Treasury Regulations · 26 CFR
§ 1.1445-7. Treatment of foreign corporation that has made an election under section 897(i) to be treated as a domestic corporation.
Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).
Regulation under 26 U.S.C. § 1445
Cite as 26 CFR § 1.1445-7
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- December 24, 1986 by T.D. 8113
- Last amended
- February 6, 1987
- Issued under
- 26 U.S.C. § 1445
- Length
- 456 words · about 2 min to read
- Cross-references
- cites 3 Code sections and 4 regulations; cited by 4
¶(a) In general. Pursuant to section 897(i) a foreign corporation may elect to be treated as a domestic corporation for purposes of sections 897 and 6039C. A foreign corporation that has made such an election shall also be treated as a domestic corporation for purposes of the withholding required under section 1445, in accordance with the provisions of this section.
¶(1) Dispositions by corporation. A foreign corporation that has made an election under section 897(i) may provide a transferee with a certification of non-foreign status in connection with the corporation's disposition of a U.S. real property interest. However, in accordance with the provisions of §§ 1.1445-2(b)(2)(ii) and 1.1445-5(b)(3)(ii)(C), such an electing foreign corporation must attach to such certification a copy of the acknowledgment of the election provided to the corporation by the Internal Revenue Service pursuant to § 1.897-3(d)(4) which states that the information required by § 1.897-3 has been determined to be complete.
¶(2) Dispositions of interests in corporation. Dispositions of interests in electing foreign corporations shall be subject to the withholding requirements of section 1445(a) and the rules of §§ 1.1445-1 through 1.1445-4. Therefore, if a foreign person disposes of an interest in such a corporation, and that interest is a U.S. real property interest under the provisions of section 897 and regulations thereunder, then the transferee is required to withhold under section 1445(a).
¶(c) Withholding under section 1445(e). Because a foreign corporation that has made an election under section 897(i) is treated as a domestic corporation for purposes of determining withholding obligations under section 1445, such a corporation is not subject to the requirement of section 1445(e)(2) that a foreign corporation withhold at the corporate capital gain rate from the gain recognized upon the distribution of a U.S. real property interest. Such a corporation is subject to the provisions of section 1445(e)(3). Thus, if interests in an electing corporation constitute U.S. real property interests, then the corporation is required to withhold with respect to the non-dividend distribution of any property to an interest-holder that is a foreign person. See § 1.1445-5(e). Dividend distributions (distributions that are described in section 301) shall be treated as provided in sections 897(f), 1441 and 1442. In addition, if interests in an electing foreign corporation do not constitute U.S. real property interests, then distributions by such corporation shall be treated as provided in sections 897(f) (if applicable), 1441 and 1442.
(Approved by the Office of Management and Budget under control number 545-0902)
[T.D. 8113, 51 FR 46650, Dec. 24, 1986; 52 FR 3796, Feb. 6, 1987]
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
- § 897 Disposition of investment in United States real property
- § 1445 Withholding of tax on dispositions of United States real property interests
- § 301 Distributions of property
Regulations it cites
- § 1.1445-2 Situations in which withholding is not required under section 1445(a).
- § 1.897-3 Election by foreign corporation to be treated as a domestic corporation under section 897(i).
- § 1.1445-1 Withholding on dispositions of U.S. real property interests by foreign persons: In general.
- § 1.1445-5 Special rules concerning distributions and other transactions by corporations, partnerships, trusts, and estates.
Cited by 4 other regulations
- § 1.897-3 Election by foreign corporation to be treated as a domestic corporation under section 897(i).
- § 1.1445-1 Withholding on dispositions of U.S. real property interests by foreign persons: In general.
- § 1.1445-2 Situations in which withholding is not required under section 1445(a).
- § 1.1445-6 Adjustments pursuant to withholding certificate of amount required to be withheld under section 1445(e).
Amendment history
From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.
- Amended (52 FR 3796)
- Issued by T.D. 8113 (51 FR 46650)
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- Withholding of Tax on Nonresident Aliens and Foreign Corporations and Tax-Free Covenant Bonds
Nearby sections
- § 1.1445-3 Adjustments to amount required to be withheld pursuant to withholding certificate.
- § 1.1445-4 Liability of agents.
- § 1.1445-5 Special rules concerning distributions and other transactions by corporations, partnerships, trusts, and estates.
- § 1.1445-6 Adjustments pursuant to withholding certificate of amount required to be withheld under section 1445(e).
- § 1.1445-7 Treatment of foreign corporation that has made an election under section 897(i) to be treated as a domestic corporation.
- § 1.1445-8 Special rules regarding publicly traded partnerships, publicly traded trusts and real estate investment trusts (REITs).
- § 1.1445-10T Special rule for Foreign governments (temporary).
- § 1.1445-11T Special rules requiring withholding under § 1.1445-5 (temporary).
- § 1.1446-0 Table of contents.