Skip navigation

Foreign Corporations Subject to Stricter Tax Rules

Among other things, they face elimination of the 30-day retroactive election.

Before the Tax Cuts and Jobs Act of 2017 (the Act), if a foreign corporation (FC) wasn’t a controlled foreign corporation (CFC) for an uninterrupted period of at least 30 days during the tax year, it didn’t qualify as a CFC. Hence, certain passive income wouldn’t be classified as Subpart F income for U.S. shareholders (for example, U.S.-based children of a non-resident non-citizen (NCNR)). The Act eliminated the 30-day rule for tax years beginning after 2017.

All access premium subscription

Your subscription will include 12 months of Trusts & Estates magazine and access to premium content on

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.