Treasury Regulations · 26 CFR
§ 1.882-3. Gross income of a foreign 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. § 882
Cite as 26 CFR § 1.882-3
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- November 28, 1973 by T.D. 7293
- Issued under
- 26 U.S.C. § 882
- Length
- 611 words · about 3 min to read
- Cross-references
- cites 4 Code sections and 6 regulations; cited by 2
¶(a) In general—
¶(1) Inclusions. The gross income of a foreign corporation for any taxable year includes only (i) the gross income which is derived from sources within the United States and which is not effectively connected for the taxable year with the conduct of a trade or business in the United States by that corporation and (ii) the gross income, irrespective of whether such income is derived from sources within or without the United States, which is effectively connected for the taxable year with the conduct of a trade or business in the United States by that corporation. For the determination of the sources of income, see sections 861 through 863, and the regulations thereunder. For the determination of whether income from sources within or without the United States is effectively connected for the taxable year with the conduct of a trade or business in the United States, see sections 864(c) and 882 (d) and (e), §§ 1.864-3 through 1.864-7, and § 1.882-2.
¶(2) Exchange transactions. Even though a foreign corporation which effects certain transactions in the United States in stocks, securities, or commodities during the taxable year may not, by reason of section 864(b)(2) and paragraph (c) or (d) of § 1.864-2, be engaged in trade or business in the United States during the taxable year through the effecting of such transactions, nevertheless it shall be required to include in gross income for the taxable year the gains and profits from those transactions to the extent required by paragraph (c) of § 1.881-2 or by paragraph (a) of § 1.882-1.
¶(b) Foreign corporations not engaged in U.S. business. In the case of a foreign corporation which at no time during the taxable year is engaged in trade or business in the United States the gross income shall include only (1) the gross income from sources within the United States which is described in section 881(a) and paragraphs (b) and (c) of § 1.881-2, and (2) the gross income from sources within the United States which, by reason of section 882 (d) or (e) and § 1.882-2, is treated as effectively connected for the taxable year with the conduct of a trade or business in the United States by that corporation.
¶(c) Foreign corporations engaged in U.S. business. In the case of a foreign corporation which is engaged in trade or business in the United States at any time during the taxable year, the gross income shall include (1) the gross income from sources within and without the United States which is effectively connected for the taxable year with the conduct of a trade or business in the United States by that corporation, (2) the gross income from sources within the United States which, by reason of section 882 (d) or (e) and § 1.882-2, is treated as effectively connected for the taxable year with the conduct of a trade or business in the United States by that corporation, and (3) the gross income from sources within the United States which is described in section 881(a) and paragraphs (b) and (c) of § 1.881-2 and is not effectively connected for the taxable year with the conduct of a trade or business in the United States by that corporation.
¶(d) Effective date. This section applies for taxable years beginning after December 31, 1966. For corresponding rules applicable to taxable years beginning before January 1, 1967, see 26 CFR 1.882-2 (Revised as of January 1, 1971).
[T.D. 7293, 38 FR 32799, Nov. 28, 1973]
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
- § 861 Income from sources within the United States
- § 864 Definitions and special rules
- § 881 Tax on income of foreign corporations not connected with United States business
- § 882 Tax on income of foreign corporations connected with United States business
Regulations it cites
- § 1.864-3 Rules for determining income effectively connected with U.S. business of nonresident aliens or foreign corporations.
- § 1.882-2 Income of foreign corporations treated as effectively connected with U.S. business.
- § 1.864-2 Trade or business within the United States.
- § 1.881-2 Taxation of foreign corporations not engaged in U.S. business.
- § 1.882-1 Taxation of foreign corporations engaged in U.S. business or of foreign corporations treated as having effectively connected income.
- § 1.883-1 Exclusion of income from the international operation of ships or aircraft.
Cited by 2 other regulations
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.
- Issued by T.D. 7293 (38 FR 32799)
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- Foreign corporations
Nearby sections
- § 1.881-5 Exception for certain possessions corporations.
- § 1.882-0 Table of contents.
- § 1.882-1 Taxation of foreign corporations engaged in U.S. business or of foreign corporations treated as having effectively connected income.
- § 1.882-2 Income of foreign corporations treated as effectively connected with U.S. business.
- § 1.882-3 Gross income of a foreign corporation.
- § 1.882-4 Allowance of deductions and credits to foreign corporations.
- § 1.882-5 Determination of interest deduction.
- § 1.883-0 Outline of major topics.
- § 1.883-1 Exclusion of income from the international operation of ships or aircraft.