Page 168 - Tax Reform

131 STAT. 2218 PUBLIC LAW 115–97—DEC. 22, 2017

(1) the last taxable year of foreign corporations beginning
before January 1, 2018, and each subsequent taxable year
of such foreign corporations, and
(2) taxable years of United States shareholders in which
or with which such taxable years of foreign corporations end.
SEC. 14214. MODIFICATION OF DEFINITION OF UNITED STATES SHARE-
HOLDER.
26 USC 951. (a) IN GENERAL.—Section 951(b) is amended by inserting ‘‘,
or 10 percent or more of the total value of shares of all classes
of stock of such foreign corporation’’ after ‘‘such foreign corporation’’.
26 USC 951 note. (b) EFFECTIVE DATE.—The amendment made by this section
shall apply to taxable years of foreign corporations beginning after
December 31, 2017, and to taxable years of United States share-
holders with or within which such taxable years of foreign corpora-
tions end.
SEC. 14215. ELIMINATION OF REQUIREMENT THAT CORPORATION
MUST BE CONTROLLED FOR 30 DAYS BEFORE SUBPART
F INCLUSIONS APPLY.
(a) IN GENERAL.—Section 951(a)(1) is amended by striking ‘‘for
an uninterrupted period of 30 days or more’’ and inserting ‘‘at
any time’’.
26 USC 951 note. (b) EFFECTIVE DATE.—The amendment made by this section
shall apply to taxable years of foreign corporations beginning after
December 31, 2017, and to taxable years of United States share-
holders with or within which such taxable years of foreign corpora-
tions end.
CHAPTER 3—PREVENTION OF BASE EROSION
SEC. 14221. LIMITATIONS ON INCOME SHIFTING THROUGH INTAN-
GIBLE PROPERTY TRANSFERS.
(a) DEFINITION OF INTANGIBLE ASSET.—Section 936(h)(3)(B) is
amended—
(1) by striking ‘‘or’’ at the end of clause (v),
(2) by striking clause (vi) and inserting the following:
‘‘(vi) any goodwill, going concern value, or
workforce in place (including its composition and terms
and conditions (contractual or otherwise) of its employ-
ment); or
‘‘(vii) any other item the value or potential value
of which is not attributable to tangible property or
the services of any individual.’’, and
(3) by striking the flush language after clause (vii), as
added by paragraph (2).
(b) CLARIFICATION OF ALLOWABLE VALUATION METHODS.—
(1) FOREIGN CORPORATIONS.—Section 367(d)(2) is amended
by adding at the end the following new subparagraph:
‘‘(D) REGULATORY AUTHORITY.—For purposes of the last
sentence of subparagraph (A), the Secretary shall require—
‘‘(i) the valuation of transfers of intangible prop-
erty, including intangible property transferred with
other property or services, on an aggregate basis, or
‘‘(ii) the valuation of such a transfer on the basis
of the realistic alternatives to such a transfer,
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if the Secretary determines that such basis is the most
reliable means of valuation of such transfers.’’.