### Question
Can you define what qualified activity means?


### Answer
**Qualified activity** is defined as the following in *26 U.S.C. § 952*:

> any activity giving rise to—


(I) foreign base company shipping income,


(II) foreign base company oil related income,


(III) foreign base company sales income,


(IV) foreign base company services income,


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


(VI) 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**

