Page 164 - International Taxation IRS Training Guides
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Participation Exemption (Cont'd)











                  No 245A DRD


                                                                                                   Other
                                                     USC
                                                                                            Shareholders

                                                                     10%
                                                                     or more



                                 $100

                                 Distribution
                                                                              CFC






                                                          100% of CFC’s          income qualifies as

                                                          foreign source;
                                                          CFC is
                                                                     entitled to a deduction for the
                                                          distribution under        local law






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