All glossary terms
Glossary term
Controlled Foreign Corporation (CFC)
A foreign corporation more than 50 percent owned by U.S. shareholders that triggers Subpart F and GILTI rules.
Related terms
2
Jurisdictions
us
Definition
Under Section 957, a CFC is a foreign corporation in which U.S. shareholders (10 percent or more by vote or value) own more than 50 percent of the stock by vote or value. CFC status triggers Subpart F inclusion under Section 951 and GILTI inclusion under Section 951A.
Examples
- A foreign subsidiary 100 percent owned by a U.S. parent is a CFC subject to Subpart F and GILTI.
Translations
ESCorporación Extranjera Controlada
ZH受控外国公司
DEkontrollierte ausländische Gesellschaft
FRsociété étrangère contrôlée
JA支配外国法人
Citations
26 U.S.C. · 957
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Cited by
Primary sources
- IRS Form 5471Verified 2026-05-20
Important disclaimer
This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.