,i  #aae? ,,congress  #a/ ,session  ,h4 
,r4 #aica  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,april #e1 #bjag,mr4  
,doggett 7= himself1 ,mr4 ,blum5au]1    
,mr4 ,capuano1 ,mr4 ,c>twright1 ,ms4    
,judy ,*u ( ,cali=nia1 ,mr4 ,cicill9e1  
,mr4 ,coh51 ,mr4 ,cony]s1 ,mr4 ,cumm+s1 
,mr4 ,de,fazio1 ,ms4 ,de,lauro1 ,mr4    
,ellison1 ,mr4 ,g>am5di1 ,mr4 ,g5e ,gre5
 ( ,texas1 ,mr4 ,grijalva1 ,ms4 ,eddie  
,b]nice ,johnson ( ,texas1 ,mr4 ,johnson
 ( ,georgia1 ,ms4 ,kaptur1 ,mr4 ,kildee1
 ,mr4 ,l>son ( ,connecticut1 ,ms4 ,lee1 
,mr4 ,lewis ( ,georgia1 ,mr4 ,loebsack1 
,mr4 ,lyn*1 ,ms4 ,moore1 ,mrs4          
,napolitano1 ,ms4 ,norton1 ,mr4 ,pocan1 
,mr4 ,rask91 ,ms4 ,roybal-,all>d1 ,ms4  
,s*ak[sky1 ,ms4 ,slaught]1 ,mr4 ,?ompson
 ( ,cali=nia1 ,mr4 ,tonko1 ,ms4         
,velzquez1 ,mrs4 ,watson ,coleman1 ,mr4 
,wel*1 ,mr4 ,gutirrez1 ,mr4 ,y>mu?1 ,mr4
 ,nadl]1 ,mr4 ,scott ( ,virg9ia1 ,mr4   
,payne1 ,ms4 ,mc,collum1 ,ms4 ,p+ree1   
,mr4 ,pascrell1 ,mr4 ,lip9ski1 & ,mr4   
,s>banes7 introduc$ ! foll[+ bill2 :i* 0

 ref]r$ to ! ,committee on ,ways &      
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code ( #aihf to disc\rage      
corporate inv]sions & to impose tax on  
unrepatriat$ e>n+s & unrecogniz$ ga9s 9 
connection ) corporate expatriations4   
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,corporate ,e,xpatriates & ,inv]t]s   
,tax ,fairness ,act or z ! ,corporate   
,,exit ,fairness ,act4  #b4 ,rules to   
disc\rage corporate inv]sions & impose  
tax on unrepatriat$ e>n+s & unrecogniz$ 
ga9s 9 connection ) corporate           
expatriations  7a7 ,rules relat+ to     
corporate inv]sions & corporate         
expatriations complet$ aft] ,janu>y #d1 
#bjag ,sub*apt] ,c ( *apt] #hj ( !      
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new section3  
#ghgd;,a4 ,rules relat+ to corporate    
inv]sions & corporate expatriations  7a7
 ,unrepatriat$ e>n+s & unrecogniz$ ga9s 
9 connection ) corporate expatriation   
7#a7 ,9 g5]al ,9 ! case ( a corporate   
expatriation-- 7,a7 ! subp>t ,f income (

 any applicable controll$ =eign         
corporation = its la/ taxable ye> end+  
be=e ! acquisition date %all be increas$
 by ! accumulat$ def]r$ =eign income (  
su* corporation1 &  7,b7 any ga9        
position /ock ( any applicable controll$
 =eign corporation :i* is held by an    
expatriat$ entity on ! acquisition date 
%all be treat$ z sold on su* date = its 
fair m>ket value4  7#b7 ,rules relat$ to
 recognition ( ga9  7,a7 ,application to
 dispositions dur+ #e ye>s be=e         
acquisition date ,9 ! case ( any        
disposition ( ga9 position /ock ( any   
applicable controll$ =eign corporation  
by an expatriat$ entity at any "t dur+ !
 #e-ye> p]iod end+ on ! acquisition date
 ) respect to a corporate expatriation1 
su* disposition %all be treat$ z a sale 
( su* /ock = its fair m>ket value & !   
p]iod ( limitation on assessm5t &       
collection ( any tax ) respect to su*   
disposition "u section #feja or #fejb   
%all comm5ce n e>li] ?an ! acquisition  
date4  7,b7 ,ga9 position /ock ,=       

purposes ( ?is subsection1 ! t]m ga9    
position /ock means any /ock if ga9 w\ld
 arise f ! sale ( su* /ock4  7,c7 ,ga9  
tak5 into acc\nt2 prop] adju/m5t        
,not)/&+ any o!r provision ( ?is title1 
9 ! case ( any sale "u p>agraph         
7#a77;,b7 or 7#b77;,a71 any ga9 aris+ f 
su* sale %all be tak5 into acc\nt = !   
taxable ye> ( ! sale4 ,9 ! case ( any   
sale "u p>agraph 7#a77;,b71 prop]       
adju/m5t %all be made 9 ! am\nt ( any   
ga9 or loss subsequ5tly realiz$ = ga9   
tak5 into acc\nt "u ! prec$+ s5t5ce4    
7b7 ,=eign p>5t treat$ z dome/ic        
corporation ,not)/&+ section            
#ggja7;a77#d7-- 7#a7 ,application to    
corporate inv]sions ,9 ! case ( a       
corporate inv]sion1 ! =eign corporation 
mak+ ! acquisition describ$ 9 subsection
 7c77#a7 %all be treat$ = purposes ( ?is
 title z a dome/ic corporation4  7#b7   
,elective application to corporate      
expatriations ,if ! common p>5t ( !     
exp&$ affiliat$ gr\p :i* includes !     
=eign corporation mak+ ! acquisition 9 a

 corporate expatriation elects !        
application ( ?is p>agraph & ent]s into 
an agreem5t ) ! ,secret>y provid+ !     
,secret>y su* assurances z ! ,secret>y  
may require t ! application ( p>agraph  
7#a7 w be adm9i/rable & en=ceable )     
respect to su* corporation--  7,a7 su*  
=eign corporation %all be treat$ =      
purposes ( ?is title z a dome/ic        
corporation1 &  7,b7 subsection 7a7 %all
 n apply ) respect to su* corporate     
expatriation4  7c7 ,corporate inv]sion2 
corporate expatriation ,= purposes ( ?is
 section-- 7#a7 ,corporate inv]sion ,!  
t]m corporate inv]sion means ! direct or
 indirect acquisition 7pursuant to a    
plan or a s]ies ( relat$ transactions7 (
 sub/antially all ( ! assets ( a dome/ic
 corporation or dome/ic p>tn]%ip1       
sub/antially all ( ! trade or bus9ess   
assets ( a dome/ic corporation or       
dome/ic p>tn]%ip1 or sub/antially all ( 
! ,unit$ ,/ates trade or bus9ess assets 
( a =eign p>tn]%ip1 by a =eign          
corporation if--  7,a7 su* acquisition  

is complet$ aft] ,janu>y #d1 #bjag1     
7,b7 aft] ! acquisition ! exp&$         
affiliat$ gr\p :i* includes ! =eign     
corporation does n h sub/antial bus9ess 
activities 9 ! =eign c\ntry 9 :i*1 or "u
 ! law ( :i*1 ! =eign corporation is    
creat$ or organiz$1 :5 comp>$ to ! total
 bus9ess activities ( su* exp&$         
affiliat$ gr\p1 &  7,c7 aft] !          
acquisition1 ei!r-- 7i7 m ?an #ej p]c5t 
( ! /ock 7by vote or value7 ( ! =eign   
corporation is held--  7,i7 9 ! case (  
an acquisition ) respect to a dome/ic   
corporation1 by =m] %>ehold]s ( !       
dome/ic corporation by reason ( hold+   
/ock 9 ! dome/ic corporation1 or  7,,ii7
 9 ! case ( an acquisition ) respect to 
a p>tn]%ip1 by =m] p>tn]s ( ! p>tn]%ip  
by reason ( hold+ a capital or pr(its   
int]e/ 9 ! p>tn]%ip1 or  7ii7 !         
managem5t & control ( ! exp&$ affiliat$ 
gr\p :i* includes ! =eign corporation   
occurs1 directly or indirectly1 prim>ily
 )9 ! ,unit$ ,/ates1 & su* exp&$        
affiliat$ gr\p has significant dome/ic  

bus9ess activities4  7#b7 ,corporate    
expatriation ,! t]m corporate           
expatriation means any acquisition :i*  
is n describ$ 9 p>agraph 7#a7 b :i* w\ld
 be s describ$ if p>agraph 7#a7 7 appli$
 )\t reg>d to subp>agraphs 7,b7 & 7,c7  
!re(4  7#c7 ,det]m9ations ) respect to  
managem5t & control & bus9ess activities
  7,a7 ,managem5t & control ,= purposes 
( p>agraph 7#a77;,c77ii7-- 7i7 ,9 g5]al 
,! ,secret>y %all prescribe regulations 
= purposes ( det]m9+ cases 9 :i* !      
managem5t & control ( an exp&$ affiliat$
 gr\p is to be treat$ z occurr+1        
directly or indirectly1 prim>ily )9 !   
,unit$ ,/ates4  7ii7 ,executive (fic]s &
 s5ior managem5t ,su* regulations %all  
provide t ! managem5t & control ( an    
exp&$ affiliat$ gr\p %all be treat$ z   
occurr+1 directly or indirectly1        
prim>ily )9 ! ,unit$ ,/ates if          
sub/antially all ( ! executive (fic]s & 
s5ior managem5t ( ! exp&$ affiliat$ gr\p
 :o ex]cise day-to-day responsibility = 
mak+ decisions involv+ /rategic1        

f9ancial1 & op]ational policies ( !     
exp&$ affiliat$ gr\p are bas$ or        
prim>ily locat$ )9 ! ,unit$ ,/ates4     
,individuals :o 9 fact ex]cise su*      
day-to-day responsibilities %all be     
treat$ z executive (fic]s & s5ior       
managem5t reg>dless ( _! title4  7,b7   
,sub/antial bus9ess activities ,=       
purposes ( p>agraph 7#a77;,b71 ! t]m    
sub/antial bus9ess activities %all h !  
mean+ giv5 su* t]m "u regulations 9     
effect on ,janu>y #d1 #bjag1 except t ! 
,secret>y may issue regulations increas+
 ! ?re%old p]c5t 9 any ( ! te/s "u su*  
regulations = det]m9+ if bus9ess        
activities con/itute sub/antial bus9ess 
activities = purposes ( ?is subsection4 
7,c7 ,significant dome/ic bus9ess       
activities ,= purposes ( p>agraph       
7#a77;,c77ii71 an exp&$ affiliat$ gr\p  
has significant dome/ic bus9ess         
activities if at lea/ #be p]c5t (--  7i7
 ! employees ( ! gr\p are bas$ 9 !      
,unit$ ,/ates1  7ii7 ! employee         
comp5sation incurr$ by ! gr\p is incurr$

 ) respect to employees bas$ 9 ! ,unit$ 
,/ates1  7iii7 ! assets ( ! gr\p are    
locat$ 9 ! ,unit$ ,/ates1 or  7iv7 !    
income ( ! gr\p is d]iv$ 9 ! ,unit$     
,/ates1  det]m9$ 9 ! same mann] z su*   
det]m9ations are made = purposes (      
det]m9+ sub/antial bus9ess activities "u
 regulations ref]r$ to 9 subp>agraph    
7,b7 z 9 effect on ,janu>y #d1 #bjag1 b 
appli$ by treat+ all ref]5ces 9 su*     
regulations to =eign c\ntry & relevant  
=eign c\ntry z ref]5ces to ! ,unit$     
,/ates4 ,! ,secret>y may issue          
regulations decreas+ ! ?re%old p]c5t 9  
any ( ! te/s "u su* regulations =       
det]m9+ if bus9ess activities con/itute 
significant dome/ic bus9ess activities =
 purposes ( ?is subsection4  7#d7 ,c]ta9
 /ock disreg>d$ ,!re %all n be tak5 into
 acc\nt 9 det]m9+ own]%ip "u p>agraph   
7#a77;,c77i7-- 7,a7 /ock held by memb]s 
( ! exp&$ affiliat$ gr\p :i* includes ! 
=eign corporation1 or  7,b7 /ock ( su*  
=eign corporation :i* is sold 9 a public
 (f]+ relat$ to ! acquisition describ$ 9

 ! matt] prec$+ subp>agraph 7,a7 (      
p>agraph 7#a74  7#e7 ,plan deem$ 9 c]ta9
 cases ,if a =eign corporation completes
 an acquisition :i* w\ld be describ$ 9  
p>agraph 7#a7 or 7#b7 if su* acquisition
 7 pursuant to a plan & su* acquisition 
is complet$--  7,a7 9 ! case ( an       
acquisition :i* w\ld be s describ$ 9    
p>agraph 7#a71 dur+ ! #d-ye> p]iod      
beg9n+ on ! date :i* is #b ye>s be=e !  
own]%ip requirem5ts ( p>agraph          
7#a77;,c77i7 are met1 or  7,b7 9 ! case 
( an acquisition :i* w\ld be s describ$ 
9 p>agraph 7#b71 dur+ ! #d-ye> p]iod    
end+ on ! acquisition date1  su*        
acquisition %all be treat$ z pursuant to
 a plan4  7#f7 ,c]ta9 transf]s disreg>d$
 ,! transf] ( prop]ties or liabilities  
7includ+ by contribution or di/ribution7
 %all be disreg>d$ if su* transf]s are  
"p ( a plan a pr9cipal purpose ( :i* is 
to avoid ! purposes ( ?is section4  7#g7
 ,special rule = relat$ p>tn]%ips ,=    
purposes ( apply+ p>agraph 7#a77;,c77i7 
to ! acquisition ( a trade or bus9ess ( 

a p>tn]%ip1 except z provid$ 9          
regulations1 all p>tn]%ips :i* are "u   
common control 7)9 ! mean+ ( section    
#dhb7 %all be treat$ z #a p>tn]%ip4     
7#h7 ,regulations ,! ,secret>y %all     
prescribe su* regulations z may be      
appropriate to det]m9e :e!r any         
transaction or s]ies ( transactions is a
 corporate inv]sion or corporate        
expatriation1 includ+ regulations--     
7,a7 to treat w>rants1 options1         
contracts to acquire /ock1 conv]tible   
debt int]e/s1 & o!r simil> int]e/s z    
/ock1 &  7,b7 to treat /ock z n /ock4   
7d7 ,o!r def9itions ,= purposes ( ?is   
section--  7#a7 ,accumulat$ def]r$ =eign
 income  7,a7 ,9 g5]al ,! t]m accumulat$
 def]r$ =eign income means ! excess (-- 
7i7 ! undi/ribut$ e>n+s ( ! controll$   
=eign corporation1 ov]  7ii7 !          
undi/ribut$ ,u4,s4 e>n+s ( su* controll$
 =eign corporation4  7,b7 ,undi/ribut$  
e>n+s ,! t]m undi/ribut$ e>n+s means !  
e>n+s & pr(its ( ! controll$ =eign      
corporation describ$ 9 section          

#iei7;c77#c71 det]m9$--  7i7 z ( ! close
 ( ! taxable ye> describ$ 9 subp>agraph 
7,a71  7ii7 )\t dim9ution by reason (   
di/ributions made dur+ su* taxable ye>1 
&  7iii7 )\t reg>d to ?is p>agraph4  ,= 
purposes ( ?is *apt]1 any det]m9ation ) 
respect to ! treatm5t ( di/ributions    
describ$ 9 clause 7ii7 %all be made aft]
 ! application ( ?is p>agraph to ! e>n+s
 & pr(its describ$ 9 ! matt] prec$+     
clause 7i74  7,c7 ,undi/ribut$ ,u4,s4   
e>n+s ,! t]m undi/ribut$ ,u4,s4 e>n+s   
has ! mean+ giv5 ! t]m po/-#aihf        
undi/ribut$ ,u4,s4 e>n+s 9 p>agraph 7#e7
 ( section #bde7;a71 det]m9$--  7i7 z ( 
! close ( ! taxable ye> describ$ 9      
subp>agraph 7,a7 ( ?is p>agraph1 &  7ii7
 )\t reg>d to po/-#aihf ea* place x     
appe>s 9 ! matt] be=e subp>agraph 7,a7 (
 su* p>agraph 7#e74  7#b7 ,applicable   
controll$ =eign corporation ,! t]m      
applicable controll$ =eign corporation  
means1 ) respect to any expatriat$      
entity1 any controll$ =eign corporation 
) respect to :i* su* entity 0 a ,unit$  

,/ates %>ehold] at any "t dur+ ! #e-ye> 
p]iod end+ on ! acquisition date4  7#c7 
,expatriat$ entity ,! t]m expatriat$    
entity means-- 7,a7 ! corporation or    
p>tn]%ip ref]r$ to 9 ! matt] prec$+     
subp>agraph 7,a7 ( subsection 7c77#a7   
7includ+ ) respect to ! application (   
su* subsection pursuant to subsection   
7c77#b771 &  7,b7 any ,unit$ ,/ates     
p]son :o is relat$ 7)9 ! mean+ ( section
 #bfg7;b7 or #gjg7;b77#a77 to a         
corporation or p>tn]%ip describ$ 9      
subp>agraph 7,a74  7#d7 ,acquisition    
date ,! t]m acquisition date means !    
date on :i* ! acquisition describ$ 9    
p>agraph 7#a7 or 7#b7 ( subsection 7c71 
z ! case may be1 is complet$4  7#e7     
,exp&$ affiliat$ gr\p ,! t]m exp&$      
affiliat$ gr\p means an affiliat$ gr\p z
 def9$ 9 section #aejd7;a7 b )\t reg>d  
to section #aejd7;b77#c71 except t      
section #aejd7;a7 %all be appli$ by     
sub/itut+ m ?an #ej p]c5t = at lea/ #hj 
p]c5t ea* place x appe>s4  7e7 ,special 
rules  7#a7 ,cr$its n all[$ aga9/ tax on

 unrepatriat$ e>n+s & unrecogniz$ ga9s  
,9 ! case ( any expatriat$ entity & any 
,unit$ ,/ates %>ehold] ( an applicable  
controll$ =eign corporation1 cr$its 7o!r
 ?an ! cr$it all[$ by section #ija7 %all
 be all[$ aga9/ ! tax impos$ by *apt] #a
 on su* entity or corporation = any     
taxable ye> ) respect to :i* any am\nt  
is includ$ 9 income "u subsection 7a7   
only to ! ext5t su* tax exce$s ! product
 (--  7,a7 ! am\nt s includ$ 9 income1 &
  7,b7 ! highe/ rate ( tax specifi$ 9   
section #aa7;b77#a74  ,= purposes (     
det]m9+ ! cr$it all[$ by section #ija1  
su* income %all be treat$ z f s\rces )9 
! ,unit$ ,/ates4  7#b7 ,coord9ation )   
section #agb & m9imum tax ,rules simil> 
to ! rules ( p>agraphs 7#c7 & 7#d7 (    
section #hfj;,e7a7 %all apply = purposes
 ( subsection 7a74  7f7 ,special rule = 
treaties ,no?+ 9 section #hid or        
#gheb7;d7 or 9 any o!r provision ( law  
%all be con/ru$ z p]mitt+ an exemption1 
by reason ( any treaty obligation ( !   
,unit$ ,/ates h]et(ore or h]eaft] ent]$ 

into1 f ! provisions ( ?is section4  7g7
 ,regulations ,! ,secret>y %all provide 
su* regulations z are necess>y to c>ry  
out ?is section1 includ+ regulations    
provid+ = su* adju/m5ts to ! application
 ( ?is section z are necess>y to prev5t 
! avoidance ( ! purposes ( ?is section1 
includ+ ! avoidance ( su* purposes      
?r\gh--  7#a7 ! use ( relat$ p]sons1    
pass-?r\gh or o!r noncorporate entities1
 or o!r int]m$i>ies1 or  7#b7           
transactions design$ to h p]sons cease  
to be 7or n become7 memb]s ( exp&$      
affiliat$ gr\ps or relat$ p]sons4  4    
7b7 ,modifications to rules relat+ to   
corporate inv]sions complet$ on or be=e 
,janu>y #d1 #bjag  7#a7 ,9 g5]al        
,subsection 7b7 ( section #ghgd ( !     
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
to read z foll[s3  7b7 ,inv]t$          
corporations treat$ z dome/ic           
corporations  7#a7 ,9 g5]al ,not)/&+    
section #ggja7;a77#d71 a =eign          
corporation %all be treat$ = purposes ( 
?is title z a dome/ic corporation if--  

7,a7 su* corporation w\ld be a surrogate
 =eign corporation if subsection 7a77#b7
 7 appli$ by sub/itut+ #hj p]c5t = #fj  
p]c5t1 or  7,b7 su* corporation is an   
inv]t$ dome/ic corporation4  7#b7       
,inv]t$ dome/ic corporation ,= purposes 
( ?is subsection1 a =eign corporation   
%all be treat$ z an inv]t$ dome/ic      
corporation if1 pursuant to a plan 7or a
 s]ies ( relat$ transactions7--  7,a7 ! 
entity completes aft] ,may #h1 #bjad1 & 
on or be=e ,janu>y #d1 #bjag1 ! direct  
or indirect acquisition (--  7i7        
sub/antially all ( ! assets ( a dome/ic 
corporation or dome/ic p>tn]%ip1  7ii7  
sub/antially all ( ! trade or bus9ess   
assets ( a dome/ic corporation or       
dome/ic p>tn]%ip1 or  7iii7 sub/antially
 all ( ! ,unit$ ,/ates trade or bus9ess 
assets ( a =eign p>tn]%ip1 &  7,b7 aft] 
! acquisition1 ei!r--  7i7 m ?an #ej    
p]c5t ( ! /ock 7by vote or value7 ( !   
entity is held-- 7,i7 9 ! case ( an     
acquisition ) respect to a dome/ic      
corporation1 by =m] %>ehold]s ( !       

dome/ic corporation by reason ( hold+   
/ock 9 ! dome/ic corporation1 or  7,,ii7
 9 ! case ( an acquisition ) respect to 
a p>tn]%ip1 by =m] p>tn]s ( ! p>tn]%ip  
by reason ( hold+ a capital or pr(its   
int]e/ 9 ! p>tn]%ip1 or  7ii7 !         
managem5t & control ( ! exp&$ affiliat$ 
gr\p :i* includes ! entity occurs1      
directly or indirectly1 prim>ily )9 !   
,unit$ ,/ates1 & su* exp&$ affiliat$    
gr\p has significant dome/ic bus9ess    
activities4  7#c7 ,exception =          
corporations ) sub/antial bus9ess       
activities 9 =eign c\ntry ( organization
 ,a =eign corporation describ$ 9        
p>agraph 7#b7 %all n be treat$ z an     
inv]t$ dome/ic corporation if aft] !    
acquisition ! exp&$ affiliat$ gr\p :i*  
includes ! entity has sub/antial bus9ess
 activities 9 ! =eign c\ntry 9 :i* or "u
 ! law ( :i* ! entity is creat$ or      
organiz$ :5 comp>$ to ! total bus9ess   
activities ( su* exp&$ affiliat$ gr\p4  
,= purposes ( subsection                
7a77#b77;,b77iii7 & ! prec$+ s5t5ce1 !  

t]m sub/antial bus9ess activities %all h
 ! mean+ giv5 su* t]m "u regulations 9  
effect on ,may #h1 #bjad1 except t !    
,secret>y may issue regulations increas+
 ! ?re%old p]c5t 9 any ( ! te/s "u su*  
regulations = det]m9+ if bus9ess        
activities con/itute sub/antial bus9ess 
activities = purposes ( ?is p>agraph4   
7#d7 ,managem5t & control ,= purposes ( 
p>agraph 7#b77;,b77ii7-- 7,a7 ,9 g5]al  
,! ,secret>y %all prescribe regulations 
= purposes ( det]m9+ cases 9 :i* !      
managem5t & control ( an exp&$ affiliat$
 gr\p is to be treat$ z occurr+1        
directly or indirectly1 prim>ily )9 !   
,unit$ ,/ates4 ,! regulations prescrib$ 
"u ! prec$+ s5t5ce %all apply to p]iods 
aft] ,may #h1 #bjad4  7,b7 ,executive   
(fic]s & s5ior managem5t ,su*           
regulations %all provide t ! managem5t &
 control ( an exp&$ affiliat$ gr\p %all 
be treat$ z occurr+1 directly or        
indirectly1 prim>ily )9 ! ,unit$ ,/ates 
if sub/antially all ( ! executive (fic]s
 & s5ior managem5t ( ! exp&$ affiliat$  

gr\p :o ex]cise day-to-day              
responsibility = mak+ decisions involv+ 
/rategic1 f9ancial1 & op]ational        
policies ( ! exp&$ affiliat$ gr\p are   
bas$ or prim>ily locat$ )9 ! ,unit$     
,/ates4 ,individuals :o 9 fact ex]cise  
su* day-to-day responsibilities %all be 
treat$ z executive (fic]s & s5ior       
managem5t reg>dless ( _! title4  7#e7   
,significant dome/ic bus9ess activities 
,= purposes ( p>agraph 7#b77;,b77ii71 an
 exp&$ affiliat$ gr\p has significant   
dome/ic bus9ess activities if at lea/   
#be p]c5t (--  7,a7 ! employees ( ! gr\p
 are bas$ 9 ! ,unit$ ,/ates1  7,b7 !    
employee comp5sation incurr$ by ! gr\p  
is incurr$ ) respect to employees bas$ 9
 ! ,unit$ ,/ates1  7,c7 ! assets ( !    
gr\p are locat$ 9 ! ,unit$ ,/ates1 or   
7,d7 ! income ( ! gr\p is d]iv$ 9 !     
,unit$ ,/ates1  det]m9$ 9 ! same mann] z
 su* det]m9ations are made = purposes ( 
det]m9+ sub/antial bus9ess activities "u
 regulations ref]r$ to 9 p>agraph 7#c7 z
 9 effect on ,may #h1 #bjad1 b appli$ by

 treat+ all ref]5ces 9 su* regulations  
to =eign c\ntry & relevant =eign c\ntry 
z ref]5ces to ! ,unit$ ,/ates4 ,!       
,secret>y may issue regulations decreas+
 ! ?re%old p]c5t 9 any ( ! te/s "u su*  
regulations = det]m9+ if bus9ess        
activities con/itute significant dome/ic
 bus9ess activities = purposes ( ?is    
p>agraph4  4  7#b7 ,con=m+ am5dm5ts     
7,a7 ,clause 7i7 ( section              
#ghgd7;a77#b77;,b7 ( su* ,code is am5d$ 
by /rik+ aft] ,m>* #d1 #bjjc1 & ins]t+  
aft] ,m>* #d1 #bjjc1 & be=e ,may #i1    
#bjad14  7,b7 ,subsection 7c7 ( section 
#ghgd ( su* ,code is am5d$--  7i7 9     
p>agraph 7#b7-- 7,i7 by /rik+ subsection
 7a77#b77;,b77ii7 & ins]t+ subsections  
7a77#b77;,b77ii7 & 7b77#b77;,b77i71 &   
7,,ii7 by ins]t+ or 7b77#b77;,a7 aft]   
7a77#b77;,b77i7 9 subp>agraph 7,b71     
7ii7 9 p>agraph 7#c71 by ins]t+ or      
7b77#b77;,b77i71 z ! case may be1 aft]  
7a77#b77;,b77ii71  7iii7 9 p>agraph     
7#e71 by /rik+ subsection               
7a77#b77;,b77ii7 & ins]t+ subsections   

7a77#b77;,b77ii7 & 7b77#b77;,b77i71 &   
7iv7 9 p>agraph 7#f71 by ins]t+ or      
inv]t$ dome/ic corporation1 z ! case may
 be1 aft] surrogate =eign corporation4  
7c7 ,te*nical & con=m+ am5dm5ts relat$  
to /ock comp5sation ( insid]s 9         
expatriat$ corporations  7#a7 ,section  
#dihe7;a77#a7 ( su* ,code is am5d$ by   
/rik+ section #a7;h77#a77;,c7 & ins]t+  
section #a7;h77#a77;,d74  7#b7 ,section 
#dihe7;c7 ( su* ,code is am5d$ by ins]t+
 or section #ghgd;,a7c77#a7 7)\t reg>d  
to subp>agraph 7,c7 !re(7 aft] section  
#ghgd7;a77#b77;,b77i74  7#c7 ,section   
#dihe7;e77#b77;,a7 ( su* ,code is am5d$ 
by ins]t+ or section #ghgd;,a7d77#c7    
aft] section #ghgd7;a77#b74  7d7        
,cl]ical am5dm5ts  7#a7 ,! head+ =      
section #ghgd ( su* ,code is am5d$ by   
/rik+ expatriat$ entities & _! =eign    
p>5ts & ins]t+ corporate inv]sions      
complet$ on or be=e ,janu>y #d1 #bjag4  
7#b7 ,! table ( sections = sub*apt] ,c (
 *apt] #hj ( su* ,code is am5d$ by /rik+
 ! item relat+ to section #ghgd & ins]t+

 ! foll[+ new items3  ,sec4 #ghgd4      
,rules relat+ to corporate inv]sions    
complet$ on or be=e ,janu>y #d1 #bjag4  
,sec4 #ghgd;,a4 ,rules relat+ to        
corporate inv]sions & corporate         
expatriations4  4  7e7 ,effective date  
7#a7 ,9 g5]al ,except z provid$ 9       
p>agraph 7#b71 ! am5dm5ts made by ?is   
section %all apply taxable ye>s end+    
aft] ,janu>y #d1 #bjag4  7#b7           
,modifications to rules relat+ to       
corporate inv]sions complet$ on or be=e 
,janu>y #d1 #bjag ,! am5dm5ts made by   
subsection 7b7 %all apply to taxable    
ye>s end+ aft] ,may #h1 #bjad4