### Question
How is the "noncontrolled 10-percent owned foreign corporation" defined?


### Answer
The term **noncontrolled 10-percent owned foreign corporation** is defined in *26 U.S.C. § 904* as follows -

> any foreign corporation which is—


(I) a specified 10-percent owned foreign corporation (as defined in section 245A(b)), or


(II) a passive foreign investment company (as defined in section 1297(a)) with respect to which the taxpayer meets the stock ownership requirements of section 902(a) (or, for purposes of applying paragraphs (3) and (4), the requirements of section 902(b))

#### Citation:
  - *26 U.S.C. § 904*
  - 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 A-Foreign Tax Credit**

