### Question
What does 10-percent owned foreign corporation mean?


### Answer
**10-percent owned foreign corporation** has the following meaning in *26 U.S.C. § 988*:

> any foreign corporation in which the United States person owns directly or indirectly at least 10 percent of the voting stock

#### Citation:
  - *26 U.S.C. § 988*
  - 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 J-Foreign Currency Transactions**

