### Question
How does the law define qualified foreign pension fund?


### Answer
Under *26 U.S.C. § 897*, **qualified foreign pension fund** is defined as:

> any trust, corporation, or other organization or arrangement—



(A) which is created or organized under the law of a country other than the United States,



(B) which is established to provide retirement or pension benefits to participants or beneficiaries that are current or former employees (or persons designated by such employees) of one or more employers in consideration for services rendered,



(C) which does not have a single participant or beneficiary with a right to more than five percent of its assets or income,



(D) which is subject to government regulation and provides annual information reporting about its beneficiaries to the relevant tax authorities in the country in which it is established or operates, and



(E) with respect to which, under the laws of the country in which it is established or operates—



(i) contributions to such trust, corporation, organization, or arrangement which would otherwise be subject to tax under such laws are deductible or excluded from the gross income of such entity or taxed at a reduced rate, or



(ii) taxation of any investment income of such trust, corporation, organization or arrangement is deferred or such income is taxed at a reduced rate

#### Citation:
  - *26 U.S.C. § 897*
  - 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 II-NONRESIDENT ALIENS AND FOREIGN CORPORATIONS > Subpart D-Miscellaneous Provisions**

