26 U.S.C. § 958 : US Code - Section 958: Rules for determining stock ownership

Search 26 U.S.C. § 958 : US Code - Section 958: Rules for determining stock ownership

(a) Direct and indirect ownership
(1) General rule
For purposes of this subpart (other than section 960(a)(1)),
stock owned means -
(A) stock owned directly, and
(B) stock owned with the application of paragraph (2).
(2) Stock ownership through foreign entities
For purposes of subparagraph (B) of paragraph (1), stock owned,
directly or indirectly, by or for a foreign corporation, foreign
partnership, or foreign trust or foreign estate (within the
meaning of section 7701(a)(31)) shall be considered as being
owned proportionately by its shareholders, partners, or
beneficiaries. Stock considered to be owned by a person by reason
of the application of the preceding sentence shall, for purposes
of applying such sentence, be treated as actually owned by such
person.
(3) Special rule for mutual insurance companies
For purposes of applying paragraph (1) in the case of a foreign
mutual insurance company, the term "stock" shall include any
certificate entitling the holder to voting power in the
corporation.
(b) Constructive ownership
For purposes of sections 951(b), 954(d)(3), 956(c)(2), and 957,
section 318(a) (relating to constructive ownership of stock) shall
apply to the extent that the effect is to treat any United States
person as a United States shareholder within the meaning of section
951(b), to treat a person as a related person within the meaning of
section 954(d)(3), to treat the stock of a domestic corporation as
owned by a United States shareholder of the controlled foreign
corporation for purposes of section 956(c)(2), or to treat a
foreign corporation as a controlled foreign corporation under
section 957, except that -
(1) In applying paragraph (1)(A) of section 318(a), stock owned
by a nonresident alien individual (other than a foreign trust or
foreign estate) shall not be considered as owned by a citizen or
by a resident alien individual.
(2) In applying subparagraphs (A), (B), and (C) of section
318(a)(2), if a partnership, estate, trust, or corporation owns,
directly or indirectly, more than 50 percent of the total
combined voting power of all classes of stock entitled to vote of
a corporation, it shall be considered as owning all the stock
entitled to vote.
(3) In applying subparagraph (C) of section 318(a)(2), the
phrase "10 percent" shall be substituted for the phrase "50
percent" used in subparagraph (C).
(4) Subparagraph (A), (B), and (C) of section 318(a)(3) shall
not be applied so as to consider a United States person as owning
stock which is owned by a person who is not a United States
person.
Paragraphs (1) and (4) shall not apply for purposes of section
956(c)(2) to treat stock of a domestic corporation as not owned by
a United States shareholder.