Internal Revenue Code · 26 U.S.C.
§ 267A. Certain related party amounts paid or accrued in hybrid transactions or with hybrid entities
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 267A
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- December 22, 2017 by Pub. L. 115–97
- Length
- 5 subsections · 644 words · about 3 min to read
- Defines
- 4 terms
- Cross-references
- cites 3; cited by 0 Code sections and 4 other regulations
- Regulations
- 7 issued under this section
No deduction shall be allowed under this chapter for any disqualified related party amount paid or accrued pursuant to a hybrid transaction or by, or to, a hybrid entity.
The term “related party” means a related person as defined in section 954(d)(3), except that such section shall be applied with respect to the person making the payment described in paragraph (1) in lieu of the controlled foreign corporation otherwise referred to in such section.
For purposes of this section, the term “hybrid transaction” means any transaction, series of transactions, agreement, or instrument one or more payments with respect to which are treated as interest or royalties for purposes of this chapter and which are not so treated for purposes the tax law of the foreign country of which the recipient of such payment is resident for tax purposes or is subject to tax.
(Added Pub. L. 115–97, title I, § 14222(a), Dec. 22, 2017, 131 Stat. 2219.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
Regulations under this section
Treasury regulations (26 CFR) issued under § 267A
- § 1.267A-1 Disallowance of certain interest and royalty deductions.
- § 1.267A-2 Hybrid and branch arrangements.
- § 1.267A-3 Income inclusions and amounts not treated as disqualified hybrid amounts.
- § 1.267A-4 Disqualified imported mismatch amounts.
- § 1.267A-5 Definitions and special rules.
- § 1.267A-6 Examples.
- § 1.267A-7 Applicability dates.
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 3 other sections
- § 951(a) Amounts included in gross income of United States shareholders
- § 954(d)(3) Foreign base company income
- § 6038A Information with respect to certain foreign-owned corporations
Cited in 4 regulations not issued under it
- § 1.901-2 Income, war profits, or excess profits tax paid or accrued.
- § 1.6038-2 Information returns required of United States persons with respect to annual accounting periods of certain foreign corporations.
- § 1.6038-3 Information returns required of certain United States persons with respect to controlled foreign partnerships (CFPs).
- § 1.6038A-2 Requirement of return.
Amendment history
From the source credit and the official notes, newest first.
- Added by Pub. L. 115–97
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter B Computation of Taxable Income
- Part IX ITEMS NOT DEDUCTIBLE
Nearby sections
- § 264 Certain amounts paid in connection with insurance contracts
- § 265 Expenses and interest relating to tax-exempt income
- § 266 Carrying charges
- § 267 Losses, expenses, and interest with respect to transactions between related taxpayers
- § 267A Certain related party amounts paid or accrued in hybrid transactions or with hybrid entities
- § 268 Sale of land with unharvested crop
- § 269 Acquisitions made to evade or avoid income tax
- § 269A Personal service corporations formed or availed of to avoid or evade income tax
- § 269B Stapled entities
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Statutory Notes and Related Subsidiaries
Effective Date
Pub. L. 115–97, title I, § 14222(c), Dec. 22, 2017, 131 Stat. 2220, provided that: “The amendments made by this section [enacting this section] shall apply to taxable years beginning after December 31, 2017.”