trade or business in the production of
tested income, and for which a
deduction is allowable under section
167. Adjusted basis in any property
must be determined by using the
alternative depreciation system under
section 168(g) and allocating
depreciation deductions with respect
to such property ratably to each day
during the period in the tax year to
which such depreciation relates.
Specified tangible property and
dual-use property. Specified
tangible property means any tangible
property used in the production of
tested income. If such property was
used in the production of tested
income and income that is not tested
income (that is, dual-use property),
the property is treated as specified
tangible property in the same
proportion that the amount of tested
income determined before allocable
deductions (that is, line 4) produced
with respect to the property bears to
the total amount of gross income
produced with respect to the property.
Partnership property. A CFC
with tested income that is a partner of
a partnership that has depreciable
tangible property determines its share
of the partnership’s average adjusted
basis in the depreciable tangible
property of the partnership based on
the amount of the distributive share of
the gross income produced by the
property that is included in the CFC’s
gross tested income (defined below)
relative to the total amount of gross
income produced by the property. The
partnership’s average adjusted basis
in the depreciable tangible property of
the partnership is generally
determined based on the average of
the adjusted basis in the property as
of the close of each quarter of the
partnership’s tax year that ends with
or within the CFC’s tax year. See
Regulations section 1.951A-3(g).
Gross tested income. For these
purposes, a CFC’s gross tested
income is its gross income less total
exclusions (Schedule I-1, line 4).
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Lines 9a through 9d. In general,
see Regulations section 1.951A-4(b)
(1) to determine how to compute the
CFC’s tested interest expense.
Line 9a. Enter the amount of
interest expense included on line 5.
See Line 6, earlier, for foreign
currency translation.
Line 9b. Enter the CFC’s qualified
interest expense, as defined in
Regulations section 1.951A
-4(b)(1)
(iii).
Line 9c. Enter the CFC’s tested
loss QBAI amount, as defined in
Regulations section 1.951A-4(b)(1)
(iv).
Line 9d. Subtract the sum of
line 9b and line 9c from line 9a and
enter the result on line 9d.
Lines 10a through 10c. In general,
see Regulations section 1.951A
-4(b)
(2) to determine how to compute the
CFC’s tested interest income.
Line 10a. Enter the amount of
interest income included on line 4.
See
Line 6, earlier, for foreign
currency translation.
Line 10b. Enter the CFC’s
qualified interest income, as defined in
Regulations section 1.951A
-4(b)(2)
(iii).
Line 10c. Subtract line 10b from
line 10a and enter the result on
line 10c.
Schedule J
Use Schedule J to report a CFC’s
accumulated E&P in its functional
currency, computed under sections
964(a) and 986(b). Also use this
schedule to report the E&P of
specified foreign corporations that are
only treated as CFCs for limited
purposes under section 965(e)(2).
Note. Category 1b, 1c, 5b, and 5c
filers are not required to file
Schedule J for foreign-controlled
section 965 SFCs or
foreign-controlled CFCs.
Name of person filing Form 5471.
The name of the person filing Form
5471 is generally the name of the U.S.
person described in the applicable
category or categories of filers (see
Categories of Filers, earlier). However,
in the case of a consolidated return,
enter the name of the U.S. parent in
the field for “Name of person filing
Form 5471.”
Reference ID number of foreign
corporation. If applicable, use the
reference ID number shown on Form
5471, page 1, item 1b(2).
Lines a and b. Complete a separate
Schedule J for each applicable
separate category of income. Enter
the appropriate code on line a (at the
top of page 1 of Schedule J). To
determine the appropriate code, see
Categories of Income in the
Instructions for Form 1118. E&P with
respect to all categories of income
listed in the Instructions for Form
1118, except foreign branch category
income, may need to be reported. A
foreign corporation may have E&P in
an income group within the general
category, passive category, or section
901(j) category. See Regulations
section 1.960
-1(d)(2)(ii). A foreign
corporation may have PTEP in a
PTEP group within any of the separate
categories of income, except foreign
branch category income. See
Regulations section 1.960
-3(c)(1).
If code 901j is entered on line a,
enter on line b the country code for
the sanctioned country using the
two-letter code (from the list at
IRS.gov/CountryCodes).
Note. A separate Schedule J should
not be completed for the section 951A
category. Reclassified section 951A
PTEP and section 951A PTEP that is
in the section 951A category should
be reported on the general category
Schedule J.
Note. For purposes of this
Schedule J, include in each separate
category of income, foreign source
and U.S. source income.
Important. In addition to the
separate category codes referred to
above, if you have more than one of
the categories of income referred to
above, you must complete and file a
separate Schedule J using code
“TOTAL” that aggregates all amounts
listed for each line and column in Part
I of all other Schedules J.
Part I—Accumulated E&P of
Controlled Foreign Corporation
Check the box at the top of Part I if the
person filing Form 5471 does not have
all U.S. shareholders’ information
necessary to complete any one of the
PTEP amounts required to be
included in column (e). If the person
filing Form 5471 is unable to
determine whether amounts should
be reported as PTEP, those amounts
should be included in column (a),
Post-2017 E&P Not Previously Taxed
(post-2017 section 959(c)(3)
balance). For example, one U.S.
shareholder might not know the
amount of the other U.S.
shareholder’s section 951A inclusion
that is allocated to the CFC because
the first U.S. shareholder does not
have information with respect to the
second U.S. shareholder’s net CFC
tested income or pro rata share of
QBAI. See the
instructions for
Schedule P, later, for an example.
Enter the amounts in this schedule
in the functional currency of the
foreign corporation as reported on
Form 5471, page 1, item 1h. If the
foreign corporation is the owner of a
qualified business unit(s) (QBU) with a
different functional currency, translate
the E&P of the QBU(s) to the foreign
corporation’s functional currency.
Columns (a), (b), and (c)
Report the opening balance, current
year additions and subtractions, and
the closing balance in the foreign
corporation's E&P described in
section 959(c)(3). In general, this is
E&P of the foreign corporation that
has not been included in gross
income of a U.S. person under section
951(a)(1) and section 951A.
In column (a), report E&P
described in section 959(c)(3) and
earned after the repeal of section 902,
that is, post-2017 E&P not previously
taxed (post-2017 section 959(c)(3)
balance). The repeal of section 902 is
effective for tax years of foreign
corporations beginning after
December 31, 2017, and to tax years
of U.S. shareholders in which or with
which such tax years of foreign
corporations end.
In column (b), report post-1986
undistributed earnings, as defined
under section 902(c)(1), and as in
effect prior to the repeal of section
902.
Use column (c) to report the
aggregate amount of the foreign
corporation's pre-1987 section 964(a)
E&P accumulated since 1962 and not
previously distributed or deemed
distributed. These amounts are
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figured in U.S. dollars using the rules
of Regulations section 1.964-1(a)
through (d), and translated into the
foreign corporation's functional
currency according to Notice 88-70,
1988-2 C.B. 369.
Column (d)
Use column (d) to report hovering
deficits (see section 381(c)(2)(B) and
Regulations section 1.367(b)-7) and
suspended taxes (see section 909).
See
Specific Instructions Related to
Lines 1 Through 13, later, for
additional information pertaining to
reporting amounts in column (d).
Column (e)
Use column (e) to report the running
balance of the foreign corporation's
PTEP, section 964(a) E&P
accumulated since 1962 that have
resulted in deemed inclusions under
subpart F, or amounts treated as
PTEP under section 965(b)(4)(A).
Pre-1987 U.S. dollar PTEP should be
translated into the foreign
corporation's functional currency
using the rules of Notice 88-70 and
added to post-1986 amounts in the
appropriate PTEP group.
•
Columns (e)(i) and (e)(ii) are PTEP
originally attributable to inclusions
under section 965(a) and E&P treated
as PTEP under section 965(b)(4)(A),
respectively, and reclassified as
investments in U.S. property (section
959(c)(1) amounts).
•
Column (e)(iii) is PTEP described in
the following three subgroups (which
are aggregated into a single PTEP
group) (section 959(c)(1) amounts).
1. PTEP attributable to
investments in U.S. property and not
by reason of reclassification.
2. PTEP attributable to inclusions
under section 951(a)(1)(A) (other than
inclusions under section 951(a)(1)(A)
described in the instructions for
columns (e)(vi) through (ix)) and
reclassified as investments in U.S.
property (for example, PTEP
attributable to subpart F income
inclusions and reclassified as
investments in U.S. property).
3. PTEP attributable to inclusions
under former section 951(a)(1)(C) and
subpart F income inclusions
reclassified as investments in excess
passive assets.
•
Column (e)(iv) is PTEP originally
attributable to inclusions under
section 951A and reclassified as
investments in U.S. property (section
959(c)(1) amounts).
•
Column (e)(v) is PTEP described in
the following three subgroups (which
are aggregated into a single PTEP
group) (section 959(c)(1) amounts).
1. PTEP attributable to hybrid
dividends under section 245A(e)(2)
and reclassified as investments in
U.S. property.
2. PTEP attributable to section
1248 amounts under section 959(e)
and reclassified as investments in
U.S. property.
3. PTEP attributable to section
1248 amounts from the gain on the
sale of foreign corporation stock by a
CFC and reclassified as investments
in U.S. property.
•
Column (e)(vi) is PTEP attributable
to section 965(a) inclusions (section
959(c)(2) amounts). Do not include in
column (e)(vi) E&P reported in column
(e)(vii).
•
Column (e)(vii) is E&P treated as
PTEP under section 965(b)(4)(A)
(section 959(c)(2) amounts).
•
Column (e)(viii) is PTEP attributable
to section 951A inclusions (section
959(c)(2) amounts).
•
Column (e)(ix) is PTEP described in
the following three subgroups (which
are aggregated into a single PTEP
group) (section 959(c)(2) amounts).
1. PTEP attributable to hybrid
dividends under section 245A(e)(2).
2. PTEP attributable to section
1248 amounts under section 959(e).
3. PTEP attributable to section
1248 amounts from the gain on the
sale of foreign corporation stock by a
CFC.
•
Column (x) is PTEP attributable to
section 951(a)(1)(A) inclusions
(section 959(c)(2) amounts) not
otherwise described in the
instructions for columns (e)(vi)
through (ix).
Schedule J reports PTEP by
subgroups because those groups may
be subject to different rules under
sections 960, 965(g), 245A(e)(3), and
986(c). The different rules are
applicable for individuals, as well as
corporations, estates, and trusts. For
example, an individual U.S.
shareholder who receives a
distribution of PTEP originally
attributable to inclusions under
section 965(a) may only claim a credit
for a portion of the foreign taxes
attributable to a distribution of such
PTEP. See section 965(g) and
Regulations section 1.965-5 for more
information. This is the case for both
direct foreign tax credits (that is, those
foreign taxes paid or accrued directly
by the shareholder upon receipt of the
PTEP distribution and allowed as a
credit under section 901 or 903) and
indirect foreign tax credits (that is,
those taxes deemed paid by the
shareholder with respect to taxes
originally paid or accrued by the CFC
under section 960(b)). With respect to
direct credits, this reduction applies
regardless of whether such individual
made an election under section 962.
Therefore, the reporting on
Schedule J is necessary regardless of
whether the U.S. shareholder made a
section 962 election.
Column (f)
Use column (f) to report the opening
and closing balances of the foreign
corporation's accumulated E&P. This
amount is the sum of post-2017 E&P
not previously taxed, post-1986
undistributed earnings, pre-1987 E&P
not previously taxed, and PTEP. Do
not include column (d) amounts in the
total reported in column (f).
Specific Instructions Related to
Lines 1 Through 13
Line 1a. Enter the balances for each
column at the beginning of the tax
year. These balances should equal
the amounts reported as the ending
balances in the prior year Schedule J.
Line 1b. If there is a difference
between last year’s ending balance on
Schedule J and the amount that
should be last year’s ending balance,
taking into account modifications on
Schedule J, include the difference on
line 1b and attach an explanation for
the difference. If there are multiple
reasons for differences, include the
explanation and amount of each such
difference on the attachment. Do not
include adjustments required to be
reported on line 6 or 12.
Lines 1a through 1c. These lines of
column (d) account for the balance of
prior year hovering deficits and
suspended taxes that have not yet
been deducted. Such amounts are
reported as negative numbers.
Line 2a. This line of column (d) is the
unsuspended taxes under section 909
as a result of related income taken
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into account by the foreign
corporation, certain U.S. corporate
owners of the foreign corporation, or a
member of such U.S. corporate
owner’s consolidated group. Report
the unsuspended taxes on line 2a of
column (d) as a positive number.
Report the unsuspended taxes as
negative numbers on line 2a of
column (a), (b), (c), or (e), as
applicable.
Line 2b. This line of column (d)
accounts for foreign income taxes that
are suspended in the current tax year.
Report such amounts as negative
numbers.
Line 3. Enter the current year E&P (or
deficit in E&P) amount from the
applicable line 5c of Schedule H
(Form 5471). For example, if you are
completing Schedule J for the passive
category (that is, you have entered
“PAS” on line a at the top of page 1 of
Schedule J), enter the current year
E&P (or deficit in E&P) amount from
Schedule H (Form 5471), line 5c(ii), in
the applicable column. Line 3 should
never have an amount entered in
column (e).
Line 4. Report as a positive number
E&P attributable to distributions of
PTEP from lower-tier foreign
corporations. Generally, the E&P of a
CFC attributable to amounts that are,
or have been, included in the gross
income of a U.S. shareholder under
section 951(a) are not, when
distributed through a chain of
ownership described in section
958(a), also included in the gross
income of another CFC in such chain
for purposes of the application of
section 951(a) to such other CFC with
respect to such U.S. shareholder. See
section 959(b).
Line 5a. Enter earnings carried over
to a foreign surviving corporation after
an acquisition by a foreign corporation
of the assets of another foreign
corporation in a transaction described
in section 381. See Regulations
section 1.367(b)-7. The amounts
entered on line 5a may be negative or
positive. Negative amounts are
hovering deficits reported in column
(d) of line 5a.
Line 5b. If the foreign surviving
corporation had a deficit in E&P prior
to a transaction described in section
381, such deficit is recharacterized as
a hovering deficit after such
nonrecognition transaction. See
section 381(c)(2)(B) and Regulations
section 1.367(b)-7(d)(2)(i) (post-1986
undistributed earnings) and
1.367(b)-7(e)(1) (pre-1987 E&P not
previously taxed). An amount equal to
the deficit reported in column (a), (b),
or (c) of line 5a is included as a
positive amount on line 5b of column
(a), (b), or (c), respectively. An amount
equal to the total hovering deficits
reported on line 5b of columns (a), (b),
and (c) is included as a negative
number in column (d) of line 5b.
Line 6. Attach a statement detailing
the nature and amount of any
adjustments not accounted for in the
E&P determined before reduction for
distributions and inclusions (that is,
adjustments other than those listed on
lines 2a through 5b). Do not include
amounts reported on line 1b. An
example of an adjustment entered on
line 6 is the foreign taxes imposed on
receipt of a distribution of PTEP from
a lower
-tier foreign corporation.
Example. Domestic Corporation, a
U.S. shareholder, wholly owns the
only class of stock of CFC1, a foreign
corporation. CFC1, in turn, wholly
owns the only class of stock of CFC2,
a foreign corporation. CFC2, in turn,
wholly owns the only class of stock of
CFC3, a foreign corporation. The
functional currency of Domestic
Corporation, CFC1, CFC2, and CFC3
is the U.S. dollar. During Year 1,
Domestic Corporation reports an
inclusion under section 951(a)(1) of
$100 as a result of subpart F income
of CFC3. During Year 2, CFC3
distributes $40 to CFC2. CFC2 pays
withholding tax of $4 on the
distribution from CFC3. Such tax is
related to previously taxed subpart F
income. Domestic Corporation reports
on CFC2’s Form 5471, Schedule J,
line 4, column (e)(x), as a positive
number, the $40 PTEP distribution.
Domestic Corporation reports on
line 6, column (e)(x), as a negative
number, the $4 of tax on the PTEP
distribution.
Line 7. Enter on line 7 E&P as of the
close of the tax year before actual
distributions or inclusions under
section 951(a)(1) or section 951A
during the year.
Line 8. Enter amounts included in
gross income of the U.S.
shareholder(s) under section 951(a)
(1)(A) or section 951A with respect to
the CFC. Report the inclusion as a
negative amount in columns (a)
through (c), as applicable. Report the
inclusion as a positive amount in
columns (e)(vi) through (e)(x), as
applicable. Amounts reported as
positive numbers on line 8 of column
(e)(viii) should only be reported with
respect to negative amounts on line 8
of column (a). The negative amounts
could be reported on a different
Schedule J than the positive amounts
if such amounts are reclassified from
one separate category to another
separate category.
Note. Section 951(a)(1)(A) inclusions
are taken into account for the tax year
before actual distributions and section
951(a)(1)(B) inclusions. See section
959.
Note. The amount included in gross
income of U.S. shareholders of the
CFC under section 951A might not be
known if there is more than one U.S.
shareholder. In that case, see the
example in the instructions for
Schedule P for reporting information.
Note. The amount reported in column
(e)(viii) on line 8 will not necessarily
equal the tested income reported on
Schedule I-1. For an example of when
this might occur, see Regulations
section 1.951A-5(b)(2)(ii).
Line 9. Report actual distributions as
negative numbers.
Note. Actual distributions are taken
into account for the tax year before
section 951(a)(1)(B) inclusions. See
section 959(f)(2). An actual
distribution is first out of PTEP, if any,
and then out of the section 959(c)(3)
balance. See section 959(c).
Note. The total of all amounts
entered in Schedule R (Form 5471),
column (d), must equal the amount on
line 9, column (f), of the Schedule J
(Form 5471) that is filed, or if more
than one Schedule J (Form 5471) is
filed, the Schedule J (Form 5471) with
code “TOTAL” entered on line a of that
Schedule J.
Line 10. Use line 10 to report
reclassifications of section 959(c)(2)
PTEP in columns (e)(vi) through (e)(x)
to section 959(c)(1) PTEP in columns
(e)(i) through (e)(v). A potential
section 951(a)(1)(B) inclusion results
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in a reclassification of section 959(c)
(2) PTEP, if any, to section 959(c)(1)
PTEP before reclassification out of the
section 959(c)(3) E&P balance. See
section 959(a)(2) and (f)(1). The
amounts reclassified are reported as
negative numbers in columns (e)(vi)
through (e)(x) and positive numbers in
columns (e)(i) through (e)(v), as
applicable.
Line 11. Use this line to report E&P
not previously taxed, which is treated
as earnings invested in U.S. property
and, therefore, reclassified to section
959(c)(1) PTEP (column (e)(iii)). The
amounts reclassified are reported as
negative numbers in columns (a)
through (c) and positive numbers in
column (e)(iii), as applicable.
Line 12. Attach a statement detailing
the nature and amount of any
adjustments in E&P not accounted for
on lines 8 through 11. Do not include
adjustments required to be reported
on line 1b or line 6.
Line 13. The hovering deficit offset
included in column (d) is reported as a
positive number. The same amount
entered in column (d) is reported as a
negative number on line 13 of column
(a) or (b), as appropriate. See section
381(c)(2)(B) and Regulations section
1.367(b)-7(d)(2)(ii).
Schedule M
Every U.S. person described in
Category 4 must file Schedule M to
report the transactions that occurred
during the foreign corporation's
annual accounting period ending with
or within the U.S. person's tax year.
If a U.S. corporation that owns
stock in a foreign corporation is a
member of a consolidated group, list
the common parent as the U.S.
person filing Schedule M.
Important. In translating the amounts
from functional currency to U.S.
dollars, use the average exchange
rate for the foreign corporation's tax
year. See section 989(b). Report the
exchange rate in the entry space
provided at the top of Schedule M
using the “divide-by convention”
specified under
Reporting exchange
rates on Form 5471, earlier.
Name of person filing Form 5471.
The name of the person filing Form
5471 is generally the name of the U.S.
person described in the applicable
category or categories of filers (see
Categories of Filers, earlier). However,
in the case of a consolidated return,
enter the name of the U.S. parent in
the field for “Name of person filing
Form 5471.”
Reference ID number of foreign
corporation. Use the reference ID
number shown on Form 5471, page 1,
item 1b(2).
Lines 4 and 19. Report on these
lines platform contribution transaction
payments received and paid by the
foreign corporation (without giving
effect to any netting of payments).
See Regulations section 1.482-7(b)(1)
(ii).
Lines 5 and 20. Report on these
lines cost sharing transaction
payments received and paid by the
foreign corporation (without giving
effect to any netting of payments).
See Regulations section 1.482-7(b)(1)
(i). The corporation is required to
complete line 5 only if the corporation
itself incurred intangible development
costs. If the corporation does not itself
incur intangible development costs,
then it should only report cost sharing
transaction payments made on
line 20.
Lines 9 and 24. Report on line 9 the
sum of tiered hybrid dividends
received by the foreign corporation
during its tax year. Report on line 24
the sum of hybrid dividends or tiered
hybrid dividends paid by the foreign
corporation during its tax year.
Lines 10 and 25. Report on these
lines dividends received and paid by
the foreign corporation not previously
taxed under subpart F in the current
year or in any prior year.
Lines 13 and 28. Report on these
lines loan guarantee fees received
(line 13) and loan guarantee fees paid
(line 28). See section 482.
Lines 14 and 29. Report on these
lines “other amounts received”
(line 14) and “other amounts paid”
(line 29).
If an amount is entered on line 14,
you must attach a statement that
includes the following information.
Column (a) of the attached statement
should provide a description of the
type of other amounts received during
the annual accounting period.
Columns (b) through (f) should
provide dollar amounts of the
specified other amounts received
during the annual accounting period
by the foreign corporation from the
persons listed in the headings for
columns (b) through (f). These
headings must comport to those used
on the Schedule M (Form 5471) to
which this statement is attached. The
attached statement must include a
“totals” line that ties into the amounts
reported in each column of line 14.
If an amount is entered on line 29,
you must attach a statement that
includes the following information.
Column (a) of the attached statement
should provide a description of the
type of other amount paid during the
annual accounting period. Columns
(b) through (f) should provide dollar
amounts of the specified other
amounts paid during the annual
accounting period by the foreign
corporation to the persons listed in the
headings for columns (b) through (f).
These headings must comport to
those used on the Schedule M (Form
5471) to which this statement is
attached. The attached statement
must include a “totals” line that ties
into the amounts reported in each
column of line 29.
Lines 31 and 33. Report on these
lines the largest aggregate
outstanding accounts receivable and
payable balances during the year with
the related parties described in
columns (b) through (f). Report only
accounts receivable or payable arising
in connection with the provision of
services or the sale or processing of
property. Only net accounts receivable
and payable to the extent that the
CFC’s books net the accounts
payable against the receivable as
payment of the accounts receivable.
Lines 32 and 34. Report on these
lines the largest outstanding balances
during the year of gross amounts
borrowed from, and gross amounts
loaned to, the related parties
described in columns (b) through (f).
Do not enter aggregate cash flows,
year-end loan balances, average
balances, or net balances. Do not
include an account receivable or
payable balance arising in connection
with the provision of services or the
sale or processing of property if the
amount of such balance does not, at
any time during the tax year, exceed
what is ordinary and necessary to
carry on the trade or business. Any
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outstanding balance from these
transactions should be reported on
the Balance Sheet (Form 5471,
Schedule F, page 4) and possibly also
on Schedule M, lines 31 and 33.
Accrued payments and receipts. A
corporation that uses an accrual
method of accounting must use
accrued payments and accrued
receipts for purposes of computing
the total amount to enter on each line
of Schedule M.
Schedule O
Schedule O is used to report the
organization or reorganization of a
foreign corporation and the acquisition
or disposition of its stock.
Every U.S. citizen or resident
described in Category 2 must
complete Part I. Every U.S. person
described in Category 3 must
complete Part II.
See Regulations section
1.6046-1(i) for rules on determining
when U.S. persons constructively own
stock of a foreign corporation and are
therefore subject to the section 6046
filing requirements.
Name of person filing Form 5471.
The name of the person filing Form
5471 is generally the name of the U.S.
person described in the applicable
category or categories of filers (see
Categories of Filers, earlier). However,
in the case of a consolidated return,
enter the name of the U.S. parent in
the field for “Name of person filing
Form 5471.”
Reference ID number of foreign
corporation. Use the reference ID
number shown on Form 5471, page 1,
item 1b(2).
Part I
Column (d). Enter the date the
shareholder first acquired 10% or
more (in value or voting power) of the
outstanding stock of the foreign
corporation.
Column (e). Enter the date the
shareholder acquired (whether in one
or more transactions) an additional
10% or more (in value or voting
power) of the outstanding stock of the
foreign corporation.
Part II
Section A—General Shareholder
Information
If the shareholder's latest tax return
was filed electronically, enter “e-filed”
in column (b)(3) instead of a service
center.
Section C—Acquisition of Stock
Section C is completed by
shareholders who are completing
Schedule O because they have
acquired sufficient stock in a foreign
corporation. If the shareholder
acquired the stock in more than one
transaction, use a separate line to
report each transaction.
Column (d). Enter the method of
acquisition (for example, purchase,
gift, bequest, trade).
Column (e)(2). Enter the number of
shares acquired indirectly (within the
meaning of section 958(a)(2)) by the
shareholder listed in column (a).
Column (e)(3). Enter the number of
shares constructively owned (within
the meaning of section 958(b)) by the
shareholder listed in column (a).
Section D—Disposition of Stock
Section D must be completed by
shareholders who dispose of their
interest (in whole or in part) in a
foreign corporation.
Column (d). Enter the method of
disposition (for example, sale,
bequest, gift, trade).
Example. In 1999, Mr. Jackson, a
U.S. citizen, purchased 10,000 shares
of common stock of foreign
corporation X. The purchase
represented 10% ownership of the
foreign corporation.
On July 1, 2023, Mr. Jackson made
a gift of 5,000 shares of foreign
corporation X to his son, John.
Because Mr. Jackson has reduced his
holding in the foreign corporation, he
is required to complete Form 5471
and Schedule O. To show the required
information about the disposition, Mr.
Jackson completes Section D as
follows.
•
Enters his name in column (a).
•
Enters “common” in column (b).
•
Enters “July 1, 2023” in column (c).
•
Enters “gift” in column (d).
•
Enters “5,000” in column (e)(1).
•
Enters “-0-” in column (f) because
the disposition was by gift.
•
Enters the name and address of his
son, John, in column (g).
Section F—Additional Information
Item (b). List the date of any
reorganization of the foreign
corporation that occurred during the
last 4 years while any U.S. person
held 10% or more in value or vote
(directly or indirectly) of the
corporation's stock. If there is more
than one such date, use the most
recent date. However, do not enter a
date for which information was
reported in Section E. Instead, enter
the date (if any) of any reorganization
prior to that date (if it is within the last
4 years).
Example for item (c). Mr. Lyons,
a U.S. person, acquires a 10%
ownership in foreign corporation F. F
is the 100% owner of two foreign
corporations, FI and FJ. F is also a
50% owner of foreign corporation FK.
In addition, F is 90% owned by foreign
corporation W. Mr. Lyons does not
own any of the stock of corporation W.
Mr. Lyons completes and files Form
5471 and Schedule O for the
corporations in which he is a
10%-or-more shareholder. Mr. Lyons
is also required to submit a chart if the
foreign corporation is a member of a
chain of corporations, and to indicate
if he is a 10%-or-more shareholder in
any of those corporations.
Mr. Lyons would prepare a list
showing the corporations as follows.
•
Corporation W.
•
Corporation F.
•
Corporation FI.
•
Corporation FJ.
•
Corporation FK.
Then Mr. Lyons is required to
indicate that he is a 10%-or-more
shareholder in corporations F, FI, and
FJ.
Schedule P
Use Schedule P to report the PTEP in
the U.S. shareholder’s annual PTEP
accounts with respect to a CFC in the
CFC’s functional currency (Part I) and
the U.S. shareholder’s U.S. dollar
basis in that PTEP (Part II). For
purposes of the preceding sentence,
a CFC includes an SFC that is only
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treated as a CFC for limited purposes
under section 965(e)(2).
Note. A separate Schedule P must
be completed by each Category 1a,
1b, 4, 5a, or 5b filer.
If a U.S. shareholder wholly owns
the CFC, Schedule P should include
the same information reported on
Schedule J, Part I, column (e). If there
is more than one U.S. shareholder, the
amounts reported on Schedule P with
respect to each U.S. shareholder
might be different from the amounts
reported on Schedule J.
Example. Corporation A, a
domestic corporation, owns 50% of
the only class of stock of CFC1, and
Corporation B, a domestic
corporation, owns the remaining 50%
of the stock of CFC1. Corporation A
wholly owns the only class of stock of
CFC2. The functional currency of all
corporations is the U.S. dollar. CFC1
has tested income of $100x and
CFC2 has tested loss of $30x. See
section 951A(c)(2). Neither
Corporation A nor Corporation B has
any net deemed tangible income
return that would reduce the GILTI
inclusion of Corporation A or B.
Corporation A has a section 951A
inclusion of $20 because its pro rata
share of CFC1’s tested income ($50x)
is offset by its pro rata share of
CFC2’s tested loss ($30x).
Corporation B has a section 951A
inclusion of $50x. On Schedule P of
the Form 5471 with respect to CFC1
filed by Corporation B, Corporation B
will report on line 7, column (h), $50x
of PTEP as a result of its section 951A
inclusion with respect to CFC1.
Corporation A will report $20x of
PTEP as a result of its section 951A
inclusion on its Form 5471,
Schedule P, line 7, column (h), with
respect to CFC1.
The Form 5471, Schedule J, for
CFC1 should include PTEP of $70x
with respect to the aggregate section
951A inclusions of Corporation A and
Corporation B. However, if
Corporation A does not know
Corporation B’s section 951A
inclusion at the time Corporation A
files its Form 5471, Corporation A will
only be able to complete Schedule J,
Part I, with respect to its PTEP of $20x
on line 8, column (e)(viii). Similarly,
Corporation B will only be able to
complete Schedule J, Part I, with
respect to its PTEP of $50x on line 8,
column (e)(viii). In the following year,
Corporation A and Corporation B
should each report the other
corporation’s PTEP on Schedule J,
Part I, line 1b, column (e)(viii), and the
corresponding reduction to CFC1’s
E&P described in section 959(c)(3) on
Schedule J, Part I, line 1b, column (a).
Name of person filing Form 5471.
The name of the person filing Form
5471 is generally the name of the U.S.
person described in the applicable
category or categories of filers (see
Categories of Filers, earlier). However,
in the case of a consolidated return,
enter the name of the U.S. parent in
the field for “Name of person filing
Form 5471.”
Reference ID number of foreign
corporation. If applicable, use the
reference ID number shown on Form
5471, page 1, item 1b(2).
Lines a and b. Complete a separate
Schedule P for each applicable
separate category of income. Enter
the appropriate code on line a (at the
top of page 1 of Schedule P). To
determine the appropriate code, see
Categories of Income in the
Instructions for Form 1118.
A foreign corporation may have
PTEP in a PTEP group within any of
the separate categories of income,
with the exception of foreign branch
category income. See Regulations
section 1.960
-3(c)(1).
If code 901j is entered on line a,
enter on line b the country code for
the sanctioned country using the
two-letter code (from the list at
IRS.gov/CountryCodes).
Note. A separate Schedule P should
not be completed for the section 951A
category. Reclassified section 951A
PTEP and section 951A PTEP that is
in the section 951A category should
be reported on the Schedule P
completed for the general category.
Note. For purposes of this
Schedule P, include in each separate
category of income, foreign source
and U.S. source income.
Important. In addition to the
separate category codes referred to
above, if you have more than one of
the categories of income referred to
above, you must complete and file a
separate Schedule P using code
“TOTAL” that aggregates all amounts
listed for each line and column of all
other Schedules P.
Part I
Enter amounts in the functional
currency of the foreign corporation as
reported on Form 5471, page 1,
item
1h.
Pre-1987 U.S. dollar PTEP should
be translated into the foreign
corporation's functional currency
using the rules of Notice 88-70 and
added to post-1986 amounts in the
appropriate PTEP category.
Part II
Dollar basis. Enter amounts in U.S.
dollars. The U.S. shareholder’s U.S.
dollar basis in PTEP is generally equal
to the U.S. dollar amount of E&P that
the U.S. shareholder previously
included in gross income. See section
989(b)(1) and (3); and Regulations
sections 1.951A-1(d)(1) and
1.965-1(b)(1) and (2).
The U.S. shareholder’s U.S. dollar
basis is used by the U.S. shareholder
to determine the amount of foreign
currency gain or loss on the PTEP that
the U.S. shareholder is required to
recognize under section 986(c).
Columns (a) through (k). Use
columns (a) through (k) to report the
opening balance of, current year
additions and subtractions to, and the
closing balance of, the PTEP in the
U.S. shareholder’s annual PTEP
accounts with respect to a CFC.
Columns (a) through (j) of
Schedule P correspond to
Schedule J, columns (e)(i) through (e)
(x). See
Schedule J, earlier, for
specific line instructions.
Line 1b. If there is a difference
between last year’s ending balance on
Schedule P and the amount that
should be last year’s ending balance,
taking into account modifications on
Schedule P, include the difference on
line 1b and attach an explanation for
the difference. If there are multiple
differences, include the explanation
and amount of each such difference
on the attachment.
Schedule Q
Use Schedule Q to report the CFC’s
income, deductions, taxes, and assets
by CFC income groups for purposes
of section 960(a) and (d).
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In general, a taxpayer that is
subject to tax as a domestic
corporation that is a U.S. shareholder
(“corporate U.S. shareholder”) of a
CFC is deemed to pay all or a portion
of the foreign income taxes paid or
accrued by the CFC that are properly
attributable to subpart F income or
tested income included in gross
income by the corporate U.S.
shareholder. See section 960(a) and
(d). A corporate U.S. shareholder may
claim a credit for such foreign taxes,
subject to certain limitations.
Note. If an individual, estate, or trust
that is a U.S. shareholder of a CFC
makes an election under section 962
(“962 electing shareholder”), any
inclusions under section 951 or 951A
of the U.S. shareholder will be treated
as received by a corporate U.S.
shareholder for purposes of section
960. See section 962(b) and
Regulations section 1.962-2(b). As a
result, these U.S. shareholders may
also claim a foreign tax credit for
foreign income taxes deemed paid
with respect to such inclusions. See
sections 962(a)(1) and 951A(f)(1)(A).
Note. See also section 1293(f) for
inclusions with respect to a PFIC.
To calculate the foreign taxes
deemed paid by the corporate U.S.
shareholder (including a 962 electing
shareholder), determine for each of its
CFCs the income, deductions, and
taxes that are assigned to each
separate category of income and
each income group within each
separate category. See Regulations
section 1.960-1(c)(1). The income
groups include the subpart F income
groups, the tested income group, and
the residual income group.
Computer-Generated
Schedule Q
Expand the Schedule Q if you are
reporting with respect to more than
two units. Specifically, if you are
reporting with respect to more than
two units, add to pages 1 to 4, as
appropriate, new lines (3), (4), (5),
etc., in all necessary locations.
Specific Instructions for
Schedule Q
Name of person filing Form 5471.
The name of the person filing Form
5471 is generally the name of the U.S.
person described in the applicable
category or categories of filers (see
Categories of Filers, earlier). However,
in the case of a consolidated return,
enter the name of the U.S. parent in
the field for “Name of person filing
Form 5471.”
Reference ID number of foreign
corporation. If applicable, use the
reference ID number shown on Form
5471, page 1, item 1b(2).
Line A. Complete a separate
Schedule Q for each applicable
separate category of income. Enter
the appropriate code from the table
below for the separate category of
income with respect to which the
Schedule Q is being completed.
Codes for Categories of Income
Code Category of Income
PAS Passive category income
901j Section 901(j) income
GEN General category income
If code 901j is entered on line A,
enter on line 1m, column (i), the
country code for the sanctioned
country using the two-letter code
(from the list at
IRS.gov/
CountryCodes).
Important. In addition to the
separate category codes referred to
above, if you have more than one of
the categories of income referred to
above, you must complete and file a
separate Schedule Q using code
“TOTAL” that aggregates all amounts
listed for each line and column in all
other Schedules Q.
Line B. If category code “PAS” is
entered on line A, a separate
Schedule Q must be completed for
each applicable grouping under
Regulations section 1.904-4(c)(3).
See Regulations sections 1.954-1(c)
(1)(iii)(B) and 1.904-4(c)(3) through
(5). Enter on line B the appropriate
code from the table below for each of
the following groups under
Regulations section 1.904-4(c)(3).
Codes for Passive Groups
Code Passive Group
i All passive income received during
the tax year that is subject to a
withholding tax of 15% or greater
must be treated as one item of
income. See Regulations section
1.904-4(c)(3)(i).
ii All passive income received during
the tax year that is subject to a
withholding tax of less than 15% (but
greater than zero) must be treated as
one item of income. See Regulations
section 1.904-4(c)(3)(ii).
iii All passive income received during
the tax year that is subject to no
withholding tax or other foreign tax
must be treated as one item of
income. See Regulations section
1.904-4(c)(3)(iii).
iv All passive income received during
the tax year that is subject to no
withholding tax but is subject to
foreign tax other than a withholding
tax must be treated as one item of
income. See Regulations section
1.904-4(c)(3)(iv).
Note. The grouping rules of
Regulations section 1.904-4(c)(3)(i)
through (iv) apply separately to
income attributable to each tested unit
of a CFC. See Regulations section
1.904-4(c)(4). This is one reason that,
in the case of a CFC,
tested-unit-by-tested-unit reporting is
required with respect to the income
groups on lines 1a through 1j and
lines 3 and 4. A foreign corporation
that is not a CFC but that is a
noncontrolled 10%-owned foreign
corporation must report this
information on a
foreign-QBU-by-foreign-QBU basis.
This would be the case, for example, if
you are completing Schedule Q for
purposes of attaching it to Schedules
K-2 and K-3 for purposes of section
1293(f).
To figure the amounts to enter on
lines 1a through 1j, on lines (1), (2),
etc., under each line 1a through 1j,
enter the name of each unit of the
foreign corporation (the relevant unit
being each tested unit in the case of a
CFC and each QBU in the case of a
10%-owned foreign corporation),
including the foreign corporation itself,
and the information required in each
column (i) through (xvi) with respect to
the amount in each subpart F income
group within each category for each
unit.
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On lines (1), (2), etc., under line 4,
enter the name of each unit and enter
the information required for columns
(i) through (xvi) for each unit, but do
not enter amounts excluded from
subpart F income under the subpart F
high-tax exception (those amounts are
reported on lines (1), (2), etc., under
lines 1a through 1j) or tested income
under the GILTI high-tax exclusion
(those amounts are reported on lines
(1), (2), etc., under line 3).
Line C. If code 901j is entered on line
A, enter the country code for the
sanctioned country using the
two-letter code from the list at
IRS.gov/CountryCodes.
Line D. Taxpayers are generally
required to complete a separate
Schedule Q for foreign source income
in each separate category and U.S.
source income in each separate
category. On a given Schedule Q,
taxpayers are generally required to
check the box for either foreign source
income or U.S. source income, as
applicable. However, if a taxpayer has
entered code “TOTAL” on line A and
the total reported on that Schedule Q
includes both foreign source income
and U.S. source income, the taxpayer
may check both boxes on line D.
Line E. A separate Schedule Q is
required for foreign oil and gas
extraction income (FOGEI) and
foreign oil related income (FORI). If
the Schedule Q is being prepared to
report the FOGEI or FORI of a CFC,
check the box for line E. Indicate the
amount of FOGEI and FORI in each
income group.
Line 1. Subpart F Income
Groups
The separate subpart F income
groups within each applicable section
904 category of a CFC are on line 1
(“subpart F income groups”). See
Regulations section 1.960-1(d)(2)(ii)
(B). Each single item of foreign base
company income (as defined in
Regulations section 1.954-1(c)(1)(iii))
is a separate subpart F income group.
With respect to a CFC, Regulations
section 1.954-1(c)(1)(iii)(A)(2)
identifies as a single item of income all
foreign base company income (other
than foreign personal holding
company income) that falls within both
a single separate category (typically,
general category income) and a single
category of foreign base company
income described in each of
Regulations section 1.954-1(c)(1)(iii)
(A)(2)(i) through (v). For example, with
respect to line 1g, there is a single
subpart F income group within the
general category that consists of all of
a CFC’s foreign base company sales
income.
Use lines 1a through 1f to enter the
passive category foreign personal
holding company income of the CFC
under the appropriate income group
(dividends, interest, rents, royalties,
and annuities; net gain from certain
property transactions; net gain from
commodities transactions; net foreign
currency gain; income equivalent to
interest; and other passive category
foreign personal holding company
income of the CFC), each of which is
also treated as a separate subpart F
income group under Regulations
section 1.960-1. See Regulations
section 1.954-1(c)(1)(iii)(B).
Note. Enter the following passive
category foreign personal holding
company income of the CFC on line 1f
(other foreign personal holding
company income).
•
Income from notional principal
contracts.
•
Payments in lieu of dividends.
•
Personal service contracts.
See section 954(c)(1)(F) through (H).
Attach a statement that includes all
of the information requested by
Schedule Q, line 1f, delineating the
amount on line 1f for each of the three
groups reporting on line 1f. For
example, if both payments in lieu of
dividends and income from notional
principal contracts are included on
line 1f, on the statement, identify the
amount related to each of those
income groups for each column of
line 1f.
Use lines 1g through 1j to enter the
foreign base company sales income,
foreign base company services
income, full inclusion income, and
insurance income described in
section 952(a)(1) of the CFC.
To figure the amounts to enter on
lines 1a through 1j, on lines (1), (2),
etc., under each line 1a through 1j,
enter the name of each QBU of the
CFC, including the CFC itself, and the
information required in each column
(i) through (xvi) with respect to the
amount in each subpart F income
group within each category for each
QBU. On lines 1a through 1j, enter the
total for each column by adding the
amounts on lines (1), (2), etc.,
excluding from such total any amounts
reported with respect to income
excluded from subpart F income
under the high-tax exception in
section 954(b)(4) (“subpart F high-tax
exception”). These amounts are
included in the total amount of
residual income, which is reported on
line 4. As a result, the amounts
included on lines 1a through 1j for
each column may not equal the sum
of the amounts reported on lines (1),
(2), etc., for each column because any
item excluded from subpart F income
by reason of the high-tax election is
included in the summation on line 4
instead of the summations on lines 1a
through 1j. See the instructions for
column (xiv) and line 4.
Example. For line 1a(1), gross
income of $50 is reported in column
(ii), foreign tax of $20 is reported in
each of columns (x) and (xii), and the
checkbox in column (xiv) is checked.
For line 1a(2), gross income of $100 is
reported in column (ii), $5 of foreign
tax is reported in each of columns (x)
and (xii), and the checkbox in column
(xiv) is not checked. For line 1a(3),
gross income of $75 is reported in
column (ii), $3 of foreign tax is
reported in each of columns (x) and
(xii), and the checkbox in column (xiv)
is not checked. As a result, the
amount reported in column (ii) on
line 1a is the sum of the amounts
reported in column (ii) on lines 1a(2)
and 1a(3), which is equal to $175
($100 + $75). The amounts reported
in columns (x) and (xii) on line 1a are
the sum of the amounts reported in
each column on lines 1a(2) and 1a(3),
which is equal to $8 ($5 + $3). The
items reported on line 1a(1), gross
income of $50 and $20 of foreign tax,
are not included in the totals reported
on line 1a. These amounts are
included in the totals for each
respective column on line 4. As a
result, the amount reported on line 4,
column (ii), is increased by $50 and
the amount reported in column (x) on
line 4 is increased by $20. No amount
is reported on line 4, column (xii),
because foreign income taxes
attributable to high-tax exception or
high-tax exclusion income are not
creditable.
On lines 1k through 1m, enter
international boycott income
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described in section 952(a)(3); illegal
bribes, kickbacks, and other
payments described in section 952(a)
(4); and income included in a section
901(j) separate category described in
section 952(a)(5). See Regulations
section 1.960-1(d)(2)(ii)(B)(2).
Line 2. Recaptured Subpart F
Income
Enter income that is recaptured as
subpart F income in the current year.
See section 952(c)(2).
Line 3. Tested Income Group
Use line 3 to report tested income in
the tested income group of the CFC (a
“tested income group”). See
Regulations section 1.960-1(d)(2)(ii)
(C). On lines (1), (2), etc., under
line 3, enter the name of each tested
unit of the CFC (including the CFC
tested unit itself) and enter for each
tested unit the information required in
columns (ii) through (xvi), based on
the tentative gross tested income
attributable to each tested unit
(without regard to any amounts
excluded under the GILTI high-tax
exclusion in Regulations section
1.951A-2(c)(7) (“GILTI high-tax
exclusion”)). If the GILTI high-tax
exclusion applies with respect to any
tested unit of the CFC, include the
amounts reported for columns (ii)
through (xiii) and (xvi) in the total
reported on line 4. See the
instructions for line 4. As a result, the
total amount entered on line 3 may not
equal the sum of the amounts
reported in columns (ii) through (xiii)
and (xvi) on lines 3(1), 3(2), etc., if any
tested unit’s tentative tested income is
excluded under the GILTI high-tax
exclusion (these amounts are
included in the total amounts reported
on line 4). In general, tested income
will be in a single tested income group
within the general category. Because
a CFC cannot earn section 951A
category income or foreign branch
category income at the CFC level,
there is no tested income group within
either section 904 category. With
respect to the general category tested
income group of a CFC, GILTI
inclusion amounts and taxes with
respect to the tested income group
will generally be treated as income
and deemed paid taxes in the section
951A category. See Regulations
sections 1.904-4(g) and 1.904-6(e).
Line 4. Residual Income Group
Use line 4 to report the information
required in columns (i) through (xvi)
that is in a section 904 category but
that is not of a type that is included in
one of the subpart F income groups or
a tested income group and is
therefore assigned to the residual
income group. See Regulations
section 1.960-1(d)(2)(ii)(D). Enter the
name of each QBU and enter the
information required for columns (i)
through (xvi) for each QBU on lines
4(1), 4(2), etc., but do not enter
amounts excluded from subpart F
income under the subpart F high-tax
exception (those amounts are
reported on lines (1), (2), etc., under
lines 1a through 1j) or tested income
under the GILTI high-tax exclusion
(those amounts are reported on lines
3(1), 3(2), etc.,). Enter the sum of the
amounts reported on lines 4(1), 4(2),
etc., plus the sum of amounts
excluded from subpart F income
under the subpart F high-tax
exception and tested income under
the GILTI high-tax exclusion, in the
appropriate column on line 4.
Example. For line 1a(1), $100 of
gross income is reported in column
(ii), $35 of foreign tax is reported in
each of columns (x) and (xii), and the
checkbox in column (xiv) is checked.
For line 1a(2), $75 of gross income is
reported in column (ii), $5 of foreign
tax is reported in each of columns (x)
and (xii), and the checkbox in column
(xiv) is not checked. For line 3(1),
$200 of gross income is reported in
column (ii), $70 of foreign tax is
reported in each of columns (x) and
(xii), and the checkbox in column (xiv)
is checked. For line 3(2), $150 of
gross income is reported in column
(ii), $10 of foreign tax is reported in
each of columns (x) and (xii), and the
checkbox in column (xiv) is not
checked. For line 4(1), $300 of gross
income is reported in column (ii) and
$105 of foreign tax is reported in
column (x). On line 4(1), both columns
(xii) and (xiv) should be blank in all
cases. As a result, the amount
reported on line 4 for column (ii) is the
sum of the amounts reported in
column (ii) on lines 1a(1), 3(1), and
4(1), which equals $600 ($100 + $200
+ $300). The amount reported in
column (x) of line 4 is the sum of the
amounts reported in column (x) on
lines 1a(1), 3(1), and 4(1), which
equals $210 ($35 + $70 + $105). No
amount should be reported in column
(xii) of line 4 as foreign tax on residual
amounts are not creditable. The
amounts reported on line 1a(1) would
not be included in the total for line 1a,
but the amount reported on line 1a(2)
would be included in the total reported
on line 1a. Similarly, the amounts
reported on line 3(1) would not be
included in the total reported on line 3,
but the amounts reported on line 3(2)
would be reported in the total reported
on line 3.
Column (i). Consistent with the
reporting requirement on Form 1118,
enter the two-letter code (from the list
at IRS.gov/CountryCodes) of each
foreign country and U.S. territory
within which income is sourced and/or
to which taxes were paid or accrued.
Column (ii). Enter the amount of
gross income of the CFC that is
assigned to each income group within
each section 904 category.
Columns (iii) through (vii). Expen-
ses. Deductions of the CFC,
including for current year taxes, are
allocated and apportioned to the
income groups to determine net
income (or loss) in each income group
and to identify the current year foreign
income taxes that relate to the income
in each income group for section 960
purposes. See Regulations section
1.960-1(c)(1) and 1.960-1(d)(3)(ii).
Enter the expenses allocated and
apportioned to the item of gross
income reported for each QBU or
tested unit as well as the aggregate
amount of such expenses allocated
and apportioned to each group. See
the instructions for lines 1 through 4.
Column (viii). Current year tax on
reattributed income from disregar-
ded payments. This column is used
to report current year tax imposed
solely by reason of the receipt of a
disregarded payment that is a
reattribution payment. The current
year tax is allocated and apportioned
to the income group to which an
amount of gross income is assigned
by reason of the receipt of the
reattribution payment. See
Regulations sections 1.960-1(d)(3)(ii)
(A) and 1.861-20(d)(3)(v)(B). Report
current year taxes allocated and
apportioned to the item of gross
income reported for each QBU or
tested unit as well as the aggregate
amount of such foreign taxes in each
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group. See the instructions for lines 1
through 4.
Column (ix). Current year tax on all
other disregarded payments. This
column is used to report current tax
imposed solely by reason of the
receipt of a disregarded payment
other than a reattribution payment,
and which is therefore either a
remittance or a contribution. See
Regulations section 1.861-20(d)(3)(v)
(C). Foreign tax imposed by reason of
a disregarded payment that is a
remittance is assigned to the income
groups based upon the assets of the
payor. See Regulations section
1.861-20(d)(3)(v)(C)(1). Foreign tax
imposed by reason of a disregarded
payment that is a contribution is
assigned to the residual grouping.
See Regulations section 1.861-20(d)
(3)(v)(C)(2). Report current year taxes
allocated and apportioned to the item
of gross income reported for each
QBU or tested unit as well as the
aggregate amount of such foreign
taxes allocated and apportioned to
each group. See the instructions for
lines 1 through 4.
Column (x). Other current year tax-
es. Any other current year tax is
allocated and apportioned among the
section 904 categories under the rules
of Regulations section 1.904-6(a)
based on the portion of the foreign
taxable income (as characterized
under federal income tax principles)
that is assigned to a particular section
904 category. Any other current year
foreign tax is allocated to the CFC
income group to which the items of
foreign gross income are assigned
under the rules of Regulations section
1.861-20. Report current year taxes
allocated and apportioned to the item
of gross income reported for each
QBU or tested unit as well as the
aggregate amount of such foreign
taxes allocated and apportioned to
each group. See the instructions for
lines 1 through 4.
Column (xii). Foreign taxes for
which credit is allowed (U.S. dol-
lars). The amount reported in column
(xii) may not be the same as the sum
of the amounts in columns (viii)
through (x) if columns (viii) through (x)
include taxes that are not creditable,
including taxes paid or accrued to
sanctioned countries; foreign taxes
disallowed under section 901(k), (m),
and (l); and taxes paid or accrued to
the United States.
Column (xiii). Average asset value.
Foreign gross income that arises from
a disregarded payment that is treated
as a remittance for U.S. tax purposes
is assigned to an income group by
reference to the income groups to
which the assets of the payor taxable
unit are assigned (or would be
assigned if the taxable unit were a
U.S. person) under the rules of
Regulations section 1.861-9 for
purposes of apportioning interest
expense. This rule uses the payor’s
asset apportionment percentages as
a proxy for the accumulated earnings
of the payor taxable unit from which
the remittance is made. For this
purpose, the assets of the taxable unit
making the remittance are determined
in accordance with the rules of
Regulations section 1.987-6(b) that
apply in determining the source and
separate category of exchange gain
or loss on a section 987 remittance,
as modified in two respects. See
Regulations section 1.861-20(d)(3)(v)
(C)(1). Report asset values for each
QBU or tested unit as well as the
aggregate amount of assets in each
group. See the instructions for lines 1
through 4.
Column (xiv). High-tax election.
Check the box in column (xiv) of the
line corresponding to any item of
income with respect to which the
subpart F high-tax exception applies.
If any amount is excluded under the
subpart F high-tax exception, do not
include it in the total for lines 1a
through 1j, but instead add the
amount to the total for line 4. See the
instructions for lines 1 and 4. If a GILTI
high-tax exclusion under Regulations
section 1.951A-2(c)(7)(viii) is effective
with respect to the CFC for the CFC
inclusion year, check the box in
column (xiv) that corresponds to the
item(s) of income to which the
exception applies. If an amount
reported on line 3(1), 3(2), etc., is
excluded from gross income under the
GILTI high-tax exclusion, do not
include it in the total amount for line 3.
Instead, include the amounts in the
total for line 4. See the instructions for
lines 3 and 4.
Column (xv). Loss allocation. This
column is used to report a reduction to
subpart F income in each applicable
income group when the foreign
corporation's subpart F income
exceeds current year E&P. See
Regulations sections 1.952-1(c) and
(e) and 1.951A-6.
Schedule R
Schedule R is used to report basic
information pertaining to distributions
from foreign corporations. This
information is required by sections
245A, 959, and 986(c).
Name of Person Filing Form
5471
The name of the person filing Form
5471 is generally the name of the U.S.
person described in the category or
categories of filers (see
Categories of
Filers, earlier). However, in the case of
a consolidated return, enter the name
of the U.S. parent in the field for
“Name of person filing Form 5471.”
Reference ID Number of
Foreign Corporation
If applicable, use the reference ID
number shown on Form 5471, page 1,
item 1b(2).
Column (a). Description of distri-
bution. The description should
include whether the distribution was
cash or noncash and taxable or
nontaxable to shareholders. Use code
sections to properly identify the
taxable or nontaxable consequences
of the distribution. For example,
“taxable cash dividend eligible for a
dividends received deduction under
section 245A” or “nontaxable cash
distribution of PTEP.” Report parts of a
distribution on separate rows if the
distribution is partially taxable and
partially nontaxable, or if the
distribution is either taxable or
nontaxable by reason of different
Code sections. For example, a cash
distribution of $100 that is a
nontaxable distribution of PTEP under
section 959(a) of $30, a taxable
dividend eligible for a dividends
received deduction under section
245A of $15, a taxable dividend under
section 301(c)(1) of $25, a nontaxable
distribution applied against basis
under section 301(c)(2) of $10, and a
taxable distribution treated as gain
from the sale or exchange of property
under section 301(c)(3) of $20 would
be reported on five rows.
If noncash distributions were made,
attach a statement and show both the
tax bases and FMVs.
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Column (b). Date of distribution.
Enter the month, day, and year using
the following format: MM-DD-YYYY.
For example, June 30, 2023, would be
entered as “06-30-2023.”
Column (c). Amount of distribution
in foreign corporation's functional
currency. The amount of a
distribution is generally the amount of
any money paid to the shareholder
plus the FMV of any property
transferred to the shareholder.
However, this amount is reduced (but
not below zero) by the following
liabilities.
•
Any liability of the corporation the
shareholder assumes in connection
with the distribution.
•
Any liability to which the property is
subject immediately before, and
immediately after, the distribution.
Column (d). Amount of E&P distri-
bution in foreign corporation's
functional currency. A corporate
distribution to a shareholder is
generally treated as a distribution of
E&P. Report distributions from current
and accumulated E&P. Do not report
any part of a distribution that is not
from E&P in column (d).
An actual distribution is first out of
PTEP, if any, and then out of the
section 959(c)(3) balance. See
section 959(c).
If PTEP were distributed, include
on Form 5471, Schedule I, line 6, any
foreign currency gain or loss on the
distribution that is recognized under
section 986(c). See the instructions
for Schedule I, Line 6, earlier, for
details. With respect to foreign
currency gain or loss on a distribution
of PTEP, for a corporate U.S.
shareholder, include the gain or (loss)
as “Other income” on Form 1120,
line 10, or on the comparable line of
other corporate tax returns. For a
noncorporate U.S. shareholder,
include the result as “Other income”
on Schedule 1 (Form 1040), line 8z, or
on the comparable line of other
noncorporate tax returns.
Note. E&P described in section
959(c)(3) is generally E&P of the
foreign corporation that has not been
included in gross income of a U.S.
shareholder under section 951(a)(1)
or section 951A.
Note. Amounts entered in
Schedule R (Form 5471), column (d),
are also included on line 9, column (f),
of Schedule J (Form 5471) and Part I,
line 8, of Schedule P (Form 5471),
both of which are completed by
separate category of income. If the
filer is required to complete
Schedule J (Form 5471) with respect
to more than one category of income,
the total of all amounts entered in
Schedule R (Form 5471), column (d),
should equal the amount entered on
line 9, column (f), of the Schedule J
(Form 5471) that is filed with code
“TOTAL” entered on line a of that
Schedule J.
Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the
United States. You are required to give us the information. We need it to ensure that you are complying with these laws
and to allow us to figure and collect the right amount of tax.
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act
unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be
retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax
returns and return information are confidential, as required by section 6103.
The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden
for individual and business taxpayers filing this form is approved under OMB control number 1545-0074 and 1545-0123
and is included in the estimates shown in the instructions for their individual and business income tax return.
Instructions for Form 5471 (Rev. 01-2024)
49
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Principal Business Activity Codes
This list of principal business activities and their
associated codes is designed to classify an
enterprise by the type of activity in which it is
engaged to facilitate the administration of the
Internal Revenue Code. These principal business
activity codes are based on the North American
Industry Classification System.
Using the list of activities and codes below,
determine from which activity the company derives
the largest percentage of its “total receipts.” If the
company purchases raw materials and supplies
them to a subcontractor to produce the finished
product, but retains title to the product, the
company is considered a manufacturer and must
use one of the manufacturing codes
(311110-339900).
Enter on page 1, Item 1f, the six-digit code
selected from the list below. In item 1g, enter a
brief description of the company's business
activity.
Agriculture, Forestry, Fishing,
and Hunting
Crop Production
111100 Oilseed & Grain Farming
111210 Vegetable & Melon Farming
(including potatoes & yams)
111300 Fruit & Tree Nut Farming
111400 Greenhouse, Nursery, &
Floriculture Production
111900 Other Crop Farming
(including tobacco, cotton,
sugarcane, hay, peanut,
sugar beet & all other crop
farming)
Animal Production
112111 Beef Cattle Ranching &
Farming
112112 Cattle Feedlots
112120 Dairy Cattle & Milk Production
112210 Hog & Pig Farming
112300 Poultry & Egg Production
112400 Sheep & Goat Farming
112510 Aquaculture (including
shellfish & finfish farms &
hatcheries)
112900 Other Animal Production
Forestry and Logging
113110 Timber Tract Operations
113210 Forest Nurseries & Gathering
of Forest Products
113310 Logging
Fishing, Hunting, and Trapping
114110 Fishing
114210 Hunting & Trapping
Support Activities for Agriculture
and Forestry
115110 Support Activities for Crop
Production (including cotton
ginning, soil preparation,
planting, & cultivating)
115210 Support Activities for Animal
Production (including farriers)
115310 Support Activities For
Forestry
Mining
211120 Crude Petroleum Extraction
211130 Natural Gas Extraction
212110 Coal Mining
212200 Metal Ore Mining
212310 Stone Mining & Quarrying
212320 Sand, Gravel, Clay, &
Ceramic & Refractory
Minerals Mining & Quarrying
212390 Other Nonmetallic Mineral
Mining & Quarrying
213110 Support Activities for Mining
Utilities
221100 Electric Power Generation,
Transmission & Distribution
221210 Natural Gas Distribution
221300 Water, Sewage & Other
Systems
221500 Combination Gas & Electric
Construction
Construction of Buildings
236110 Residential Building
Construction
236200 Nonresidential Building
Construction
Heavy and Civil Engineering
Construction
237100 Utility System Construction
237210 Land Subdivision
237310 Highway, Street, & Bridge
Construction
237990 Other Heavy & Civil
Engineering Construction
Specialty Trade Contractors
238100 Foundation, Structure, &
Building Exterior Contractors
(including framing carpentry,
masonry, glass, roofing, &
siding)
238210 Electrical Contractors
238220 Plumbing, Heating, &
Air-Conditioning Contractors
238290 Other Building Equipment
Contractors
238300 Building Finishing
Contractors (including
drywall, insulation, painting,
wallcovering, flooring, tile, &
finish carpentry)
238900 Other Specialty Trade
Contractors (including site
preparation)
Manufacturing
Food Manufacturing
311110 Animal Food Mfg
311200 Grain & Oilseed Milling
311300 Sugar & Confectionery
Product Mfg
311400 Fruit & Vegetable Preserving
& Specialty Food Mfg
311500 Dairy Product Mfg
311610 Animal Slaughtering and
Processing
311710 Seafood Product Preparation
& Packaging
311800 Bakeries, Tortilla & Dry Pasta
Mfg
311900 Other Food Mfg (including
coffee, tea, flavorings, &
seasonings)
Beverage and Tobacco Product
Manufacturing
312110 Soft Drink & Ice Mfg
312120 Breweries
312130 Wineries
312140 Distilleries
312200 Tobacco Manufacturing
Textile Mills and Textile Product
Mills
313000 Textile Mills
314000 Textile Product Mills
Apparel Manufacturing
315100 Apparel Knitting Mills
315210 Cut & Sew Apparel
Contractors
315250 Cut & Sew Apparel Mfg
(except Contractors)
315990 Apparel Accessories & Other
Apparel Mfg
Leather and Allied Product
Manufacturing
316110 Leather & Hide Tanning &
Finishing
316210 Footwear Mfg (including
rubber & plastics)
316990 Other Leather & Allied
Product Mfg
Wood Product Manufacturing
321110 Sawmills & Wood
Preservation
321210 Veneer, Plywood, &
Engineered Wood Product
Mfg
321900 Other Wood Product Mfg
Paper Manufacturing
322100 Pulp, Paper, & Paperboard
Mills
322200 Converted Paper Product Mfg
Printing and Related Support
Activities
323100 Printing & Related Support
Activities
Petroleum and Coal Products
Manufacturing
324110 Petroleum Refineries
(including integrated)
324120 Asphalt Paving, Roofing, &
Saturated Materials Mfg
324190 Other Petroleum & Coal
Products Mfg
Chemical Manufacturing
325100 Basic Chemical Mfg
325200 Resin, Synthetic Rubber, &
Artificial & Synthetic Fibers &
Filaments Mfg
325300 Pesticide, Fertilizer, & Other
Agricultural Chemical Mfg
325410 Pharmaceutical & Medicine
Mfg
325500 Paint, Coating, & Adhesive
Mfg
325600 Soap, Cleaning Compound, &
Toilet Preparation Mfg
325900 Other Chemical Product &
Preparation Mfg
Plastics and Rubber Products
Manufacturing
326100 Plastics Product Mfg
326200 Rubber Product Mfg
Nonmetallic Mineral Product
Manufacturing
327100 Clay Product & Refractory
Mfg
327210 Glass & Glass Product Mfg
327300 Cement & Concrete Product
Mfg
327400 Lime & Gypsum Product Mfg
327900 Other Nonmetallic Mineral
Product Mfg
Primary Metal Manufacturing
331110 Iron & Steel Mills & Ferroalloy
Mfg
331200 Steel Product Mfg from
Purchased Steel
331310 Alumina & Aluminum
Production & Processing
331400 Nonferrous Metal (except
Aluminum) Production &
Processing
331500 Foundries
Fabricated Metal Product
Manufacturing
332110 Forging & Stamping
332210 Cutlery & Handtool Mfg
332300 Architectural & Structural
Metals Mfg
332400 Boiler, Tank, & Shipping
Container Mfg
332510 Hardware Mfg
332610 Spring & Wire Product Mfg
332700 Machine Shops; Turned
Product; & Screw, Nut, & Bolt
Mfg
332810 Coating, Engraving, Heat
Treating, & Allied Activities
332900 Other Fabricated Metal
Product Mfg
Machinery Manufacturing
333100 Agriculture, Construction, &
Mining Machinery Mfg
333200 Industrial Machinery Mfg
333310 Commercial & Service
Industry Machinery Mfg
333410 Ventilation, Heating,
Air-Conditioning, &
Commercial Refrigeration
Equipment Mfg
333510 Metalworking Machinery Mfg
333610 Engine, Turbine & Power
Transmission Equipment Mfg
333900 Other General Purpose
Machinery Mfg
Computer and Electronic Product
Manufacturing
334110 Computer & Peripheral
Equipment Mfg
334200 Communications Equipment
Mfg
334310 Audio & Video Equipment
Mfg
334410 Semiconductor & Other
Electronic Component Mfg
334500 Navigational, Measuring,
Electromedical, & Control
Instruments Mfg
334610 Manufacturing & Reproducing
Magnetic & Optical Media
Electrical Equipment, Appliance,
and Component Manufacturing
335100 Electric Lighting Equipment
Mfg
335200 Household Appliance Mfg
335310 Electrical Equipment Mfg
335900 Other Electrical Equipment &
Component Mfg
Transportation Equipment
Manufacturing
336100 Motor Vehicle Mfg
336210 Motor Vehicle Body & Trailer
Mfg
336300 Motor Vehicle Parts Mfg
336410 Aerospace Product & Parts
Mfg
336510 Railroad Rolling Stock Mfg
336610 Ship & Boat Building
336990 Other Transportation
Equipment Mfg
Furniture and Related Product
Manufacturing
337000 Furniture & Related Product
Manufacturing
Miscellaneous Manufacturing
339110 Medical Equipment &
Supplies Mfg
339900 Other Miscellaneous
Manufacturing
Wholesale Trade
Merchant Wholesalers, Durable
Goods
423100 Motor Vehicle & Motor Vehicle
Parts & Supplies
423200 Furniture & Home Furnishings
423300 Lumber & Other Construction
Materials
423400 Professional & Commercial
Equipment & Supplies
423500 Metal & Mineral (except
Petroleum)
423600 Household Appliances &
Electrical & Electronic Goods
423700 Hardware & Plumbing &
Heating Equipment &
Supplies
423800 Machinery, Equipment, &
Supplies
423910 Sporting & Recreational
Goods & Supplies
423920 Toy & Hobby Goods &
Supplies
423930 Recyclable Materials
423940 Jewelry, Watch, Precious
Stone, & Precious Metals
423990 Other Miscellaneous Durable
Goods
50
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Principal Business Activity Codes (Continued)
Merchant Wholesalers, Nondurable
Goods
424100 Paper & Paper Products
424210 Drugs & Druggists' Sundries
424300 Apparel, Piece Goods, &
Notions
424400 Grocery & Related Products
424500 Farm Product Raw Materials
424600 Chemical & Allied Products
424700 Petroleum & Petroleum
Products
424800 Beer, Wine, & Distilled
Alcoholic Beverages
424910 Farm Supplies
424920 Book, Periodical, &
Newspapers
424930 Flower, Nursery Stock, &
Florists' Supplies
424940 Tobacco Products &
Electronic Cigarettes
424950 Paint, Varnish, & Supplies
424990 Other Miscellaneous
Nondurable Goods
Wholesale Trade Agents and
Brokers
425120 Wholesale Trade Agents &
Brokers
Retail Trade
Motor Vehicle and Parts Dealers
441110 New Car Dealers
441120 Used Car Dealers
441210 Recreational Vehicle Dealers
441222 Boat Dealers
441227 Motorcycle, ATV, & All other
Motor Vehicle Dealers
441300 Automotive Parts,
Accessories, & Tire Retailers
Building Material and Garden
Equipment and Supplies Dealers
444110 Home Centers
444120 Paint & Wallpaper Retailers
444140 Hardware Retailers
444180 Other Building Material
Dealers
444200 Lawn & Garden Equipment &
Supplies Retailers
Food and Beverage Retailers
445110 Supermarkets and Other
Grocery Retailers (except
Convenience)
445131 Convenience Retailers
445132 Vending Machine Operators
445230 Fruit & Vegetable Retailers
445240 Meat Retailers
445250 Fish & Seafood Retailers
445291 Baked Goods Retailers
445292 Confectionery & Nut Retailers
445298 All Other Specialty Food
Retialers
445320 Beer, Wine, & Liquor
Retailers
Furniture and Home Furnishings
Retailers
449110 Furniture Retailers
449121 Floor Covering Retailers
449122 Window Treatment Retailers
449129 All Other Home Furnishings
Retailers
Electronics and Appliance Retailers
449210 Electronic & Appliance
Retailers (including
computers)
General Merchandise Retailers
455110 Department Stores
455210 Warehouse Clubs,
Supercenters,& Other
General Merch. Retailers
Health and Personal Care Retailers
456110 Pharmacies & Drug Retailers
456120 Cosmetics, Beauty Supplies,
& Perfume Retailers
456130 Optical Goods Retailers
456190 Other Health & Personal Care
Retailers
Gasoline Stations & Fuel Dealers
457100 Gasoline Stations (including
convenience stores with gas)
457210 Fuel Dealers (including
Heating Oil & Liquefied
Petroleum)
Clothing and Accessories Retailers
458110 Clothing & Clothing
Accessories Retailers
458210 Shoe Retailers
458310 Jewelry Retaileres
458320 Luggage & Leather Goods
Retailers
Sporting, Hobby, Book, Musical
Instrument & Miscellaneous
Retailers
459110 Sporting Goods Retailers
459120 Hobby, Toy, & Game Retailers
459130 Sewing, Needlework, & Piece
Goods Retailers
459140 Musical Instrument &
Supplies Retailers
459210 Book Retailers & News
Dealers (including
newsstands)
459310 Florists
459410 Office Supplies & Stationery
Retailers
459420 Gift, Novelty, & Souvenir
Retailers
459510 Used Merchandise Retailers
459910 Pet & Pet Supplies Retailers
459920 Art Dealers
459930 Manufactured (Mobile) Home
Dealers
459990 All Other Miscellaneous
Retailers (including tobacco,
candle, & trophy retailers)
Nonstore Retailers
various Nonstore retailers sell all
types of merchandise using
such methods as Internet,
mail-order catalogs,
interactive television, or direct
sales. These types of
Retailers should select the
PBA associated with their
primary line of products sold.
For example, establishments
primarily selling prescription
and non-prescription drugs,
select PBA code 456110
Pharmacies & Drug Retailers.
Transportation and
Warehousing
Air, Rail, and Water Transportation
481000 Air Transportation
482110 Rail Transportation
483000 Water Transportation
Truck Transportation
484110 General Freight Trucking,
Local
484120 General Freight Trucking,
Long-distance
484200 Specialized Freight Trucking
Transit and Ground Passenger
Transportation
485110 Urban Transit Systems
485210 Interurban & Rural Bus
Transportation
485310 Taxi Service
485320 Limousine Service
485410 School & Employee Bus
Transportation
485510 Charter Bus Industry
485990 Other Transit & Ground
Passenger Transportation
Pipeline Transportation
486000 Pipeline Transportation
Scenic & Sightseeing
Transportation
487000 Scenic & Sightseeing
Transportation
Support Activities for
Transportation
488100 Support Activities for Air
Transportation
488210 Support Activities for Rail
Transportation
488300 Support Activities for Water
Transportation
488410 Motor Vehicle Towing
488490 Other Support Activities for
Road Transportation
488510 Freight Transportation
Arrangement
488990 Other Support Activities for
Transportation
Couriers and Messengers
492110 Couriers & Express Delivery
Services
492210 Local Messengers & Local
Delivery
Warehousing and Storage
493100 Warehousing & Storage
(except lessors of
mini-warehouses &
self-storage units)
Information
Motion Picture and Sound
Recording Industries
512100 Motion Picture & Video
Industries (except video
rental)
512200 Sound Recording Industries
Publishing Industries
513110 Newspaper Publishers
513120 Periodical Publishers
513130 Book Publishers
513140 Directory & Mailing List
Publishers
513190 Other Publishers
513210 Software Publishers
Broadcasting & Content Providers
& Telecommunications
516100 Radio & Television
Broadcasting Stations
516210 Media Streaming, Social
Networks, & Other Content
Providers
517000 Telecommunications
(including Wired, Wireless,
Satellite, Cable & Other
Program Distribution,
Resellers, Agents & Other
Telecommunications, &
Internet Service Providers)
Data Processing, Web Search
Portals, & Other Information
Services
518210 Computing Infrastructure
Providers, Data Processing,
Web Hosting & Related
Services
519200 Web Search Portals,
Libraries, Archives, & Other
Info. Services
Finance and Insurance
Depository Credit Intermediation
522110 Commercial Banking
522130 Credit Unions
522180 Savings Institutions & Other
Depository Credit
Intermediation
Nondepository Credit
Intermediation
522210 Credit Card Issuing
522220 Sales Financing
522291 Consumer Lending
522292 Real Estate Credit (including
mortgage bankers &
originators)
522299 Intl, Secondary Market, &
Other Nondepos. Credit
Intermediation
Activities Related to Credit
Intermediation
522300 Activities Related to Credit
Intermediation (including loan
brokers, check clearing, &
money transmitting)
Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities
523150 Investment Banking &
Securities Intermediation
523160 Commodity Contracts
Intermediation
523210 Securities & Commodity
Exchanges
523900 Other Financial Investment
Activities (including portfolio
management & investment
advice)
Insurance Carriers and Related
Activities
524110 Direct Life, Health, & Medical
Insurance Carriers
524120 Direct Insurance (except Life,
Health & Medical) Carriers
524210 Insurance Agencies &
Brokerages
524290 Other Insurance Related
Activities (including
third-party administration of
insurance and pension funds)
Funds, Trusts, and Other Financial
Vehicles
525100 Insurance & Employee
Benefit Funds
525910 Open-End Investment Funds
(Form 1120-RIC, U.S. Income
Tax Return for Regulated
Investment Companies)
525920 Trusts, Estates, & Agency
Accounts
525990 Other Financial Vehicles
(including mortgage REITs
and closed-end investment
funds)“Offices of Bank
Holding Companies” and
“Offices of Other Holding
Companies” are located
under Management of
Companies (Holding
Companies) below.
Real Estate and Rental and
Leasing
Real Estate
531110 Lessors of Residential
Buildings & Dwellings
(including equity REITs)
531120 Lessors of Nonresidential
Buildings (except
Mini-warehouses) (including
equity REITs)
531130 Lessors of Mini-warehouses
& Self-Storage Units
(including equity REITs)
531190 Lessors of Other Real Estate
Property (including equity
REITs)
531210 Offices of Real Estate Agents
& Brokers
531310 Real Estate Property
Managers
531320 Offices of Real Estate
Appraisers
531390 Other Activities Related to
Real Estate
Rental and Leasing Services
532100 Automotive Equipment Rental
& Leasing
532210 Consumer Electronics &
Appliances Rental
532281 Formal Wear & Costume
Rental
532282 Video Tape & Disc Rental
532283 Home Health Equipment
Rental
532284 Recreational Goods Rental
532289 All Other Consumer Goods
Rental
532310 General Rental Centers
532400 Commercial & Industrial
Machinery & Equipment
Rental & Leasing
51
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Principal Business Activity Codes (Continued)
Lessors of Nonfinancial Intangible
Assets (except copyrighted works)
533110 Lessors of Nonfinancial
Intangible Assets (except
copyrighted works)
Professional, Scientific, and
Technical Services
Legal Services
541110 Offices of Lawyers
541190 Other Legal Services
Accounting, Tax Preparation,
Bookkeeping, and Payroll Services
541211 Offices of Certified Public
Accountants
541213 Tax Preparation Services
541214 Payroll Services
541219 Other Accounting Services
Architectural, Engineering, and
Related Services
541310 Architectural Services
541320 Landscape Architecture
Services
541330 Engineering Services
541340 Drafting Services
541350 Building Inspection Services
541360 Geophysical Surveying &
Mapping Services
541370 Surveying & Mapping (except
Geophysical) Services
541380 Testing Laboratories &
Services
Specialized Design Services
541400 Specialized Design Services
(including interior, industrial,
graphic, & fashion design)
Computer Systems Design and
Related Services
541511 Custom Computer
Programming Services
541512 Computer Systems Design
Services
541513 Computer Facilities
Management Services
541519 Other Computer Related
Services
Other Professional, Scientific, and
Technical Services
541600 Management, Scientific, &
Technical Consulting
Services
541700 Scientific Research &
Development Services
541800 Advertising, Public Relations,
& Related Services
541910 Marketing Research & Public
Opinion Polling
541920 Photographic Services
541930 Translation & Interpretation
Services
541940 Veterinary Services
541990 All Other Professional,
Scientific, & Technical
Services
Management of Companies
(Holding Companies)
551111 Offices of Bank Holding
Companies
551112 Offices of Other Holding
Companies
Administrative and Support and
Waste Management and
Remediation Services
Administrative and Support
Services
561110 Office Administrative
Services
561210 Facilities Support Services
561300 Employment Services
561410 Document Preparation
Services
561420 Telephone Call Centers
561430 Business Service Centers
(including private mail centers
& copy shops)
561440 Collection Agencies
561450 Credit Bureaus
561490 Other Business Support
Services (including
repossession services, court
reporting, & stenotype
services)
561500 Travel Arrangement &
Reservation Services
561600 Investigation & Security
Services
561710 Exterminating & Pest Control
Services
561720 Janitorial Services
561730 Landscaping Services
561740 Carpet & Upholstery Cleaning
Services
561790 Other Services to Buildings &
Dwellings
561900 Other Support Services
(including packaging &
labeling services, &
convention & trade show
organizers)
Waste Management and
Remediation Services
562000 Waste Management &
Remediation Services
Educational Services
611000 Educational Services
(including schools, colleges,
& universities)
Health Care and Social
Assistance
Offices of Physicians and Dentists
621111 Offices of Physicians (except
mental health specialists)
621112 Offices of Physicians, Mental
Health Specialists
621210 Offices of Dentists
Offices of Other Health
Practitioners
621310 Offices of Chiropractors
621320 Offices of Optometrists
621330 Offices of Mental Health
Practitioners (except
Physicians)
621340 Offices of Physical,
Occupational & Speech
Therapists, & Audiologists
621391 Offices of Podiatrists
621399 Offices of All Other
Miscellaneous Health
Practitioners
Outpatient Care Centers
621410 Family Planning Centers
621420 Outpatient Mental Health &
Substance Abuse Centers
621491 HMO Medical Centers
621492 Kidney Dialysis Centers
621493 Freestanding Ambulatory
Surgical & Emergency
Centers
621498 All Other Outpatient Care
Centers
Medical and Diagnostic
Laboratories
621510 Medical & Diagnostic
Laboratories
Home Health Care Services
621610 Home Health Care Services
Other Ambulatory Health Care
Services
621900 Other Ambulatory Health
Care Services (including
ambulance services & blood
& organ banks)
Hospitals
622000 Hospitals
Nursing and Residential Care
Facilities
623000 Nursing & Residential Care
Facilities
Social Assistance
624100 Individual & Family Services
624200 Community Food & Housing,
& Emergency & Other Relief
Services
624310 Vocational Rehabilitation
Services
624410 Childcare Services
Arts, Entertainment, and
Recreation
Performing Arts, Spectator Sports,
and Related Industries
711100 Performing Arts Companies
711210 Spectator Sports (including
sports clubs & racetracks)
711300 Promoters of Performing Arts,
Sports, & Similar Events
711410 Agents & Managers for
Artists, Athletes, Entertainers,
& Other Public Figures
711510 Independent Artists, Writers,
& Performers
Museums, Historical Sites, and
Similar Institutions
712100 Museums, Historical Sites, &
Similar Institutions
Amusement, Gambling, and
Recreation Industries
713100 Amusement Parks & Arcades
713200 Gambling Industries
713900 Other Amusement &
Recreation Industries
(including golf courses, skiing
facilities, marinas, fitness
centers, & bowling centers)
Accommodation and Food
Services
Accommodation
721110 Hotels (except Casino Hotels)
& Motels
721120 Casino Hotels
721191 Bed & Breakfast Inns
721199 All Other Traveler
Accommodation
721210 RV (Recreational Vehicle)
Parks & Recreational Camps
721310 Rooming & Boarding Houses,
Dormitories & Workers’
Camps
Food Services and Drinking Places
722300 Special Food Services
(including food service
contractors & caterers)
722410 Drinking Places (Alcoholic
Beverages)
722511 Full Service Restaurants
722513 Limited Service Restaurants
722514 Cafeterias, Grill buffets, &
Buffets
722515 Snack & Nonalcoholic
Beverage Bars
Other Services
Repair and Maintenance
811110 Automotive Mechanical &
Electrical Repair &
Maintenance
811120 Automotive Body, Paint,
Interior, & Glass Repair
811190 Other Automotive Repair &
Maintenance (including oil
change & lubrication shops &
car washes)
811210 Electronic & Precision
Equipment Repair &
Maintenance
811310 Commercial & Industrial
Machinery & Equipment
(except Automotive &
Electronic) Repair &
Maintenance
811410 Home & Garden Equipment &
Appliance Repair &
Maintenance
811420 Reupholstery & Furniture
Repair
811430 Footwear & Leather Goods
Repair
811490 Other Personal & Household
Goods Repair & Maintenance
Personal and Laundry Services
812111 Barber Shops
812112 Beauty Salons
812113 Nail Salons
812190 Other Personal Care Services
(including diet & weight
reducing centers)
812210 Funeral Homes & Funeral
Services
812220 Cemeteries & Crematories
812310 Coin-Operated Laundries &
Drycleaners
812320 Drycleaning & Laundry
Services (except
Coin-Operated)
812330 Linen & Uniform Supply
812910 Pet Care (except Veterinary)
Services
812920 Photofinishing
812930 Parking Lots & Garages
812990 All Other Personal Services
Religious, Grantmaking, Civic,
Professional, and Similar
Organizations
813000 Religious, Grantmaking,
Civic, Professional, & Similar
Organizations (including
condominium and
homeowners associations)
Other
999000 Unclassified Establishments
(unable to classify)
52
