controlled foreign corporation

controlled foreign corporation

Tax. A foreign corporation in which more than 50% of the stock is owned by U.S. citizens who each own 10% or more of the voting stock.

? These shareholders (known as U.S. shareholders) are required to report their pro rata share of certain passive income of the corporation. ¡ª Abbr. CFC. IRC (26 USCA) ¡ì¡ì 951¨C964. [Cases: Internal Revenue 4119. C.J.S. Internal Revenue ¡ì 484.]


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Carl, Chinese legal translator, specializes in translating legal documents pertaining to complex business disputes.