### Question
How is the "qualified activity" defined?


### Answer
The term **qualified activity** is defined in *26 U.S.C. § 952* as follows -

> any activity giving rise to—


(I) foreign base company sales income,


(II) foreign base company services income,


(III) in the case of a qualified insurance company, insurance income or foreign personal holding company income, or


(IV) in the case of a qualified financial institution, foreign personal holding company income

#### Citation:
  - *26 U.S.C. § 952*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter N-Tax Based on Income From Sources Within or Without the United States > PART III-INCOME FROM SOURCES WITHOUT THE UNITED STATES > Subpart F-Controlled Foreign Corporations**

