Form 1118 (Rev. December 2020)Department of the Treasury

Form 1118
(Rev. December 2020)
Department of the Treasury
Internal Revenue Service
Foreign Tax Credit—Corporations
▶ Attach to the corporation’s tax return.
▶ Go to www.irs.gov/Form1118 for instructions and the latest
information.
For calendar year 20 , or other tax year beginning , 20 , and
ending , 20
OMB No. 1545-0123
Attachment
Sequence No. 118
Name of corporation Employer identification number
Use a separate Form 1118 for each applicable category of
income (see instructions).
a Separate Category (Enter code—see instructions.) . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . ▶
b If code 901j is entered on line a, enter the country code for
the sanctioned country (see instructions) . . . . . . . . . . . . . . ▶
c If one of the RBT codes is entered on line a, enter the country
code for the treaty country (see instructions) . . . . . . . . . . . . ▶
Schedule A Income or (Loss) Before Adjustments (Report all

amounts in U.S. dollars. See Specific Instructions.)
1. EIN or Reference ID
Number
(see instructions)*
2. Foreign Country or
U.S. Possession
(enter two-letter code—use
a separate line for each)
(see instructions)
Gross Income or (Loss) From Sources Outside the United States
3. Inclusions Under Sections 951(a)(1) and 951A
(see instructions)
4. Dividends
(see instructions) 5. Interest
(a) Exclude Gross-Up (b) Gross-Up (section 78) (a)
Exclude Gross-Up (b) Gross-Up (section 78)
A
B
C
Totals (add lines A through C) . . . . . . . ▶
6. Gross Rents, Royalties,
and License Fees
7. Sales

8. Gross Income From
Performance of Services
9. Section 986(c) Gain 10. Section 987 Gain 11. Section 988
Gain
12. Other
(attach schedule)
A
B
C
Totals
13. Total
(add columns 3(a)
through 12)
14. Allocable Deductions
(a) Dividends
Received Deduction
(see instructions)
(b) Deduction Allowed Under
Section 250(a)(1)(A)—Foreign
Derived Intangible Income
(c) Deduction Allowed Under
Section 250(a)(1)(B)—Global
Intangible Low-Taxed Income

Rental, Royalty, and Licensing Expenses
(d) Depreciation, Depletion,
and Amortization
(e) Other Allocable
Expenses
(f) Expenses Allocable
to Sales Income
A
B
C
Totals
14. Allocable Deductions (continued)
(g) Expenses Allocable
to Gross Income From
Performance of Services
(h) Other Allocable
Deductions (attach schedule)
(see instructions)
(i) Total Allocable Deductions
(add columns 14(a)
through 14(h))

15. Apportioned
Share of Deductions
(enter amount from
applicable line of Schedule H,
Part II, column (d))
16. Net Operating
Loss Deduction
17. Total Deductions
(add columns 14(i)
through 16)
18. Total Income or (Loss)
Before Adjustments
(subtract column 17
from column 13)
A
B
C
Totals
* For section 863(b) income, NOLs, income from RICs, high-
taxed income, section 965, section 951A, and reattribution of
income by reason of disregarded payments, use a single line
(see instructions).
Also, for reporting branches that are QBUs, use a separate line
for each such branch.
For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 10900F Form 1118 (Rev. 12-2020)
Form 1118 (Rev. 12-2020) Page 2
Schedule B Foreign Tax Credit (Report all foreign tax amounts
in U.S. dollars.)
Part I—Foreign Taxes Paid, Accrued, and Deemed Paid (see
instructions)
1. Credit Is Claimed for Taxes
(check one):
Paid Accrued
2. Foreign Taxes Paid or Accrued (attach schedule showing
amounts in foreign currency and conversion rate(s) used)
Tax Withheld at Source on:
(a) Dividends
(b) Distributions of
Previously Taxed Earnings
and Profits
(c) Branch Remittances (d) Interest
(e) Rents, Royalties,
and License Fees
(f) Other
Date Paid Date Accrued
A

B
C
Totals (add lines A through C) . ▶
Other Foreign Taxes Paid or Accrued on:
(g) Sales (h) Services Income (i) Other
(j) Total Foreign Taxes Paid or Accrued
(add columns 2(a) through 2(i))
3. Tax Deemed Paid
(see instructions)
A
B
C
Totals
Part II—Separate Foreign Tax Credit (Complete a separate Part
II for each applicable category of income.)
1a Total foreign taxes paid or accrued (total from Part I, column
2(j)) . . . . . . . . . . . . . . . . . . . . . . .
b
Foreign taxes paid or accrued by the corporation during prior
tax years that were suspended due to the rules of section 909
and for
which the related income is taken into account by the

corporation during the current tax year (see instructions) . . . . .
. . .
2 Total taxes deemed paid (total from Part I, column 3) . . . . . .
. . . . . . . . . . . . . . . . . . . . .
3 Reductions of taxes paid, accrued, or deemed paid (enter total
from Schedule G) . . . . . . . . . . . . . . . . . . ( )
4 Taxes reclassified under high-tax kickout . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
5
Enter the sum of any carryover of foreign taxes (from Schedule
K, line 3, column (xiv), and from Schedule I, Part III, line 3)
plus any
carrybacks to the current tax year . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . .
6 Total foreign taxes (combine lines 1a through 5) . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
7
Enter the amount from the applicable column of Schedule J,
Part I, line 11 (see instructions). If Schedule J is not required to
be completed, enter the
result from the “Totals” line of column 18 of the applicable
Schedule A . . . . . . . . . . . . . . . . . . . . . . . . . . .
8a Total taxable income from all sources (enter taxable income
from the corporation’s tax return) . . . . . . . . . . . . . .
b Adjustments to line 8a (see instructions) . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
c Subtract line 8b from line 8a . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .

9 Divide line 7 by line 8c. Enter the resulting fraction as a
decimal (see instructions). If line 7 is greater than line 8c, enter
1 . . . . . . . . . . .
10 Total U.S. income tax against which credit is allowed
(regular tax liability (see section 26(b)) minus any American
Samoa economic development credit)
11 Multiply line 9 by line 10 . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . .
12 Increase in limitation (section 960(c)) . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
13 Credit limitation (add lines 11 and 12) (see instructions) . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14 Separate foreign tax credit (enter the smaller of line 6 or line
13). Enter here and on the appropriate line of Part III . . . . . . . .
. . . . ▶
Form 1118 (Rev. 12-2020)
Form 1118 (Rev. 12-2020) Page 3
Schedule B Foreign Tax Credit (continued) (Report all foreign
tax amounts in U.S. dollars.)
Part III—Summary of Separate Credits (Enter amounts from
Part II, line 14 for each applicable category of income. Do not
include taxes paid to sanctioned countries.)
1 Credit for taxes on section 951A category income . . . . . . . . .
. . . . . . . . . . . . . . . . . . .
2 Credit for taxes on foreign branch category income . . . . . . . .
. . . . . . . . . . . . . . . . . . . .
3 Credit for taxes on passive category income . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . .
4 Credit for taxes on general category income . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . .
5 Credit for taxes on section 901(j) category income (combine

all such credits on this line) . . . . . . . . . . . . . . . .
6 Credit for taxes on income re-sourced by treaty (combine all
such credits on this line) . . . . . . . . . . . . . . . .
7 Total (add lines 1 through 6) . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . .
8 Reduction in credit for international boycott operations (see
instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . .
9 Total foreign tax credit (subtract line 8 from line 7). Enter
here and on the appropriate line of the corporation’s tax return .
. . . . . . . . ▶
Schedule C Tax Deemed Paid With Respect to Section 951(a)(1)
Inclusions by Domestic Corporation Filing Return (Section
960(a))
Use this schedule to report the tax deemed paid by the
corporation with respect to section 951(a)(1) inclusions of
earnings from foreign corporations under
section 960(a). For each line in Schedule C, include the column
10 amount in column 3 of the line in Schedule B, Part I that
corresponds with the identifying
number specified in column 1 of Schedule A and that also
corresponds with the identifying number entered in column 1b
of this Schedule C (see
instructions).
1a. Name of Foreign Corporation
1b. EIN or
Reference ID
Number of the
Foreign Corporation
(see instructions)

1c. QBU Reference
ID (if applicable)
2. Tax Year End
(Year/Month)
(see instructions)
3. Country of
Incorporation (enter
country code—see
instructions)
4. Functional Currency
of Foreign Corporation
(enter code - see
instructions)
5. Subpart F Income Group
(a) Reg. sec. 1.960-1(d)
(2)(ii)(B)(2)(enter code)
(b) Reg. sec. 1.904-4(c)
(3)(i)-(iv) (enter code)
(c) Unit
6. Total Net Income in Subpart F
Income Group (in functional currency
of foreign corporation)

7. Total Current Year Taxes in
Subpart F Income Group
(in U.S. Dollars)
8. Section 951(a)(1) Inclusion Attributable to Subpart F Income
Group
(a) Functional Currency (b) U.S. Dollars
9. Divide column 8(a) by column 6
10. Tax Deemed Paid (multiply
column 7 by column 9)
Total (add amounts in column 10) . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . ▶
Form 1118 (Rev. 12-2020)
Form 1118 (Rev. 12-2020) Page 4
Schedule D Tax Deemed Paid With Respect to Section 951A
Income by Domestic Corporation Filing the Return (Section
960(d))
Use this schedule to figure the tax deemed paid by the
corporation with respect to section 951A inclusions of earnings
from foreign corporations under
section 960(d).
Part I—Foreign Corporation’s Tested Income and Foreign Taxes

1b. EIN or
Reference ID
Number of the
Foreign Corporation
(see instructions)
2. Tax Year End
(Year/Month)
(see instructions)
3. Country of
Incorporation (enter
country code—
see instructions)
4. Functional
Currency of Foreign
Corporation
(enter code)
5. Pro rata share of
CFC’s tested
income from
applicable Form
8992 schedule
(see instructions)
6. CFC’s tested

income from
applicable Form
8992 schedule
(see instructions)
7. Divide column 5
by column 6
8. CFC’s tested
foreign income
taxes from
Schedule Q
(Form 5471)
(see instructions)
9. Pro rata share of
tested foreign
income taxes paid
or accrued by CFC
(Multiply amount in
column 7 by amount
in column 8)
Total (add amounts in column 5) . . . . . . . . . . . . . . . . . . . . ▶
Total (add amounts in column 9) . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . ▶
Part II—Foreign Income Tax Deemed Paid
1. Global Intangible Low-Taxed Income
(Section 951A Inclusion)

2. Inclusion Percentage.
Divide Part II, Column 1, by
Part I, Column 5 Total
3. Multiply Part I, Column 9 Total, by
Part II, Column 2 Percentage
4. Tax Deemed Paid
(Multiply Part II, column 3, by 80%.
Enter the result here and include on the line of
Schedule B, Part I, column 3 that corresponds with the
line with “951A” in column 2 of Schedule A.)
Form 1118 (Rev. 12-2020)
Form 1118 (Rev. 12-2020) Page 5
Schedule E Tax Deemed Paid With Respect to Previously Taxed
Earnings and Profits (PTEP) by Domestic Corporation Filing the
Return
(Section 960(b))
Part I—Tax Deemed Paid by Domestic Corporation
Use this part to report the tax deemed paid by the domestic
corporation with respect to distributions of PTEP from first-tier
foreign corporations under section 960(b). For each line in
Schedule E, Part I, include the column 11 amount in column 3
of the line in Schedule B, Part I that corresponds with the
identifying number specified in column 1 of Schedule A and
that also corresponds with the identifying number specified in

column 1b of this Schedule E, Part I (see instructions).
1a. Name of
Distributing Foreign
Corporation
1b. EIN or
Reference ID
Number of the
Foreign
Corporation
(see
instructions)
2. Tax Year End
(Year/Month)
(see
instructions)
3. Country of
Incorporation
(enter country
code—
see
instructions)
4. Functional
Currency of the

Distributing
Foreign
Corporation
5. PTEP Group
(enter code)
6. Annual PTEP
account
(enter year)
7. Total amount of
PTEP in the
PTEP Group
8. Total amount of
the PTEP group
taxes with respect
to PTEP group
9. Distribution from
the PTEP Group
10. Divide column 9
by column 7
11. Foreign income
taxes properly
attributable to PTEP
and not previously
deemed paid

(multiply column 8
by column 10)
. . . . . . . . . . . . . . . . . . . . ▶
Part II—Tax Deemed Paid by First- and Lower-Tier Foreign
Corporations
Use this part to report the tax deemed paid by a foreign
corporation with respect to distributions of PTEP from lower-
tier foreign corporations under section 960(b) that relate to
distributions reported in Part I (see instructions).
1a. Name of Distributing Foreign Corporation
1b. EIN or
Reference ID
Number of the
Foreign
Corporation
(see
instructions)
2. Tax Year End
(Year/Month)
(see
instructions)
3. Country of
Incorporation
(enter country

code—see
instructions)
4a. Name of Recipient
Foreign Corporation
4b. EIN or
Reference ID
Number of the
Foreign
Corporation
(see
instructions)
5. Tax Year End
(Year/Month)
(see
instructions)
6. Country of
Incorporation
(enter country
code—see
instructions)
7. Functional Currency of the
Distributing Foreign
Corporation
8. PTEP Group (enter code)

9. Annual PTEP account
(enter year)
10. Total Amount of
PTEP in the PTEP
Group
11. Total Amount of the
PTEP group taxes with
respect to PTEP group
12. PTEP Distributed
13. Divide column 12 by
column 10
14. Foreign income taxes
properly attributable to PTEP
and not previously deemed
paid (multiply column 11 by
column 13)
Form 1118 (Rev. 12-2020)
Form 1118 (Rev. 12-2020) Page 6
Schedule F-1 Tax Deemed Paid by Domestic Corporation Filing
Return—Pre-2018 Tax Years of Foreign Corporations
corporation with respect to dividends from a first-tier foreign
corporation under section 902(a), and

deemed inclusions of earnings from a first- or lower-tier foreign
corporation under section 960(a). Report all amounts in U.S.
dollars unless otherwise
specified.
IMPORTANT: Applicable to dividends or inclusions from
tax years of foreign corporations beginning on or before
December 31, 2017.
If taxpayer does not have such a dividend or inclusion, do not
complete Schedule F-1 (see instructions).
Part I—Dividends and Deemed Inclusions From Post-1986
Undistributed Earnings
For each line in Schedule F-1, Part I, include the column 12
amount in column 3 of the line in Schedule B, Part I that
corresponds with the identifying number specified in column 1
of Schedule A and that also corresponds with the identifying
number specified in either column 1b or 1c of this Schedule F-
1, Part I (see instructions).
(identify DISCs and former DISCs)
1b. EIN (if any)
of the
Foreign
Corporation
1c. Reference ID
Number
(see instructions)
2. Tax Year End
(Year/Month)

(see instructions)
3. Country of
Incorporation
(enter country
code—see
instructions)
4. Post-1986
(in functional currency)
(attach schedule)
5. Opening Balance
in Post-1986 Foreign
Income Taxes
6. Foreign Taxes Paid and Deemed
Paid for Tax Year Indicated
(a) Taxes Paid
(b) Taxes Deemed Paid
(see instructions)
7. Post-1986 Foreign
Income Taxes
(add columns 5, 6(a), and 6(b))
8. Dividends and Deemed Inclusions

(a) Functional
Currency (b) U.S. Dollars
9. Divide Column 8(a)
by Column 4
10. Multiply Column 7
by Column 9
11. Section 960(c) Limitation
12. Tax Deemed Paid
(subtract column 11
from column 10)
. . . . . . . . . . . . . . . . ▶
Form 1118 (Rev. 12-2020)
Form 1118 (Rev. 12-2020) Page 7
Schedule F-1 Tax Deemed Paid by Domestic Corporation Filing
Return—Pre-2018 Tax Years of Foreign Corporations
(continued)
December 31, 2017.
If taxpayer does not have such a dividend or inclusion, do not
complete Schedule F-1 (see instructions).
Part II—Dividends Paid Out of Pre-1987 Accumulated Profits
For each line in Schedule F-1, Part II, include the column 8(b)
corresponds with the identifying number specified in column

1 of Schedule A and that also corresponds with the identifying
1b. EIN (if any)
of the
Foreign Corporation
1c. Reference ID
Number
(see instructions)
2. Tax Year End
(Year/Month)
(see instructions)
3. Country of Incorporation
(enter country code—
see instructions)
4. Accumulated Profits
for Tax Year Indicated
(in functional currency computed
under section 902) (attach schedule)
5. Foreign Taxes Paid and Deemed
Paid on Earnings and Profits (E&P)

(see instructions)
6. Dividends Paid
by Column 4
8. Tax Deemed Paid (see instructions)
Total (add amounts in column 8b) . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . ▶
Part III—Deemed Inclusions From Pre-1987 Earnings and
Profits
For each line in Schedule F-1, Part III, include the column 8
1b. EIN (if any)
of the
Foreign Corporation

1c. Reference ID
Number
(see instructions)
2. Tax Year End
(Year/Month)
(see instructions)
3. Country of Incorporation
see instructions)
4. E&P for Tax Year Indicated
(in functional currency
translated from U.S. dollars, computed under
section 964) (attach schedule)
5. Foreign Taxes Paid and
Deemed Paid for Tax Year Indicated
(see instructions)
6. Deemed Inclusions
by Column 4
8. Tax Deemed Paid
(multiply column 5 by column 7)

Total (add amounts in column 8) . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . ▶
Form 1118 (Rev. 12-2020)
Form 1118 (Rev. 12-2020) Page 8
Schedule F-2 Tax Deemed Paid by First- and Second-Tier
Foreign Corporations Under Section 902(b)—Pre-2018 Tax
Years of Foreign
Corporations
Use Part I to compute the tax deemed paid by a first-tier foreign
corporation with respect to dividends from a second-tier foreign
corporation. Use Part II to
compute the tax deemed paid by a second-tier foreign
corporation with respect to dividends from a third-tier foreign
corporation. Report all amounts in U.S.
dollars unless otherwise specified.
IMPORTANT: Applicable to dividends from tax years of
foreign corporations beginning on or before December 31, 2017.
If taxpayer does not have such a dividend, do not complete
Schedule F-2 (see instructions).
Part I—Tax Deemed Paid by First-Tier Foreign Corporations
Section A—Dividends Paid Out of Post-1986 Undistributed
Earnings (Include the column 10 results in Schedule F-1, Part I,
column 6(b).)
1a. Name of Second-Tier Foreign Corporation
and Its Related First-Tier Foreign Corporation

1b. EIN (if any)
of the Second-Tier
Foreign Corporation
1c. Reference ID
Number
(see instructions)
2. Tax Year End
(Year/Month)
(see instructions)
3. Country of
Incorporation
see instructions)
(in functional currency—
see instructions)
5. Opening Balance
Post-1986 Foreign
Income Taxes
6. Foreign Taxes Paid and Deemed Paid for Tax Year Indicated
(a) Taxes Paid

(see instructions)
Income Taxes
8. Dividends Paid (in functional currency)
(a) of Second-Tier Corporation (b) of First-Tier Corporation
by Column 4
10. Tax Deemed Paid
(multiply column 7
by column 9)
Section B—Dividends Paid Out of Pre-1987 Accumulated
Profits (Include the column 8(b) results in Schedule F-1, Part I,
column 6(b).)
1a. Name of Second-Tier Foreign Corporation
and Its Related First-Tier Foreign Corporation
1b. EIN (if any)
of the Second-Tier
Foreign Corporation
1c. Reference ID
Number
(see instructions)

2. Tax Year End
(Year/Month)
(see instructions)
3. Country of
Incorporation
see instructions)
attach schedule)
see instructions)
6. Dividends Paid
(a) of Second-Tier Corporation (b) of First-Tier Corporation
by Column 4
8. Tax Deemed Paid
(see instructions)
(a) Functional Currency

of Second-Tier Corporation
(b) U.S. Dollars
Form 1118 (Rev. 12-2020)
Form 1118 (Rev. 12-2020) Page 9
Schedule F-2 Tax Deemed Paid by First- and Second-Tier
Years of Foreign
Corporations (continued)
Part II—Dividends Deemed Paid by Second-Tier Foreign
Corporations
Earnings (In general, include the column 10 results in Section
A, column 6(b), of Part I. However, see instructions for
Schedule F-1, Part I, column 6(b), for an exception.)
1a. Name of Third-Tier Foreign Corporation
and Its Related Second-Tier Foreign Corporation
1b. EIN (if any)
of the Third-Tier
Foreign Corporation

1c. Reference ID
Number
(see instructions)
2. Tax Year End
(Year/Month)
(see instructions)
3. Country of
Incorporation
see instructions)
4. Post-1986
attach schedule)
5. Opening Balance in
Post-1986 Foreign
Income Taxes
(a) Taxes Paid
(b) Taxes Deemed Paid (from
Schedule F-3, Part I, column 10)
Income Taxes

8. Dividends Paid
(a) of Third-Tier Corporation (b) of Second-Tier Corporation
by Column 4
10. Tax Deemed Paid
(multiply column 7
by column 9)
Profits (In general, include the column 8(b) results in Section
Schedule F-1, Part I, column 6(b) for an exception.)
1a. Name of Third-Tier Foreign Corporation
and Its Related Second-Tier Foreign Corporation
1b. EIN (if any)
of the Third-Tier
Foreign Corporation
1c. Reference ID
Number
(see instructions)
2. Tax Year End

(Year/Month)
(see instructions)
3. Country of
Incorporation
see instructions)
attach schedule)
see instructions)
6. Dividends Paid
(a) of Third-Tier Corporation (b) of Second-Tier Corporation
by Column 4
8. Tax Deemed Paid
(see instructions)
of Third-Tier Corporation

(b) U.S. Dollars
Form 1118 (Rev. 12-2020)
Form 1118 (Rev. 12-2020) Page 10
Schedule F-3 Tax Deemed Paid by Certain Third-, Fourth-, and
Fifth-Tier Foreign Corporations Under Section 902(b)—Pre-
2018 Tax Years of
Foreign Corporations
Use this schedule to report taxes deemed paid with respect to
dividends from eligible post-1986 undistributed earnings of
fourth-, fifth-, and sixth-tier
controlled foreign corporations. Report all amounts in U.S.
Part I—Tax Deemed Paid by Third-Tier Foreign Corporations
(In general, include the column 10 results in Schedule F-2, Part
II, Section A, column 6(b). However, see
instructions for Schedule F-1, Part I, column 6(b), for an
exception.)
1a. Name of Fourth-Tier Foreign Corporation
and Its Related Third-Tier Foreign Corporation
1b. EIN (if any)
of the Fourth-Tier

Foreign Corporation
1c. Reference ID
Number
(see instructions)
2. Tax Year End
(Year/Month)
(see instructions)
3. Country of
Incorporation
see instructions)
4. Post-1986
attach schedule)
Post-1986 Foreign
Income Taxes
(a) Taxes Paid
(from Part II, column 10)

Income Taxes
8. Dividends Paid
(a) of Fourth-Tier CFC (b) of Third-Tier CFC
by Column 4
10. Tax Deemed Paid
(multiply column 7
by column 9)
Form 1118 (Rev. 12-2020)
Form 1118 (Rev. 12-2020) Page 11
Schedule F-3 Tax Deemed Paid by Certain Third-, Fourth-, and
Fifth-Tier Foreign Corporations Under Section 902(b)—Pre-
2018 Tax Years of
Foreign Corporations (continued)
Part II—Tax Deemed Paid by Fourth-Tier Foreign Corporations

(In general, include the column 10 results in column 6(b) of
Part I. However, see instructions for Schedule F-1,
Part I, column 6(b), for an exception.)
1a. Name of Fifth-Tier Foreign Corporation
and Its Related Fourth-Tier Foreign Corporation
1b. EIN (if any)
of the Fifth-Tier
Foreign Corporation
1c. Reference ID
Number
(see instructions)
2. Tax Year End
(Year/Month)
(see instructions)
3. Country of
Incorporation
see instructions)
4. Post-1986
attach schedule)
Post-1986 Foreign

Income Taxes
(a) Taxes Paid
(from Part III, column 10)
Income Taxes
8. Dividends Paid
(a) of Fifth-Tier CFC (b) of Fourth-Tier CFC
by Column 4
10. Tax Deemed Paid
(multiply column 7
by column 9)
Part III—Tax Deemed Paid by Fifth-Tier Foreign Corporations
Part II, above. However, see instructions for Schedule
F-1, Part I, column 6(b), for an exception.)
1a. Name of Sixth-Tier Foreign Corporation
and Its Related Fifth-Tier Foreign Corporation

1b. EIN (if any)
of the Sixth-Tier
Foreign Corporation
1c. Reference ID
Number
(see instructions)
2. Tax Year End
(Year/Month)
(see instructions)
3. Country of
Incorporation
see instructions)
4. Post-1986
attach schedule)
Post-1986 Foreign
Income Taxes
6. Foreign Taxes Paid

Income Taxes
(add columns 5 and 6)
8. Dividends Paid
(a) of Sixth-Tier CFC (b) of Fifth-Tier CFC
by Column 4
10. Tax Deemed Paid
(multiply column 7
by column 9)
Form 1118 (Rev. 12-2020)
Form 1118 (Rev. 12-2020) Page 12
Schedule G Reductions of Taxes Paid, Accrued, or Deemed Paid
Part I—Reduction Amounts
A Reduction of Taxes Under Section 901(e)—Attach separate
schedule . . . . . . . . . . . . . . . . . . . . . . . . .
B Reduction of Foreign Oil and Gas Taxes—Enter amount from
Schedule I, Part II, line 4 . . . . . . . . . . . . . . . . . . .
C

Reduction of Taxes Due to International Boycott Provisions—
Enter appropriate portion from Schedule C (Form 5713) (see
instructions).
Important: Enter only “specifically attributable taxes” here . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
D Reduction of Taxes for Section 6038(c) Penalty—Attach
separate schedule . . . . . . . . . . . . . . . . . . . . . . .
E Taxes suspended under section 909 . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
F
Other Reductions of Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . .
1. Enter code—see instructions ▶
2. If more than one code is entered on line F1 or if code OTH is
entered on line F1, attach schedule (see instructions).
Total (add lines A through F). Enter here and on Schedule B,
Part II, line 3 . . . . . . . . . . . . . . . . . . . . . . . . . ▶
Part II—Other Information
G Check this box if, during the tax year, the corporation paid or
accrued any foreign tax that was disqualified for credit under
section 901(m) . . . . . . . . . ▶
H Check this box if, during the tax year, the corporation paid or
section 901(j), (k), or (l) . . . . . . . ▶
Form 1118 (Rev. 12-2020)

Form 1118 (Rev. 12-2020) Page 13
Schedule H Apportionment of Certain Deductions (Complete
only once for all categories of income.)
Part I—Research and Experimental Deductions
(a) Sales Method
Product Line #1 (SIC Code: )
(i) Gross Sales
(ii) R&E
Deductions
(iii) Gross Sales
(iv) R&E
Deductions
(b) Gross Income Method—Check method used: Option 1
Option 2
(v) Gross Income
(vi) R&E
Deductions

(vii) Gross Income
(viii) R&E
Deductions
(c) Total R&E
Deductions
(enter the sum of all
amounts entered in all
applicable “R&E
Deductions” columns)
1 Totals (see instructions)
2 Total to be apportioned
3
Apportionment among
statutory groupings
(see instructions):
a Enter Code
(1) Section 245A dividend
(2) Other . . . . .
(3) Total line a . . .
b Enter Code
(2) Other . . . . .
(3) Total line b . . .
c Enter Code

(2) Other . . . . .
(3) Total line c . . .
d Enter Code
(2) Other . . . . .
(3) Total line d . . .
e Enter Code
(2) Other . . . . .
(3) Total line e . . .
f Enter Code
(2) Other . . . . .
(3) Total line f . . .
4
Total foreign (add lines
3a(3), 3b(3), 3c(3), 3d(3),
3e(3), and 3f(3)) . . ▶
Important: See Computer-Generated Schedule H in instructions.
Form 1118 (Rev. 12-2020)
Form 1118 (Rev. 12-2020) Page 14
Schedule H Apportionment of Certain Deductions (Complete
only once for all categories of income.) (continued)

Part II—Interest Deductions, All Other Deductions, and Total
Deductions
(a) Average Value of Assets—
Check method used:
Tax book value
Alternative tax book value
(i) Nonfinancial
Corporations
(ii) Financial
Corporations
(b) Interest Deductions
(iii) Nonfinancial
Corporations
(iv) Financial
Corporations
(c) All Other
Deductions
(attach schedule)
(see instructions)
(d) Totals
(add the
corresponding
amounts from
column (c), Part I;

columns (b)(iii) and
(b)(iv), Part II; and
column (c), Part II)
Additional note:
Be sure to also enter
the totals from lines
3a(2), 3b(2), 3c(2),
3d(2), 3e(2), and 3f(2)
below in column 15
of the corresponding
Schedule A.
1a Totals (see instructions) . . . . . . . . . . . . .
b
Amounts specifically allocable under Temporary Regulations
section 1.861-10T(e) . . . . . . . . . . . . . .
c Other specific allocations under Temporary Regulations
section 1.861-10T
d Assets excluded from apportionment formula . . . . . .
2
Total to be apportioned (subtract the sum of lines 1b, 1c, and
1d from line 1a) . . . . . . . . . . . . . . . .
3 Apportionment among statutory groupings (see instructions):
a Enter Code

(1) Section 245A dividend . . . . . . . . . . . .
(2) Other . . . . . . . . . . . . . . . . . .
(3) Total line a . . . . . . . . . . . . . . . .
b Enter Code
(2) Other . . . . . . . . . . . . . . . . . .
(3) Total line b . . . . . . . . . . . . . . . .
c Enter Code
(2) Other . . . . . . . . . . . . . . . . . .
(3) Total line c . . . . . . . . . . . . . . . .
d Enter Code
(2) Other . . . . . . . . . . . . . . . . . .
(3) Total line d . . . . . . . . . . . . . . . .
e Enter Code
(2) Other . . . . . . . . . . . . . . . . . .
(3) Total line e . . . . . . . . . . . . . . . .
f Enter Code
(2) Other . . . . . . . . . . . . . . . . . .
(3) Total line f . . . . . . . . . . . . . . . .
4 Total foreign (add lines 3a(3), 3b(3), 3c(3), 3d(3), 3e(3), and
3f(3)) ▶
Section 904(b)(4) Adjustments
5

Expenses Allocated and Apportioned to Foreign Source Section
245A Dividend. Enter the sum of lines 3a(1), 3b(1), 3c(1),
3d(1), 3e(1), and 3f(1). Include the
column (d) result as a negative amount on Schedule B, Part II,
line 8b . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Enter expenses allocated and apportioned to U.S. source
section 245A dividend. Include the column (d) result as a
negative amount on Schedule B, Part II, line 8b
Form 1118 (Rev. 12-2020)
Version A, Cycle 9
INTERNAL USE ONLY
DRAFT AS OF
November 4, 2020
Form 1118 (Rev. December 2020)
SE:W:CAR:MP
Form 1118
(Rev. December 2020)
Rev. December 2020. Cat. No. 10900F
Department of the Treasury
Internal Revenue Service
▶ Attach to the corporation’s tax return.▶ Go
to www.irs.gov/Form1118 for instructions and the latest
information.
OMB No. 1545-0123
Attachment
Sequence No. 118
Attachment Sequence No. 118. For Paperwork Reduction Act
Notice, see separate instructions.

Use a separate Form 1118 for each applicable category of
income (see instructions).
a
Separate Category (Enter code—see instructions.) ▶
b
If code 901j is entered on line a, enter the country code for the
sanctioned country (see instructions) ▶
c
If one of the RBT codes is entered on line a, enter the country
code for the treaty country (see instructions) ▶
Schedule A
Income or (Loss) Before Adjustments (Report all amounts in
U.S. dollars. See Specific Instructions.)
1. EIN or Reference IDNumber(see instructions)*
2. Foreign Country or
U.S. Possession(enter two-letter code—usea separate line for
each)(see instructions)
Gross Income or (Loss) From Sources Outside the United States
3. Inclusions Under Sections 951(a)(1) and 951A(see
instructions)
4. Dividends(see instructions)
5. Interest
1. E I N or Reference I D Number (see instructions)*. *For
section 863(b) income, N O L s, income from R I C s, high-
taxed income, section 965, and section 951A, use a single line
(see instructions).
2. Foreign Country or U.S. Possession (enter two-letter code—
use a separate line for each) (see instructions).
(a) Exclude Gross-Up
Gross Income or (Loss) From Sources Outside the United
States. 3. Inclusions Under Sections 951(a)(1) and 951A (see
instructions). (a) Exclude Gross-Up.
(b) Gross-Up (section 78)
States. 3. Inclusions Under Sections 951(a)(1) and 951A (see
instructions). (b) Gross-Up (section 78).

(a) Exclude Gross-Up
States. 4. Dividends (see instructions). (a) Exclude Gross-Up.
(b) Gross-Up (section 78)
States. 4. Dividends (see instructions). (b) Gross-Up (section
78).
States. 5. Interest.
A
B
C
Totals (add lines A through C) ▶
6. Gross Rents, Royalties,and License Fees
7. Sales
8. Gross Income From Performance of Services
9. Section 986(c) Gain
10. Section 987 Gain
11. Section 988 Gain
12. Other(attach schedule)
A
B
C
Totals
13. Total(add columns 3(a)through 12)
14. Allocable Deductions
(a) DividendsReceived Deduction(see instructions)
(b) Deduction Allowed Under Section 250(a)(1)(A)—Foreign
Derived Intangible Income
(c) Deduction Allowed Under Section 250(a)(1)(B)—Global
Intangible Low-Taxed Income
Rental, Royalty, and Licensing Expenses
(d) Depreciation, Depletion,and Amortization
(e) Other AllocableExpenses
(f) Expenses Allocableto Sales Income
13. Total (add columns 3(a) through 12).

14. Allocable Deductions. (a) Dividends Received Deduction
(see instructions).
14. Allocable Deductions. (b) Deduction Allowed Under Section
250(a)(1)(A)—Foreign Derived Intangible Income.
14. Allocable Deductions. (c) Deduction Allowed Under Section
250(a)(1)(B)—Global Intangible Low-Taxed Income.
14. Allocable Deductions. Rental, Royalty, and Licensing
Expenses. (d) Depreciation, Depletion, and Amortization.
14. Allocable Deductions. Rental, Royalty, and Licensing
Expenses. (e) Other Allocable Expenses.
14. Allocable Deductions. (f) Expenses Allocable to Sales
Income.
A
B
C
Totals
14. Allocable Deductions (continued)
(g) Expenses Allocableto Gross Income From Performance of
Services
(h) Other AllocableDeductions (attach schedule) (see
instructions)
(i) Total Allocable Deductions(add columns 14(a)through 14(h))
15. ApportionedShare of Deductions(enter amount
fromapplicable line of Schedule H, Part II, column (d))
16. Net OperatingLoss Deduction
17. Total Deductions(add columns 14(i)through 16)
18. Total Income or (Loss)Before Adjustments(subtract column
17from column 13)
14. Allocable Deductions (continued). (g) Expenses Allocable
to Gross Income From Performance of Services.
14. Allocable Deductions (continued). (h) Other Allocable
Deductions.
14. Allocable Deductions (continued). (i) Total Allocable
Deductions (add columns 14(a) through 14(h)).
15. Apportioned Share of Deductions (enter amount from
applicable line of Schedule H, Part II, column (d)).

16. Net Operating Loss Deduction.
17. Total Deductions (add columns 14(i) through 16).
18. Total Income or (Loss) Before Adjustments (subtract
column 17 from column 13).
A
B
C
Totals
* For section 863(b) income, NOLs, income from RICs, high-
taxed income, section 965, section 951A, and reattribution of
income by reason of disregarded payments, use a single line
(see instructions). Also, for reporting branches that are QBUs,
use a separate line for each such branch.
For Paperwork Reduction Act Notice, see separate instructions.
Cat. No. 10900F
Form 1118 (Rev. 12-2020)
Form 1118 (Rev. 12-2020)
Page 2
Schedule B
Foreign Tax Credit (Report all foreign tax amounts in U.S.
dollars.)
Part I—Foreign Taxes Paid, Accrued, and Deemed Paid (see
instructions)
1. Credit Is Claimed for Taxes (check one):
(a) Dividends
(b) Distributions ofPreviously Taxed Earnings and Profits
(c) Branch Remittances
(d) Interest
(e) Rents, Royalties,and License Fees
(f) Other
Date Paid
1. Credit is Claimed for Taxes: Paid. Date Paid.
Date Accrued
1. Credit is Claimed for Taxes: Accrued. Date Accrued.

amounts in foreign currency and conversion rate(s) used). Tax
Withheld at Source on: (a) Dividends.
Withheld at Source on: (b) Distributions of Previously Taxed
Income Earnings and Profits.
Withheld at Source on: (c) Branch Remittances.
Withheld at Source on: (d) Interest.
Withheld at Source on: (e) Rents, Royalties, and License Fees.
Withheld at Source on: (f) Other.
A
B
C
Totals (add lines A through C) ▶
(g) Sales
(h) Services Income
(i) Other
(j) Total Foreign Taxes Paid or Accrued(add columns 2(a)
through 2(i))
3. Tax Deemed Paid(see instructions)
amounts in foreign currency and conversion rate(s) used). Other
Foreign Taxes Paid or Accrued on: (g) Sales.

Foreign Taxes Paid or Accrued on: (h) Services Income.
Foreign Taxes Paid or Accrued on: (i) Other.
amounts in foreign currency and conversion rate(s) used). (j)
Total Foreign Taxes Paid or Accrued (add columns 2(a) through
2(i)).
3. Tax Deemed Paid (see instructions).
A
B
C
Totals
Part II—Separate Foreign Tax Credit (Complete a separate Part
II for each applicable category of income.)
1
a
Total foreign taxes paid or accrued (total from Part I, column
2(j))
b
Foreign taxes paid or accrued by the corporation during prior
tax years that were suspended due to the rules of section 909
and for which the related income is taken into account by the
corporation during the current tax year (see instructions)
2
Total taxes deemed paid (total from Part I, column 3)
3
Reductions of taxes paid, accrued, or deemed paid (enter total
from Schedule G)
( )
4
Taxes reclassified under high-tax kickout
5
Enter the sum of any carryover of foreign taxes (from Schedule

K, line 3, column (xiv), and from Schedule I, Part III, line 3)
plus any carrybacks to the current tax year
6
Total foreign taxes (combine lines 1a through 5)
7
Enter the amount from the applicable column of Schedule J,
Part I, line 11 (see instructions). If Schedule J is not required to
be completed, enter the result from the “Totals” line of column
18 of the applicable Schedule A
8
a
Total taxable income from all sources (enter taxable income
from the corporation’s tax return)
b
Adjustments to line 8a (see instructions)
c
Subtract line 8b from line 8a
9
Divide line 7 by line 8c. Enter the resulting fraction as a
decimal (see instructions). If line 7 is greater than line 8c, enter
1
10
Total U.S. income tax against which credit is allowed (regular
tax liability (see section 26(b)) minus any American Samoa
economic development credit)
11
Multiply line 9 by line 10
12
Increase in limitation (section 960(c))
13
Credit limitation (add lines 11 and 12) (see instructions)
14
Separate foreign tax credit (enter the smaller of line 6 or line
13). Enter here and on the appropriate line of Part III ▶
Form 1118 (Rev. 12-2020)

Form 1118 (Rev. 12-2020)
Page 3
Schedule B
Foreign Tax Credit (continued) (Report all foreign tax amounts
in U.S. dollars.)
Part III—Summary of Separate Credits (Enter amounts from
Part II, line 14 for each applicable category of income. Do not
include taxes paid to sanctioned countries.)
1
Credit for taxes on section 951A category income
2
Credit for taxes on foreign branch category income
3
Credit for taxes on passive category income
4
Credit for taxes on general category income
5
Credit for taxes on section 901(j) category income (combine all
such credits on this line)
6
Credit for taxes on income re-sourced by treaty (combine all
such credits on this line)
7
Total (add lines 1 through 6)
8
Reduction in credit for international boycott operations (see
instructions)
9
Total foreign tax credit (subtract line 8 from line 7). Enter here
and on the appropriate line of the corporation’s tax return
▶
Schedule C
Tax Deemed Paid With Respect to Section 951(a)(1) Inclusions
by Domestic Corporation Filing Return (Section 960(a))
Use this schedule to report the tax deemed paid by the
corporation with respect to section 951(a)(1) inclusions of

earnings from foreign corporations under section 960(a). For
each line in Schedule C, include the column 10 amount in
column 3 of the line in Schedule B, Part I that corresponds with
the identifying number specified in column 1 of Schedule A and
that also corresponds with the identifying number entered in
column 1b of this Schedule C (see instructions).
1b. EIN or Reference ID Number of the Foreign Corporation(see
instructions)
1c. QBU Reference ID (if applicable)
2. Tax Year End (Year/Month) (see instructions)
3. Country of Incorporation (enter country code—
see instructions)
4. Functional Currency of Foreign Corporation (enter code -
see instructions)
5. Subpart F Income Group
(a) Reg. sec. 1.960-1(d)(2)(ii)(B)(2)(enter code)
(b) Reg. sec. 1.904-4(c)(3)(i)-(iv) (enter code)
(c) Unit
1a. Name of Foreign Corporation.
1b. E I N or Reference I D Number of the Foreign Corporation
(see instructions).
1c. Q B U Reference I D (if applicable).
2. Tax Year End (Year/Month) (see instructions).
3. Country of Incorporation (enter country code—see
instructions).
4. Functional Currency of Foreign Corporation (enter code - see
instructions).
5. Subpart F Income Group. (a) Reg. sec. 1.960-1(d)(2)(i
i)(B)(2)(enter code).
5. Subpart F Income Group. (b) Reg. sec. 1.904-4(c)(3)(i)-(i v)
(enter code).
5. Subpart F Income Group. (c) Unit.
6. Total Net Income in Subpart F Income Group (in functional
currency of foreign corporation)
7. Total Current Year Taxes in Subpart F Income

Group (in U.S. Dollars)
Group
(b) U.S. Dollars
9. Divide column 8(a) by column 6
10. Tax Deemed Paid (multiply column 7 by column 9)
6. Total Net Income in Subpart F Income Group (in functional
currency of foreign corporation).
7. Total Current Year Taxes in Subpart F Income Group (in U.S.
Dollars).
Group. (a) Functional Currency.
Group. (b) U.S. Dollars.
9. Divide column 8(a) by column 6.
10. Tax Deemed Paid (multiply column 7 by column 9).
Total (add amounts in column 10) ▶
Form 1118 (Rev. 12-2020)
Form 1118 (Rev. 12-2020)
Page 4
Schedule D
Tax Deemed Paid With Respect to Section 951A Income by
Domestic Corporation Filing the Return (Section 960(d))
corporation with respect to section 951A inclusions of earnings
from foreign corporations under section 960(d).
Part I—Foreign Corporation’s Tested Income and Foreign Taxes
1b. EIN or Reference IDNumber of theForeign Corporation(see
instructions)
2. Tax Year End(Year/Month)(see instructions)
see instructions)
4. Functional Currency of Foreign Corporation (enter code)
5. Pro rata share of CFC’s tested income from applicable Form

8992 schedule (see instructions)
6. CFC’s tested income from applicable Form 8992 schedule
(see instructions)
7. Divide column 5 by column 6
8. CFC’s tested foreign income taxes from Schedule Q
(Form 5471) (see instructions)
9. Pro rata share of tested foreign income taxes paid or accrued
by CFC (Multiply amount in column 7 by amount in column 8)
Entry 5. 5.
Entry 5. 5.
Entry 5. 5.
Entry 5. 5.
Part II—Foreign Income Tax Deemed Paid
1. Global Intangible Low-Taxed Income(Section 951A
Inclusion)
2. Inclusion Percentage.Divide Part II, Column 1, byPart I,
Column 5 Total
3. Multiply Part I, Column 9 Total, byPart II, Column 2
Percentage
4. Tax Deemed Paid(Multiply Part II, column 3, by 80%.Enter
the result here and include on the line of Schedule B, Part I,
column 3 that corresponds with the line with “951A” in column
2 of Schedule A.)
Form 1118 (Rev. 12-2020)
Form 1118 (Rev. 12-2020)
Page 5
Schedule E
Tax Deemed Paid With Respect to Previously Taxed Earnings
and Profits (PTEP) by Domestic Corporation Filing the Return
(Section 960(b))
Part I—Tax Deemed Paid by Domestic Corporation
Use this part to report the tax deemed paid by the domestic
corporation with respect to distributions of PTEP from first-tier
foreign corporations under section 960(b). For each line in

Schedule E, Part I, include the column 11 amount in column 3
of the line in Schedule B, Part I that corresponds with the
identifying number specified in column 1 of Schedule A and
that also corresponds with the identifying number specified in
column 1b of this Schedule E, Part I (see instructions).
1b. EIN or Reference IDNumber of theForeign Corporation(see
instructions)
see instructions)
4. Functional Currency of the Distributing Foreign Corporation
6. Annual PTEP account (enter year)
7. Total amount of PTEP in the PTEP Group
8. Total amount of the PTEP group taxes with respect to PTEP
group
9. Distribution from the PTEP Group
11. Foreign income taxes properly attributable to PTEP and not
previously deemed paid (multiply column 8 by column 10)
Part II—Tax Deemed Paid by First- and Lower-Tier Foreign
Corporations
Use this part to report the tax deemed paid by a foreign
corporation with respect to distributions of PTEP from lower -
tier foreign corporations under section 960(b) that relate to
distributions reported in Part I (see instructions).
1b. EIN or Reference ID Number of the ForeignCorporation(see
instructions)
see instructions)
4a. Name of RecipientForeign Corporation
4b. EIN or Reference ID Number of the ForeignCorporation(see

instructions)
instructions)
7. Functional Currency of the Distributing Foreign Corporation
9. Annual PTEP account (enter year)
10. Total Amount of PTEP in the PTEP Group
11. Total Amount of the PTEP group taxes with respect to
PTEP group
12. PTEP Distributed
14. Foreign income taxes properly attributable to PTEP and not
previously deemed paid (multiply column 11 by column 13)
Form 1118 (Rev. 12-2020)
Form 1118 (Rev. 12-2020)
Page 6
Schedule F-1
Tax Deemed Paid by Domestic Corporation Filing Return—Pre-
2018 Tax Years of Foreign Corporations
corporation with respect to dividends from a first-tier foreign
corporation under section 902(a), and deemed inclusions of
earnings from a first- or lower-tier foreign corporation under
section 960(a). Report all amounts in U.S. dollars unless
otherwise specified.
December 31, 2017.If taxpayer does not have such a dividend or
inclusion, do not complete Schedule F-1 (see instructions).
Part I—Dividends and Deemed Inclusions From Post-1986
For each line in Schedule F-1, Part I, include the column 12

1b. EIN (if any)of theForeignCorporation
1c. Reference ID Number(see instructions)
2. Tax Year End (Year/Month)(see instructions)
3. Country of Incorporation(enter countrycode—
see instructions)
4. Post-1986 Undistributed Earnings (in functional
currency)(attach schedule)
5. Opening Balancein Post-1986 Foreign Income Taxes
6. Foreign Taxes Paid and DeemedPaid for Tax Year Indicated
(a) Taxes Paid
(b) Taxes Deemed Paid (see instructions)
1a. Name of Foreign Corporation (identify D I S C's and former
D I S C's).
1b. E I N (if any) of the Foreign Corporation.
1c. Reference I D Number (see instructions).
2. Tax Year End (Year/Month) (see instructions).
instructions).
4. Post-1986 Undistributed Earnings (in functional currency)
(attach schedule).
5. Opening Balance in Post-1986 Foreign Income Taxes.
6. Foreign Taxes Paid and Deemed Paid for Tax Year Indicated.
(a) Taxes Paid.
(b) Taxes Deemed Paid (see instructions).
7. Post-1986 ForeignIncome Taxes(add columns 5, 6(a), and
6(b))
8. Dividends and Deemed Inclusions
(a) FunctionalCurrency
(b) U.S. Dollars
9. Divide Column 8(a)by Column 4
10. Multiply Column 7by Column 9

11. Section 960(c) Limitation
12. Tax Deemed Paid(subtract column 11from column 10)
7. Post-1986 Foreign Income Taxes (add columns 5, 6(a), and
6(b)).
8. Dividends and Deemed Inclusions. (a) Functional Currency.
8. Dividends and Deemed Inclusions. (b) U.S. Dollars.
9. Divide Column 8(a) by Column 4.
10. Multiply Column 7 by Column 9.
11. Section 960(c) Limitation.
12. Tax Deemed Paid (subtract column 11 from column 10).
Form 1118 (Rev. 12-2020)
Form 1118 (Rev. 12-2020)
Page 7
Schedule F-1
Tax Deemed Paid by Domestic Corporation Filing Return—Pre-
2018 Tax Years of Foreign Corporations (continued)
December 31, 2017.If taxpayer does not have such a dividend or
inclusion, do not complete Schedule F-1 (see instructions).
Part II—Dividends Paid Out of Pre-1987 Accumulated Profits
For each line in Schedule F-1, Part II, include the column 8(b)
1b. EIN (if any)of theForeign Corporation
1c. Reference IDNumber(see instructions)
3. Country of Incorporation(enter country code—
see instructions)
4. Accumulated Profitsfor Tax Year Indicated(in functional

currency computed under section 902) (attach schedule)
5. Foreign Taxes Paid and Deemed Paid on Earnings and Profits
(E&P)for Tax Year Indicated(in functional currency)(see
instructions)
6. Dividends Paid
(b) U.S. Dollars
8. Tax Deemed Paid (see instructions)
(b) U.S. Dollars
5. Foreign Taxes Paid and Deemed Paid on Earnings and Profits
(E&P) for Tax Year Indicated (in functional currency) (see
instructions).
6. Dividends Paid. (a) Functional Currency.
6. Dividends Paid. (b) U.S. Dollars.
8. Tax Deemed Paid (see instructions). (a) Functional Currency.
8. Tax Deemed Paid (see instructions). (b) U.S. Dollars.
Total (add amounts in column 8b) ▶
Part III—Deemed Inclusions From Pre-1987 Earnings and
Profits
For each line in Schedule F-1, Part III, include the column 8
corresponds with the identifyi ng number specified in column 1
1b. EIN (if any)of theForeign Corporation
3. Country of Incorporation(enter country code—
see instructions)
4. E&P for Tax Year Indicated(in functional currencytranslated

from U.S. dollars, computed under section 964) (attach
schedule)
5. Foreign Taxes Paid andDeemed Paid for Tax Year
Indicated(see instructions)
6. Deemed Inclusions
(b) U.S. Dollars
8. Tax Deemed Paid(multiply column 5 by column 7)
(see instructions).
6. Deemed Inclusions. (a) Functional Currency.
6. Deemed Inclusions. (b) U.S. Dollars.
Form 1118 (Rev. 12-2020)
Form 1118 (Rev. 12-2020)
Page 8
Schedule F-2
Tax Deemed Paid by First- and Second-Tier Foreign
Corporations Under Section 902(b)—Pre-2018 Tax Years of
Foreign Corporations
Use Part I to compute the tax deemed paid by a first-tier foreign
corporation with respect to dividends from a second-tier foreign
corporation. Use Part II to compute the tax deemed paid by a
second-tier foreign corporation with respect to dividends from a
third-tier foreign corporation. Report all amounts in U.S.
foreign corporations beginning on or before December 31,
2017.If taxpayer does not have such a dividend, do not complete
Part I—Tax Deemed Paid by First-Tier Foreign Corporations
Earnings (Include the column 10 results in Schedule F-1, Part I,

column 6(b).)
1a. Name of Second-Tier Foreign Corporationand Its Related
First-Tier Foreign Corporation
1b. EIN (if any)of the Second-TierForeign Corporation
3. Country ofIncorporation(enter country code—
see instructions)
currency—see instructions)
5. Opening BalancePost-1986 ForeignIncome Taxes
(a) Taxes Paid
(b) Taxes Deemed Paid(see instructions)
6(b))
8. Dividends Paid (in functional currency)
(a) of Second-Tier Corporation
(b) of First-Tier Corporation
10. Tax Deemed Paid(multiply column 7by column 9)
(a) Taxes Paid.
(b) Taxes Deemed Paid (see instructions).
6(b)).
8. Dividends Paid (in functional currency). (a) of Second-Tier
Corporation.
8. Dividends Paid (in functional currency). (b) of First-Tier
Corporation.
Profits (Include the column 8(b) results in Schedule F-1, Part I,
column 6(b).)

1a. Name of Second-Tier Foreign Corporationand Its Related
First-Tier Foreign Corporation
1b. EIN (if any)of the Second-TierForeign Corporation
see instructions)
currency— attach schedule)
5. Foreign Taxes Paid andDeemed Paid for Tax Year Indicated
(in functional currency—see instructions)
6. Dividends Paid(in functional currency)
(a) of Second-Tier Corporation
(b) of First-Tier Corporation
(a) Functional Currencyof Second-Tier Corporation
(b) U.S. Dollars
(in functional currency—see instructions).
6. Dividends Paid (in functional currency). (a) of Second-Tier
Corporation.
6. Dividends Paid (in functional currency). (b) of First-Tier
Corporation.
8. Tax Deemed Paid (see instructions). (a) Functional Currency
of Second-Tier Corporation.
Form 1118 (Rev. 12-2020)
Form 1118 (Rev. 12-2020)
Page 9
Schedule F-2
Tax Deemed Paid by First- and Second-Tier Foreign
Corporations Under Section 902(b)—Pre-2018 Tax Years of
Foreign Corporations (continued)

Part II—Dividends Deemed Paid by Second-Tier Foreign
Corporations
Earnings (In general, include the column 10 results in Section
1a. Name of Third-Tier Foreign Corporationand Its Related
Second-Tier Foreign Corporation
1b. EIN (if any)of the Third-TierForeign Corporation
see instructions)
4. Post-1986Undistributed Earnings(in functional currency—
attach schedule)
5. Opening Balance inPost-1986 ForeignIncome Taxes
(a) Taxes Paid
(b) Taxes Deemed Paid (from Schedule F-3, Part I, column 10)
6(b))
(a) of Third-Tier Corporation
(b) of Second-Tier Corporation
(a) Taxes Paid.
(b) Taxes Deemed Paid (from Schedule F-3, Part I, column 10).
6(b)).
8. Dividends Paid (in functional currency). (a) of Third-Tier

Corporation.
8. Dividends Paid (in functional currency). (b) of Second-Tier
Corporation.
Profits (In general, include the column 8(b) results in Section
Schedule F-1, Part I, column 6(b) for an exception.)
1a. Name of Third-Tier Foreign Corporationand Its Related
Second-Tier Foreign Corporation
1b. EIN (if any)of the Third-TierForeign Corporation
see instructions)
currency—attach schedule)
5. Foreign Taxes Paid andDeemed Paid for Tax Year Indicated
(in functional currency—see instructions)
(a) of Third-Tier Corporation
(b) of Second-Tier Corporation
(a) Functional Currencyof Third-Tier Corporation
(b) U.S. Dollars
(in functional currency—see instructions).
6. Dividends Paid (in functional currency). (a) of Third-Tier
Corporation.
6. Dividends Paid (in functional currency). (b) of Second-Tier
Corporation.
8. Tax Deemed Paid (see instructions). (a) Functional Currency
of Third-Tier Corporation.

Form 1118 (Rev. 12-2020)
Form 1118 (Rev. 12-2020)
Page 10
Schedule F-3
Tax Deemed Paid by Certain Third-, Fourth-, and Fifth-Tier
Years of Foreign Corporations
Use this schedule to report taxes deemed paid with respect to
dividends from eligible post-1986 undistributed earnings of
fourth-, fifth-, and sixth-tier controlled foreign
corporations. Report all amounts in U.S. dollars unless
otherwise specified.
Part I—Tax Deemed Paid by Third-Tier Foreign Corporations
(In general, include the column 10 results in Schedule F-2, Part
II, Section A, column 6(b). However, see instructions for
1a. Name of Fourth-Tier Foreign Corporationand Its Related
Third-Tier Foreign Corporation
1b. EIN (if any)of the Fourth-TierForeign Corporation
see instructions)
attach schedule)
(a) Taxes Paid
(b) Taxes Deemed Paid(from Part II, column 10)
6(b))

(a) of Fourth-Tier CFC
(b) of Third-Tier CFC
(a) Taxes Paid.
(b) Taxes Deemed Paid (from Part II, column 10).
6(b)).
8. Dividends Paid (in functional currency). (a) of Fourth-Tier C
F C.
8. Dividends Paid (in functional currency). (b) of Third-Tier C
F C.
Form 1118 (Rev. 12-2020)
Form 1118 (Rev. 12-2020)
Page 11
Schedule F-3
Tax Deemed Paid by Certain Third-, Fourth-, and Fifth-Tier
Years of Foreign Corporations (continued)
Part II—Tax Deemed Paid by Fourth-Tier Foreign Corporations
Part I. However, see instructions for Schedule F-1, Part I,
column 6(b), for an exception.)
1a. Name of Fifth-Tier Foreign Corporationand Its Related
Fourth-Tier Foreign Corporation
1b. EIN (if any)of the Fifth-TierForeign Corporation

see instructions)
attach schedule)
(a) Taxes Paid
(b) Taxes Deemed Paid(from Part III, column 10)
6(b))
(a) of Fifth-Tier CFC
(b) of Fourth-Tier CFC
(a) Taxes Paid.
(b) Taxes Deemed Paid (from Part III, column 10).
6(b)).
8. Dividends Paid (in functional currency). (a) of Fifth-Tier C F
C.
8. Dividends Paid (in functional currency). (b) of Fourth-Tier C
F C.
Part III—Tax Deemed Paid by Fifth-Tier Foreign Corporations
Part II, above. However, see instructions for Schedule F-1, Part
I, column 6(b), for an exception.)
1a. Name of Sixth-Tier Foreign Corporationand Its Related
Fifth-Tier Foreign Corporation
1b. EIN (if any)of the Sixth-TierForeign Corporation

see instructions)
attach schedule)
6. Foreign Taxes Paidfor Tax Year Indicated
7. Post-1986 ForeignIncome Taxes(add columns 5 and 6)
(a) of Sixth-Tier CFC
(b) of Fifth-Tier CFC
6. Foreign Taxes Paid for Tax Year Indicated.
7. Post-1986 Foreign Income Taxes (add columns 5 and 6).
8. Dividends Paid (in functional currency). (a) of Sixth-Tier C F
C.
8. Dividends Paid (in functional currency). (b) of Fifth-Tier C F
C.
Form 1118 (Rev. 12-2020)
Form 1118 (Rev. 12-2020)
Page 12
Schedule G
Reductions of Taxes Paid, Accrued, or Deemed Paid
Part I—Reduction Amounts
A
Reduction of Taxes Under Section 901(e)—Attach separate
schedule
B
Reduction of Foreign Oil and Gas Taxes—Enter amount from
Schedule I, Part II, line 4
C
Reduction of Taxes Due to Internatio nal Boycott Provisions—

Enter appropriate portion from Schedule C (Form 5713) (see
instructions).Important: Enter only “specifically attributable
taxes” here
D
Reduction of Taxes for Section 6038(c) Penalty—Attach
separate schedule
E
Taxes suspended under section 909
F
Other Reductions of Taxes
2. If more than one code is entered on line F1 or if code OTH is
entered on line F1, attach schedule (see instructions).
Total (add lines A through F). Enter here and on Schedule B,
Part II, line 3 ▶
Part II—Other Information
G
Check this box if, during the tax year, the corporation paid or
section 901(m) ▶
H
Check this box if, during the tax year, the corporation paid or
section 901(j), (k), or (l) ▶
Form 1118 (Rev. 12-2020)
Form 1118 (Rev. 12-2020)
Page 13
Schedule H
Apportionment of Certain Deductions (Complete only once for
all categories of income.)
Part I—Research and Experimental Deductions
(a) Sales Method
)
(i) Gross Sales
(ii) R&EDeductions

)
(iii) Gross Sales
(iv) R&E
Deductions
(b) Gross Income Method—Check method used:
)
(v) Gross Income
(vi) R&EDeductions
)
(vii) Gross Income
(viii) R&EDeductions
(c) Total R&E Deductions(enter the sum of all amounts entered
in all applicable “R&E Deductions” columns)
(a) Sales Method. Product Line #1. (i) Gross Sales.
(a) Sales Method. Product Line #1. (ii) R&E Deductions.
(a) Sales Method. Product Line #2. (iii) Gross Sales.
(a) Sales Method. Product Line #2. (iv) R&E Deductions.
(b) Gross Income Method. Product Line #1. (v) Gross Income.
(b) Gross Income Method. Product Line #1. (vi) R&E
Deductions.
(b) Gross Income Method. Product Line #2. (vii) Gross Income.
(b) Gross Income Method. Product Line #2. (viii) R&E
Deductions.
(c) Total R&E Deductions (enter the sum of all amounts entered
in all applicable “R&E Deductions” columns).
1
Totals (see instructions)
2
Total to be apportioned
3
Apportionment among statutory groupings (see instructions):
a
(2) Other

(3) Total line a
b
(2) Other
(3) Total line b
c
(2) Other
(3) Total line c
d
(2) Other
(3) Total line d
e
(2) Other
(3) Total line e
f
(2) Other
(3) Total line f
4
Total foreign (add lines 3a(3), 3b(3), 3c(3), 3d(3), 3e(3), and
3f(3)) ▶
Form 1118 (Rev. 12-2020)
Form 1118 (Rev. 12-2020)
Page 14
Schedule H
Apportionment of Certain Deductions (Complete only once for
all categories of income.) (continued)
Part II—Interest Deductions, All Other Deductions, and Total
Deductions
(a) Average Value of Assets—Check method used:

(i) Nonfinancial
Corporations
(ii) Financial Corporations
(b) Interest Deductions
(iii) Nonfinancial Corporations
(iv) Financial Corporations
(c) All Other Deductions (attach schedule)(see
instructions)
(d) Totals(add the corresponding amounts from
column (c), Part I; columns (b)(iii) and
(b)(iv), Part II; and column (c), Part II)
Additional note:Be sure to also enter the totals from lines3a(2),
3b(2), 3c(2),3d(2), 3e(2), and 3f(2) below in column 15of the
corresponding Schedule A.
(a) Average Value of Assets. (i) Nonfinancial Corporations.
(a) Average Value of Assets. (ii) Financial Corporations.
(b) Interest Deductions. (iii) Nonfinancial Corporations.
(b) Interest Deductions. (iv) Financial Corporations.
(c) All Other Deductions (see instructions).
(d) Totals (add the corresponding amounts from column (c),
Part I; columns (b)(iii) and (b)(iv), Part II; and column (c), Part
II). Additional note: Be sure to also enter the totals from lines
3a(2), 3b(2), 3c(2), 3d(2), 3e(2), and 3f(2) below in column 15
of the corresponding Schedule A.
1a
Totals (see instructions)
b
Amounts specifically allocable under Temporary Regulations
section 1.861-10T(e)
c
Other specific allocations under Temporary Regulations section
1.861-10T
d
Assets excluded from apportionment formula

2
Total to be apportioned (subtract the sum of lines 1b, 1c, and 1d
from line 1a)
3
Apportionment among statutory groupings (see instructions):
a
(2) Other
(3) Total line a
b
(2) Other
(3) Total line b
c
(2) Other
(3) Total line c
d
(2) Other
(3) Total line d
e
(2) Other
(3) Total line e
f
(2) Other
(3) Total line f
4
Total foreign (add lines 3a(3), 3b(3), 3c(3), 3d(3), 3e(3), and
3f(3)) ▶
Section 904(b)(4) Adjustments
5

Expenses Allocated and Apportioned to Foreign Source Section
245A Dividend. Enter the sum of lines 3a(1), 3b(1), 3c(1),
3d(1), 3e(1), and 3f(1). Include the column (d) result as a
negative amount on Schedule B, Part II, line 8b
6
Enter expenses allocated and apportioned to U.S. source section
245A dividend. Include the column (d) result as a negative
amount on Schedule B, Part II, line 8b
Form 1118 (Rev. 12-2020)
f1_1: f1_2: f1_3: f1_4: f1_5: f1_6: f1_7: f1_8: f1_9: f1_10:
f1_11: f1_12: f1_13: f1_14: f1_15: f1_16: f1_17: f1_18: f1_19:
f1_20: f1_21: f1_22: f1_23: f1_24: f1_25: f1_26: f1_27: f1_28:
f1_29: f1_30: f1_31: f1_32: f1_33: f1_34: f1_35: f1_36: f1_37:
f1_38: f1_39: f1_40: f1_41: f1_42: f1_43: f1_44: f1_45: f1_46:
f1_47: f1_48: f1_49: f1_50: f1_51: f1_52: f1_53: f1_54: f1_55:
f1_56: f1_57: f1_58: f1_59: f1_60: f1_61: f1_62: f1_63: f1_64:
f1_65: f1_66: f1_67: f1_68: f1_69: f1_70: f1_71: f1_72: f1_73:
f1_74: f1_75: f1_76: f1_77: f1_78: f1_79: f1_80: f1_81: f1_82:
f1_83: f1_84: f1_85: f1_86: f1_87: f1_88: f1_89: f1_90: f1_91:
f1_92: f1_93: f1_94: f1_95: f1_96: f1_97: f1_98: f1_99:
f1_100: f1_101: f1_102: f1_103: f1_104: f1_105: f1_106:
f1_107: f1_108: f1_109: f1_110: f1_111: f1_112: f1_113:
f1_114: f1_115: f1_116: f1_117: f1_118: f1_119: f1_120: c2_1:
0f2_1: f2_2: f2_3: f2_4: f2_5: f2_6: f2_7: f2_8: f2_9: f2_10:
f2_11: f2_12: f2_13: f2_14: f2_15: f2_16: f2_17: f2_18: f2_19:
f2_20: f2_21: f2_22: f2_23: f2_24: f2_25: f2_26: f2_27: f2_28:
f2_29: f2_30: f2_31: f2_32: f2_33: f2_34: f2_35: f2_36: f2_37:
f2_38: f2_39: f2_40: f2_41: f2_42: f2_43: f2_44: f2_45: f2_46:
f2_47: f2_48: f2_49: f2_50: f2_51: f2_52: f2_53: f2_54: f2_55:
f2_56: f2_57: f2_58: f2_59: f2_60: f2_61: f2_62: f2_63: f2_64:
f2_65: f2_66: f2_67: f2_68: f2_69: f3_1: f3_2: f3_3: f3_4:
f3_5: f3_6: f3_7: f3_8: f3_9: f3_10: f3_11: f3_12: f3_13:
f3_14: f3_15: f3_16: f3_17: f3_18: f3_19: f3_20: f3_21: f3_22:
f3_23: f3_24: f3_25: f3_26: f3_27: f3_28: f3_29: f3_30: f3_31:
f3_32: f3_33: f3_34: f3_35: f3_36: f3_37: f3_38: f3_39: f3_40:

f3_41: f3_42: f3_43: f3_44: f3_45: f3_46: f3_47: f3_48: f3_49:
f3_50: f3_51: f3_52: f3_53: f3_54: f3_55: f3_56: f3_57: f3_58:
f3_59: f3_60: f3_61: f3_62: f3_63: f3_64: f3_65: f3_66: f3_67:
f3_68: f3_69: f3_70: f3_71: f3_72: f3_73: f3_74: f3_75: f3_76:
f3_77: f3_78: f3_79: f3_80: f3_81: f3_82: f3_83: f3_84: f3_85:
f3_86: f3_87: f3_88: f3_89: f3_90: f3_91: f3_92: f3_93: f3_94:
f3_95: f3_96: f3_97: f3_98: f3_99: f3_100: f4_1: f4_2: f4_3:
f4_4: f4_5: f4_6: f4_7: f4_8: f4_9: f4_10: f4_11: f4_12: f4_13:
f4_14: f4_15: f4_16: f4_17: f4_18: f4_19: f4_20: f4_21: f4_22:
f4_23: f4_24: f4_25: f4_26: f4_27: f4_28: f4_29: f4_30: f4_31:
f4_32: f4_33: f4_34: f4_35: f4_36: f4_37: f4_38: f4_39: f4_40:
f4_41: f4_42: f4_43: f4_44: f4_45: f4_46: f4_47: f4_48: f4_49:
f4_50: f4_51: f4_52: f4_53: f4_54: f4_55: f4_56: f4_57: f4_58:
f4_59: f4_60: f4_61: f4_62: f4_63: f4_64: f4_65: f4_66: f4_67:
f4_68: f4_69: f4_70: f4_71: f4_72: f5_1: f5_2: f5_3: f5_4:
f5_5: f5_6: f5_7: f5_8: f5_9: f5_10: f5_11: f5_12: f5_13:
f5_14: f5_15: f5_16: f5_17: f5_18: f5_19: f5_20: f5_21: f5_22:
f5_23: f5_24: f5_25: f5_26: f5_27: f5_28: f5_29: f5_30: f5_31:
f5_32: f5_33: f5_34: f5_35: f5_36: f5_37: f5_38: f5_39: f5_40:
f5_41: f5_42: f5_43: f5_44: f5_45: f5_46: f5_47: f5_48: f5_49:
f5_50: f5_51: f5_52: f5_53: f5_54: f5_55: f5_56: f5_57: f5_58:
f5_59: f5_60: f5_61: f5_62: f5_63: f5_64: f5_65: f5_66: f5_67:
f5_68: f5_69: f5_70: f5_71: f5_72: f5_73: f5_74: f5_75: f5_76:
f5_77: f5_78: f5_79: f5_80: f5_81: f5_82: f5_83: f5_84: f5_85:
f5_86: f5_87: f5_88: f5_89: f5_90: f5_91: f5_92: f5_93: f5_94:
f5_95: f5_96: f5_97: f5_98: f5_99: f5_100: f5_101: f5_102:
f5_103: f5_104: f5_105: f5_106: f5_107: f5_108: f5_109:
f5_110: f5_111: f5_112: f5_113: f5_114: f5_115: f5_116:
f5_117: f5_118: f5_119: f5_120: f5_121: f5_122: f5_123:
f5_124: f5_125: f5_126: f5_127: f5_128: f5_129: f5_130:
f5_131: f5_132: f5_133: f5_134: f5_135: f5_136: f5_137:
f5_138: f5_139: f5_140: f5_141: f5_142: f5_143: f5_144:
f5_145: f5_146: f5_147: f5_148: f5_149: f5_150: f5_151:
f5_152: f5_153: f5_154: f5_155: f5_156: f5_157: f5_158:
f5_159: f5_160: f5_161: f5_162: f5_163: f5_164: f5_165:
f5_166: f5_167: f5_168: f5_169: f6_1: f6_2: f6_3: f6_4: f6_5:

f6_6: f6_7: f6_8: f6_9: f6_10: f6_11: f6_12: f6_13: f6_14 :
f6_15: f6_16: f6_17: f6_18: f6_19: f6_20: f6_21: f6_22: f6_23:
f6_24: f6_25: f6_26: f6_27: f6_28: f6_29: f6_30: f6_31: f6_32:
f6_33: f6_34: f6_35: f6_36: f6_37: f6_38: f6_39: f6_40: f6_41:
f6_42: f6_43: f6_44: f6_45: f6_46: f6_47: f6_48: f6_49: f6_50:
f6_51: f6_52: f6_53: f6_54: f6_55: f6_56: f6_57: f6_58: f6_59:
f6_60: f6_61: f6_62: f6_63: f6_64: f6_65: f6_66: f6_67: f6_68:
f6_69: f6_70: f6_71: f6_72: f6_73: f6_74: f6_75: f6_76: f6_77:
f6_78: f6_79: f6_80: f6_81: f6_82: f6_83: f6_84: f6_85: f6_86:
f6_87: f6_88: f6_89: f6_90: f6_91: f6_92: f6_93: f6_94: f6_95:
f6_96: f6_97: f6_98: f6_99: f6_100: f6_101: f6_102: f6_103:
f6_104: f6_105: f6_106: f6_107: f6_108: f6_109: f6_110:
f6_111: f6_112: f6_113: f7_1: f7_2: f7_3: f7_4: f7_5: f7_6:
f7_7: f7_8: f7_9: f7_10: f7_11: f7_12: f7_13: f7_14: f7_15:
f7_16: f7_17: f7_18: f7_19: f7_20: f7_21: f7_22: f7_23: f7_24:
f7_25: f7_26: f7_27: f7_28: f7_29: f7_30: f7_31: f7_32: f7_33:
f7_34: f7_35: f7_36: f7_37: f7_38: f7_39: f7_40: f7_41: f7_42:
f7_43: f7_44: f7_45: f7_46: f7_47: f7_48: f7_49: f7_50: f7_51:
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f13_190: f13_191: f13_192: f13_193: f13_194: f13_195:
f13_196: f13_197: f13_198: f13_199: f13_200: c14_1: 0f14_1:
f14_2: f14_3: f14_4: f14_5: f14_6: f14_7: f14_8: f14_9:
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f14_17: f14_18: f14_19: f14_20: f14_21: f14_22: f14_23:
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f14_38: f14_39: f14_40: f14_41: f14_42: f14_43: f14_44:
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f14_52: f14_53: f14_54: f14_55: f14_56: f14_57: f14_58:
f14_59: f14_60: f14_61: f14_62: f14_63: f14_64: f14_65:
f14_66: f14_67: f14_68: f14_69: f14_70: f14_71: f14_72:
f14_73: f14_74: f14_75: f14_76: f14_77: f14_78: f14_79:
f14_80: f14_81: f14_82: f14_83: f14_84: f14_85: f14_86:
f14_87: f14_88: f14_89: f14_90: f14_91: f14_92: f14_93:
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f14_101: f14_102: f14_103: f14_104: f14_105: f14_106:
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f14_113: f14_114: f14_115: f14_116: f14_117: f14_118:
f14_119: f14_120: f14_121: f14_122: f14_123: f14_124:
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7SEPTEMBER–OCTOBER 2018 © 2018 CCH
INCORPORATED AND ITS AFFILIATES. ALL RIGHTS
RESERVED.
Choice Of Entity Corner
S Corporations and the New International
Tax Provisions of the TCJA
By Joseph E. Tierney III
O ver the course of the years, many of my clients have operated
as S cor-porations. Where they have had international
operations, my primary concern has been to make sure that their
foreign subsidiaries are organized
in the countries in which their principal manufacturing or
production operations
are located. In short, I’ve tried to be sure that these subsidiaries
haven’t generated
subpart F income. None of this has engaged choice of entity
considerations.
But the new foreign tax provisions of the Tax Cuts and Jobs Act
of 2017 (the
“TCJA”) now very directly engage choice of entity issues. The
purpose of this col-
umn is to explore some of the implications of these provisions
for S corporations
and whether a domestic C corporation should be introduced into
the group headed
by an S corporation to hold the shares of controlled foreign
corporations (“CFCs”).
Let’s use an example to work our way through these issues.
Assume XYZ is an
S corporation. It owns all the stock of several CFCs
incorporated and operating

in The Peoples Republic of Shangri-La. These entities have not
generated subpart
F income up to now because their principal production and sales
operations are
located in Shangri-La and they are incorporated in Shangri-La.
We’ll assume that
these CFCs have on November 5, 2017, and December 31, 2017,
$10,000,000
of earnings and profits (“E&P”) that has not been taxed under
subpart F and are
not “effectively connected” to a U.S. trade or business.
So, how is XYZ affected by the provisions of the TCJA? The
basic concept
underlying the new law is the establishment of a territorial tax
system. The key
notion is that, in the future, earnings of our Shangri-La
subsidiaries would be
taxed only in Shangri-La, and when earnings are “repatriated”
through dividends,
those dividends will not be taxed in the United States.1 To
achieve this, the TCJA
created Code Sec. 245A. It establishes a 100% deduction for
dividends received
by a “specified shareholder” from the foreign source E&P of a
foreign corporation
(called the “participation deduction”). A “specified
shareholder” is a domestic C
corporation that owns 10% or more of a foreign corporation
other than a “passive
foreign investment corporation”—an exception I’ll ignore in
this column. Code
Sec. 246(c)(5) creates a holding period rule (366 days of a 731 -
day period hav-
ing the ex-dividend date in the middle) that wouldn’t be a
problem for us. But,

unfortunately, this deduction is not available to S corporations
or their shareholders.
To help pay for this new approach, under new Code Sec. 965,
each 10%
shareholder of a “specified foreign corporation” (generally, a
CFC or a foreign
corporation having a domestic corporation as a shareholder)
having “deferred
JOSEPH E. TIERNEY III is a
Shareholder of Meissner
Tierney Fisher & Nichols S.C. in
Milwaukee, Wisconsin.
ENTITY CHOICE CORNER
foreign income” (essentially, post-86 E&Ps that weren’t
taxed under subpart F or “effectively connected” to a U.S.
trade or business) must include in the shareholder’s 2017
return an amount equal to the shareholder’s pro rata share
of “accumulated deferred post 1986 foreign income” of
such corporations. These corporations are called “deferred
foreign income corporations” (“DFICs”) in the statute.
The required inclusion is through the mechanics of subpart
F. In effect, the amount that is to be taxed under Code Sec.
965 becomes subpart F income included under Code Sec.
951. This inclusion is required of all types of shareholders
of DFICs, including C corporations and S corporations,
as well as individuals, partnerships and trusts. So, XYZ’s
shareholders must pick up $10,000,000 as taxable income
for 2017 through subpart F (specifically Code Sec. 951).
There are two ironies for my S corporation clients in

this. First, all the good work done to make sure that their
foreign subsidiaries did not generate subpart F income
seems wasted because the shareholders of these corpora-
tions must include all the deferred income accumulated
over the course of the years in their respective 2017 tax
returns—a feature shared with all other types of sharehold-
ers of DFICs. Second, they won’t have the benefit of the
participation dividend deduction going forward because
the dividends that would otherwise constitute participa-
tion dividends are taxable to S corporations—which is not
the case for C corporation shareholders.
There are, however, three important relief provisions at
work in Code Sec. 965, and one significant benefit from
its application. Let’s start with the relief provisions. First,
reduced tax rates are applicable. The rates are scaled down
to 15.5% for the “cash position” of the foreign subsidiary
corporations and 8% for other assets (the balance), and
the foreign tax credit (to the extent available) is similarly
scaled down. But this scale down is measured against the
maximum corporate rate for 2017 (35%), and so, for S
corporation shareholders, this translates to reduced rates of
roughly 17.5% for cash assets and roughly 9.1% for non-
cash assets.2 There are extensive provisions dealing with
the distinction between a foreign corporation’s cash posi -
tion and its non-cash assets. And notice that the “blocked
currency” rules under Code Sec. 964(b) could operate to
convert what are “cash assets” into “non-cash assets.”
Second, under Code Sec. 965(h), each taxpayer may elect
an eight-year deferred payout of the tax attributable to the
Code Sec. 965 inclusion (8% for each of the first five years,
then 15% in the sixth year, 20% in the 7th year and 25% in
the 8th year). See new Proposed Reg. §1.965-7(b) for details,
including provisions for a “consent agreement,” a description
of “acceleration events” that will terminate deferral, and an

exception that will forestall acceleration for certain events
if there is a “section 965(h) eligible transferee” who signs a
“transfer agreement.” Heads up estate planners; death is an
acceleration event and the exception does not seem available.
Third, under Code Sec. 965(i), shareholders of S cor-
porations may elect permanent deferral until a “triggering
event.” The statute imposes joint liability for the deferred
tax on the S corporation and requires annual reporting.
The triggering events include (i) loss of S status (though
reinstatement where the termination is inadvertent will
apparently forestall the triggering event), (ii) sale of “sub-
stantially all the assets” (presumably 70% of gross assets
and 90% of net assets), liquidation of the S corporation
or cessation of business, or ceasing to exist, or (iii) disposi -
tion of stock, including by gift or death (inclusion is pro
rata). Code Sec. 965(i)(4) goes on to say that upon any
triggering event, the eight-year deferral under Code Sec.
965(h) can be elected, provided that, for a triggering event
is described in (ii) above, the consent of the Commissioner
will be needed. But Code Sec. 965(i)(2)(C) also provides
an event described in number (iii) above, a disposition of
stock, won’t be a triggering event if the transferee assumes
the remaining net tax liability of the transferor.
Proposed Reg. §1.965-7(c) provides rules for the Code
Sec. 965(i) permanent deferral election for S corporation
shareholders. It provides the structure for the rules relat-
ing to electing the eight-year deferral after a triggering
event, requiring the filing of a “consent agreement” and
specifies that, in the case of a triggering event descri bed in
(ii) above, filing this agreement automatically gives rise to
the necessary IRS consent to use the eight-year deferral.
Proposed Reg. §1.965-7(c) also specifies rules under

which a disposition of stock will not constitute a triggering
event. What is required is an “eligible transferee” (someone
other than a “domestic passthrough entity” such as a trust),
and that transferor and eligible transferee file a “transfer
agreement” with the Service. It specifies a form of “transfer
agreement” to affect the assumption of the net tax liability,
and makes clear that the transferor remains jointly and
severally liable also. Again heads up estate planners: these new
regulations give you just a 30-day window after the death of
an S corporation shareholder to file the transfer agreement
to preserve the permanent deferral election. But how the
transfer agreement works in a death setting seems unclear.3
Notice also that the permanent deferral with respect to a
particular DFIC will be available only if the S corporation
has sufficient ownership of the DFIC that qualifies under
Code Sec. 958(a); and if it does, then all of the DFIC’s
income passing through to the S corporation (even income
from domestic partnerships) will be protected by the elec-
tion under Code Sec. 965(i). However, if the S corpora-
tion is not a “U.S. shareholder” under Code Sec. 951(b),
JOURNAL OF PASSTHROUGH ENTITIES SEPTEMBER–
OCTOBER 20188
the permanent deferral election will not be available. For
example, if the S corporation’s ownership of shares in the
DFIC is entirely through a domestic passthrough entity
(e.g., a domestic partnership) that is a U.S. shareholder
of the DFIC, but its percentage interest in the domestic
partnership pulls up less than 10% of the interest in the
DFIC so that the S corporation itself will not be a “U.S.
shareholder” of the DFIC, the domestic partnership’s K-1
will pass through income under Code Sec. 965(a) and

deduction under Code Sec. 965(c) to the S corporation,
but the 965(i) election will not be available to the S cor-
poration’s shareholders with respect to that DFIC to defer
the related tax. See Notice 2018-26, section 3.05(b) and
the VIII. D. of the Preamble to the proposed regulations.4
Section 3.04(b) of Notice 2018-26 promised us regula-
tions providing that any change in a non-corporate entity’s
status under Reg. §301.7701-3 after November 2, 2017,
will be disregarded in the application of Code Sec. 965
if it reduces the tax otherwise due under Code Sec. 965.
Proposed Reg. §1.965-4(c)(2) fulfills this promise. This
will be true even if the election would properly relate back
to a date before November 5, 2017. However, suppose
our S corporation acquires 100% of a C corporation on
October 1, 2017 and which makes a QSub election on
November 30, 2017 to be effective on October 1, 2017.
This election shouldn’t be vitiated by this regulation
because this election is not made under Reg. §301.7701-3,
but rather under Reg. §1.1361-3.
As noted above, there is a significant benefit to the
shareholders of our S corporation from the application of
Code Sec. 965, which has otherwise caused them to endure
inclusion of substantial accumulated deferred income (in
our hypothetical, $10,000,000). These amounts (in effect all
of the remaining foreign source E&P of these corporations)
immediately become previously taxed E&P under Code
Sec. 959.5 Thus, when XYZ does repatriate these earnings
as distributions, they will not be included in gross income,
not even as dividends.6 So, while our S corporation share-
holders won’t have available the participation deduction
under Code Sec. 245A, they will have protection for these
distributions to our S corporation hereafter up to the total
amount of the earnings brought into taxation by Code Sec.
965. This is true even though our S corporation shareholders

Form 1118 (Rev. December 2020)Department of the Treasury

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