What is a Controlled Foreign Corporation (CFC)?

Can Government Tax Shareholders of a Foreign Corporation?
Can Government Tax Shareholders of a Foreign Corporation?
March 25, 2014
Constructive Ownership Rules for Foreign Corporation
Constructive Ownership Rules for Foreign Corporation
March 25, 2014
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What is a Controlled Foreign Corporation (CFC)?

This is an important question. A corporation is a controlled foreign corporation if more than 50% of its shares are owned by U.S. shareholders. However, the definition of a U.S. shareholder for purposes of the CFC rules is qualified: only those U.S. citizens (or resident aliens) who own ten-percent (10%) or more of the shares of the corporation count.