[Code of Federal Regulations]
[Title 26, Volume 7]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.552-1]

[Page 286]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.552-1  Definition of foreign personal holding company.

    (a) A foreign personal holding company is any foreign corporation, 
other than a corporation exempt from taxation under subchapter F 
(section 501 and following), chapter 1 of the Code, and other than 
certain banking institutions which satisfy the requirements of section 
552(b)(2) and paragraph (b) of Sec. 1.552-4 which for the taxable year 
meets (1) the gross income requirement specified in section 552(a)(1); 
and (2) the stock ownership requirement specified in section 552(a)(2). 
Both requirements must be satisfied with respect to each taxable year.
    (b) A foreign corporation which comes within the classification of a 
foreign personal holding company is not subject to taxation either under 
section 531 or section 541. See sections 532(b)(2) and 542(c)(5). The 
fact that a foreign corporation is a foreign personal holding company 
does not relieve the corporation from liability for the taxes imposed 
generally upon foreign corporations, such as the taxes imposed by 
sections 881 and 882, since such taxes apply regardless of the 
classification of the foreign corporation as a foreign personal holding 
company.