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Muotokuva 5472 Ohjeita

Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a US Trade or Business

Tammikuu 2024

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  • Muotokuva 5472 - 25 % ulkomaalaisomisteisesta yhdysvaltalaisesta yhtiöstä tai ulkomaisesta yhtiöstä, joka on sitoutunut Yhdysvaltain kauppaan tai liiketoimintaan
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Department of the Treasury  
Internal Revenue Service  
Instructions for Form 5472  
Information Return of a 25% Foreign-Owned U.S. Corporation  
or a Foreign Corporation Engaged in a U.S. Trade or Business  
(Rev. January 2024)  
Section references are to the Internal  
Revenue Code unless otherwise noted.  
A 25% foreign-owned U.S.  
707(b)(1)) to the reporting  
corporation,  
corporation (including a  
foreign-owned U.S. disregarded entity  
(DE)), or  
Any person who is related (within  
Future Developments  
the meaning of section 267(b) or  
707(b)(1)) to a 25% foreign  
shareholder of the reporting  
corporation, or  
For the latest information about  
developments related to Form 5472  
and its instructions, such as legislation  
enacted after they were published, go  
A foreign corporation engaged in a  
trade or business within the United  
States.  
Any other person who is related to  
25% foreign owned. A corporation  
is 25% foreign owned if it has at least  
one direct or indirect 25% foreign  
shareholder at any time during the tax  
year.  
the reporting corporation within the  
meaning of section 482 and the  
related regulations.  
What's New  
“Related party” does not include  
any corporation filing a consolidated  
federal income tax return with the  
reporting corporation.  
The rules in section 318 apply to  
the definition of related party with the  
modifications listed under the  
definition of 25% foreign shareholder,  
earlier.  
Part VII, line 39. On Form 5472, if  
the answer to the question on line 39  
is yes, filers are reminded to complete  
Part VIII.  
25% foreign shareholder.  
Generally, a foreign person (defined  
later) is a 25% foreign shareholder if  
the person owns, directly or indirectly,  
at least 25% of either:  
Part VII, line 41a. On Form 5472, the  
term "foreign corporation" was  
changed to "foreign related party" on  
line 41a. In these instructions,  
The total voting power of all classes  
of stock entitled to vote, or  
corresponding changes have been  
made to the Part VII instructions.  
The total value of all classes of  
stock of the corporation.  
Reportable transaction. A  
reportable transaction is:  
Part VII, lines 42a and 42b. On  
Form 5472, former line 42 was  
deleted and replaced with new  
questions 42a and 42b to better  
reflect Regulations section 1.482-2(a)  
(2)(iii)(B). In these instructions,  
corresponding changes have been  
made to the Part VII instructions.  
Part VII, line 43a. On Form 5472,  
changes were made to line 43a for  
purposes of clarification. In these  
instructions, corresponding changes  
have been made to the Part VII  
instructions.  
The constructive ownership rules of  
section 318 apply with the following  
modifications to determine if a  
corporation is 25% foreign owned.  
Substitute “10%” for “50%” in section  
318(a)(2)(C). Do not apply sections  
318(a)(3)(A), (B), and (C), so as to  
consider a U.S. person as owning  
stock that is owned by a foreign  
person.  
Any type of transaction listed in Part  
IV (for example, sales, rents, etc.) for  
which monetary consideration  
(including U.S. and foreign currency)  
was the sole consideration paid or  
received during the reporting  
corporation’s tax year;  
Any transaction listed in Part V; or  
Any transaction or group of  
transactions listed in Part VI.  
Direct 25% foreign shareholder.  
A foreign person is a direct 25%  
foreign shareholder if it owns directly  
at least 25% of the stock of the  
Transactions with a U.S. related  
party, however, are not required to be  
specifically identified in Parts IV, V,  
and VI.  
reporting corporation by vote or value.  
Part VII, line 48b. On Form 5472,  
changes were made to line 48b for  
purposes of clarification.  
Foreign person. A foreign person is:  
Ultimate indirect 25% foreign  
shareholder. An ultimate indirect  
25% foreign shareholder is a 25%  
foreign shareholder whose ownership  
of stock of the reporting corporation is  
not attributed (under the principles of  
sections 958(a)(1) and (2)) to any  
other 25% foreign shareholder. See  
Rev. Proc. 91-55, 1991-2 C.B. 784.  
An individual who is not a citizen or  
resident of the United States;  
An individual who is a citizen or  
General Instructions  
resident of a U.S. possession who is  
not otherwise a citizen or resident of  
the United States;  
Purpose of Form  
Use Form 5472 to provide information  
required under sections 6038A and  
6038C when reportable transactions  
occur during the tax year of a  
Any partnership, association,  
company, or corporation that is not  
created or organized in the United  
States;  
Related party. A related party is:  
reporting corporation with a foreign or  
domestic related party.  
Any foreign estate or foreign trust  
Any direct or indirect 25% foreign  
described in section 7701(a)(31); or  
shareholder of the reporting  
corporation,  
Any foreign government (or agency  
Definitions  
or instrumentality thereof) to the  
extent that the foreign government is  
engaged in the conduct of a  
Any person who is related (within  
the meaning of section 267(b) or  
Reporting corporation. A reporting  
corporation is either:  
Dec 14, 2023  
Cat. No. 59641T  
   
commercial activity, as defined in  
section 892.  
However, the term “foreign person”  
does not include any foreign person  
who consents to the filing of a joint  
income tax return.  
4. It is a foreign corporation that  
does not have a permanent  
section 6038A, it will now be required  
to file a pro forma Form 1120 with  
Form 5472 attached by the due date  
(including extensions) of that Form  
1120. The only information required  
to be completed on Form 1120 is the  
name and address of the  
establishment in the United States  
under an applicable income tax treaty  
and timely files Form 8833.  
5. It is a foreign corporation all of  
whose gross income is exempt from  
taxation under section 883 and it  
timely and fully complies with the  
reporting requirements of sections  
883 and 887.  
6. Both the reporting corporation  
and the related party are not U.S.  
persons, as defined in section 7701(a)  
(30) and the transactions will not  
generate in any tax year:  
Disregarded entity (DE). A DE is an  
entity that is disregarded as an entity  
separate from its owner for U.S.  
income tax purposes under  
foreign-owned U.S. DE and items B  
and E on the first page. The  
foreign-owned U.S. DE has the same  
tax year used by its owner for U.S. tax  
filing requirements or, if none, the  
calendar year.  
Regulations sections 301.7701-2 and  
301.7701-3. See the instructions for  
Form 8832.  
Dedicated mailing address.  
Foreign-owned U.S. DEs are required  
to use the following dedicated mailing  
address. These filers do not use the  
mailing address provided in the  
Instructions for Form 1120.  
Foreign-owned U.S. DE. A  
foreign-owned U.S. DE is a domestic  
DE that is wholly owned by a foreign  
person. For tax years beginning on or  
after January 1, 2017, and ending on  
or after December 13, 2017, a  
foreign-owned U.S. DE is treated as  
an entity separate from its owner and  
classified as a corporation for the  
limited purposes of the requirements  
under section 6038A that apply to  
25% foreign-owned domestic  
Gross income from sources within  
the United States or income  
effectively connected, or treated as  
effectively connected, with the  
conduct of a trade or business within  
the United States; or  
Note. “Foreign-owned U.S. DE”  
should be written across the top of the  
Form 1120. File these forms by:  
Any expense, loss, or other  
Fax (300 DPI or higher) to  
deduction that is allocable or  
apportionable to such income.  
855-887-7737, or  
Mail to:  
corporations. See the final regulations  
Note. Exception 6 does not apply to  
Internal Revenue Service  
1973 Rulon White Blvd  
M/S 6112 Attn: PIN Unit  
Ogden, UT 84201  
foreign-owned U.S. DEs.  
Consolidated returns. If a reporting  
corporation is a member of an  
Who Must File  
Generally, a reporting corporation  
must file Form 5472 if it had a  
reportable transaction with a foreign  
or domestic related party.  
affiliated group filing a consolidated  
income tax return, Regulations section  
1.6038A-2 may be satisfied by filing a  
U.S. consolidated Form 5472. The  
common parent must attach to Form  
5472 a schedule stating which  
Foreign-owned U.S. DEs are  
required to use the special  
!
CAUTION  
mailing address, as  
mentioned earlier. These filers do not  
use the mailing addresses provided in  
the Instructions for Form 1120.  
Exceptions from filing. A reporting  
corporation is not required to file Form  
5472 if any of the following apply.  
members of the U.S. affiliated group  
are reporting corporations under  
section 6038A, and which of those  
members are joining in the  
1. It had no reportable  
Extension of time to file. A  
transactions of the types listed in  
Parts IV and VI of the form and, in the  
case of a reporting corporation that is  
a foreign-owned U.S. DE, also had no  
reportable transactions of the type  
listed in Part V of the form.  
foreign-owned U.S. DE required to file  
Form 5472 can request an extension  
of time to file by filing Form 7004. The  
DE must file Form 7004 by the regular  
due date of the return. Because the  
Form 5472 of a DE must be attached  
to a pro forma Form 1120, the code  
for Form 1120 should be entered on  
Form 7004, Part I, line 1.  
consolidated filing of Form 5472. The  
schedule must show the name,  
address, and employer identification  
number (EIN) of each member who is  
including transactions on the  
2. A U.S. person that controls the  
foreign related corporation files Form  
5471 for the tax year to report  
consolidated Form 5472.  
Note. A member is not required to  
join in filing a consolidated Form 5472  
just because the other members of  
the group choose to file one or more  
Forms 5472 on a consolidated basis.  
“Foreign-owned U.S. DE” should be  
written across the top of Form 7004.  
information under section 6038. To  
qualify for this exception, the U.S.  
person must complete Schedule M  
(Form 5471) showing all reportable  
transactions between the reporting  
corporation and the related party for  
the tax year. This exception does not  
apply to foreign-owned U.S. DEs.  
The DE must fax or mail the Form  
7004 to the fax number or mailing  
address identified earlier, by the due  
date (excluding extensions) of the  
return. For these entities, do not use  
the regular filing address listed in the  
Instructions for Form 7004.  
When and Where To File  
File Form 5472 as an attachment to  
the reporting corporation's income tax  
return by the due date (including  
extensions) of that return.  
3. The related corporation  
qualifies as a foreign sales  
For further general information, see  
corporation for the tax year and files  
Form 1120-FSC. This exception does  
not apply to foreign-owned U.S. DEs.  
Foreign-owned U.S. DEs. While a  
foreign-owned U.S. DE has no income  
tax return filing requirement, as a  
result of final regulations under  
the Instructions for Form 7004.  
Instructions for Form 5472 (Rev. 1-2024)  
2
   
line 1f if the reportable transaction is  
with a U.S. related party.  
Electronic Filing of Form  
5472  
Record Maintenance  
Requirements  
Line 1g. File a separate Form 5472  
for each foreign or U.S. person who is  
a related party with which the  
If you file your income tax return  
electronically, see the instructions for  
your income tax return for general  
information about electronic filing.  
A reporting corporation must keep the  
permanent books of account or  
records as required by section 6001.  
These books must be sufficient to  
establish the correctness of the  
reporting corporation had a reportable  
transaction. Enter the total number of  
Forms 5472 (including this one) being  
filed for the tax year.  
If you are a foreign-owned  
reporting corporation’s federal income  
tax return, including information or  
records that might be relevant to  
determine the correct treatment of  
transactions with related parties. See  
Regulations section 1.6038A-3 for  
more detailed information. Also, see  
Regulations sections 1.6038A-1(h)  
and 1.6038A-1(i) for special rules that  
apply to small corporations and  
U.S. DE, you cannot file Form  
!
CAUTION  
5472 electronically. See  
Line 1h. Enter the total value in U.S.  
dollars of all foreign related party  
transactions reported in Parts IV and  
VI (and if the reporting corporation is a  
foreign-owned U.S. DE, Part V) of all  
Forms 5472 filed for the tax year. This  
is the total of the amounts entered on  
line 1f of all Forms 5472 filed for the  
tax year (including this one).  
and Where To File, earlier, for  
acceptable methods of filing.  
Accrued Payments and  
Receipts  
A reporting corporation that uses an  
accrual method of accounting must  
use accrued payments and accrued  
receipts for purposes of computing  
the total amount to enter on each line  
of Form 5472. See Regulations  
section 1.6038A-2(b)(10).  
reporting corporations with related  
party transactions of de minimis value.  
Line 1j. Check the box if this is the  
first year the U.S. reporting  
Specific Instructions  
corporation has filed a Form 5472.  
Line 1k. Complete Part VIII for each  
cost sharing arrangement (CSA) and  
enter the total number of Parts VIII  
attached to Form 5472 on line 1k.  
Line 1o. Provide the principal  
country(ies) where business is  
conducted. Do not include any  
country(ies) in which business is  
conducted solely through a subsidiary.  
Do not enter “worldwide” instead of  
listing the country(ies). These rules  
also apply to lines 5c, 6c, and 7c of  
Part II, and line 8f of Part III.  
Part I—Reporting  
Corporation  
Penalties  
Penalties for failure to file Form  
5472. A penalty of $25,000 will be  
assessed on any reporting  
Line 1a. Address. Include the suite,  
room, or other unit number after the  
street address. If the post office does  
not deliver mail to the street address  
and the corporation has a P.O. box,  
show the box number instead.  
corporation that fails to file Form 5472  
when due and in the manner  
prescribed. The penalty also applies  
for failure to maintain records as  
required by Regulations section  
1.6038A-3.  
Foreign address. Enter the  
information in the following order: city,  
province or state, and country. Follow  
the country’s practice for entering the  
postal code, if any. Do not abbreviate  
the country name.  
Line 1c. Total assets. Domestic  
reporting corporations enter the total  
assets from Form 1120, page 1, item  
D. Foreign reporting corporations  
enter the amount from Form 1120-F,  
Schedule L, line 17, column (d).  
Note. Filing a substantially  
incomplete Form 5472 constitutes a  
failure to file Form 5472.  
Line 2. For purposes of this line:  
Foreign person has the same  
meaning as provided earlier under  
Each member of a group of  
Definitions; and  
corporations filing a consolidated  
information return is a separate  
reporting corporation subject to a  
separate $25,000 penalty and each  
member is jointly and severally liable.  
50% direct or indirect ownership is  
determined by applying the  
constructive ownership rules of  
section 318 with the modifications  
listed under the definition of 25%  
foreign shareholder, earlier.  
Lines 1d and 1e. Enter a description  
of the principal business activity and  
enter the principal business activity  
code. See the Instructions for Form  
1120 or the Instructions for Form  
If the failure continues for more  
than 90 days after notification by the  
IRS, an additional penalty of $25,000  
will apply. This penalty applies with  
respect to each related party for which  
a failure occurs for each 30-day period  
(or part of a 30-day period) during  
which the failure continues after the  
90-day period ends.  
Criminal penalties under sections  
7203, 7206, and 7207 may also apply  
for failure to submit information or for  
filing false or fraudulent information.  
Line 3. Check this box if you are a  
Part II—25% Foreign  
1120-F for a list of principal business  
activities and their associated codes.  
Shareholder  
Note. Only 25% foreign-owned U.S.  
corporations, including foreign-owned  
U.S. DEs, complete Part II. For a  
foreign-owned U.S. DE, report the  
information for the foreign owner on  
the lines provided for the 25% foreign  
shareholder.  
Line 1f. Enter the total value in U.S.  
dollars of all foreign related party  
transactions reported in Parts IV and  
VI (and if the reporting corporation is a  
foreign-owned U.S. DE, Part V) of this  
Form 5472. This is the total of the  
amounts entered on lines 22 and 36 of  
Part IV plus the fair market value  
The form provides sufficient space  
to report information for two direct  
25% foreign shareholders and two  
ultimate indirect 25% foreign  
(FMV) of the nonmonetary and less  
than full consideration transactions  
reported in Part VI. Do not complete  
Instructions for Form 5472 (Rev. 1-2024)  
3
shareholders. If more space is  
needed, show the information  
requested in Part II on an attached  
sheet.  
Reference ID number. A  
In the case of an entity  
reference ID number is a number  
established by or on behalf of the  
reporting corporation identified in Part  
I that is assigned to 25% foreign  
shareholders and/or related foreign  
parties with respect to which Form  
5472 reporting is required. These  
numbers are used to uniquely identify  
classification election that is made on  
behalf of a 25% foreign shareholder or  
related foreign party on Form 8832,  
Regulations section 301.6109-1(b)(2)  
(v) requires the 25% foreign  
Report on lines 4a through 4e  
information about the direct 25%  
foreign shareholder who owns (by  
vote or value) the largest percentage  
of the stock of the U.S. reporting  
corporation.  
shareholder or related foreign party to  
have an EIN for this election. For the  
first tax year that Form 5472 is filed  
the 25% foreign shareholder or related after an entity classification election is  
foreign party in order to keep track of  
such foreign person from tax year to  
tax year. The reference ID number  
must meet the requirements set forth  
later.  
made on behalf of the 25% foreign  
shareholder or related foreign party on  
Form 8832, the new EIN must be  
entered in the applicable entry space  
in Part II or Part III and the old  
Report on lines 5a through 5e  
information about the direct 25%  
foreign shareholder who owns (by  
vote or value) the second largest  
percentage of the stock of the U.S.  
reporting corporation.  
reference ID number must be entered  
in the applicable entry space to the  
right. In subsequent years, the Form  
5472 filer may continue to enter both  
the EIN and the reference ID number,  
but must enter at least the EIN.  
Note. Because reference ID numbers  
are established by or on behalf of the  
reporting corporation filing Form 5472,  
there is no need to apply to the IRS to  
request a reference ID number or for  
permission to use these numbers.  
Report on lines 6a through 6e  
information about the ultimate indirect  
25% foreign shareholder who owns  
(by vote or value) the largest  
You must correlate the reference ID  
percentage of the stock of the U.S.  
reporting corporation.  
numbers as follows.  
Requirements. The reference ID  
number that is entered must be  
alphanumeric (defined later), and no  
special characters or spaces are  
permitted. The length of a given  
reference ID number is limited to 50  
characters.  
For these purposes, the term  
“alphanumeric” means the entry can  
be alphabetical, numeric, or any  
combination of the two.  
New reference ID number [space]  
Old reference ID number.  
Report on lines 7a through 7e  
information about the ultimate indirect  
25% foreign shareholder who owns  
(by vote or value) the second largest  
percentage of the stock of the U.S.  
reporting corporation.  
Part II, heading. Check the box if  
any direct or indirect 25% foreign  
shareholder identified in Part II is a  
surrogate foreign corporation, as  
defined in section 7874(a)(2)(B)  
resulting from an inversion in the  
current year or in the previous 10  
years.  
If there is more than one old  
reference ID number, you must enter a  
space between each such number.  
As indicated earlier, the length of a  
given reference ID number is limited to  
50 characters and each number must  
be alphanumeric and no special  
characters are permitted.  
The same reference ID number  
must be used consistently from tax  
year to tax year with respect to a given  
25% foreign shareholder or related  
foreign party. If for any reason a  
Note. This correlation requirement  
applies only to the first year the new  
reference ID number is used.  
Lines 4b(3), 5b(3), 6b(3), and  
7b(3). A foreign-owned U.S. DE  
must enter a foreign taxpayer  
reference ID number falls out of use  
(for example, the 25% foreign  
Lines 4b(1), 5b(1), 6b(1), and  
7b(1). For each 25% foreign  
identification number (FTIN), if any, for  
each direct and ultimate foreign owner  
listed in Part II. If a foreign-owned U.S.  
DE has, as a direct owner, a foreign  
DE, report that foreign DE as the  
direct owner. The FTIN should be  
used consistently on an annual basis  
when filing Form 5472, as an EIN or  
reference ID number would be used. If  
you do not have an FTIN, enter  
“None” or “N/A” in the FTIN block. If  
you have a U.S. identifying number  
and/or reference ID number, you can  
enter it in the appropriate block, as  
discussed earlier.  
Filers of Form 5472, other than  
foreign-owned U.S. DEs, can enter an  
FTIN on these lines. However, they  
must also enter a U.S. identifying  
number or reference ID number on  
lines 4b(1)/7b(1) or 4b(2)/7b(2),  
respectively. If you are not a  
shareholder or related foreign party no  
longer exists due to disposition or  
liquidation), the reference ID number  
used for such foreign person cannot  
be used again for another 25% foreign  
shareholder or related foreign party for  
purposes of Form 5472 reporting.  
shareholder listed in Part II, enter the  
shareholder's U.S. identifying number,  
if any. Individuals should enter a social  
security number (SSN), or an  
individual taxpayer identification  
number (ITIN) issued by the IRS. All  
other entities should enter an EIN.  
There are some situations that  
warrant correlation of a new reference  
ID number with a previous reference  
ID number when assigning a new  
reference ID number to a 25% foreign  
shareholder or related foreign party.  
Lines 4b(2), 5b(2), 6b(2), and  
7b(2). For each 25% foreign  
shareholder listed in Part II, enter the  
shareholder's reference ID number, if  
required. A reference ID number is  
required only in cases where no U.S.  
identifying number was entered for the  
shareholder on the preceding line  
(line 4b(1), 5b(1), 6b(1), or 7b(1),  
respectively). However, filers are  
permitted to enter both an EIN and a  
reference ID number. If applicable,  
For example, in the case of a  
merger or acquisition involving a 25%  
foreign shareholder or related foreign  
party, a Form 5472 filer must use a  
reference ID number that correlates  
the previous reference ID number with  
the new reference ID number  
assigned to the 25% foreign  
(defined later) you have assigned to  
the 25% foreign shareholder.  
shareholder or related foreign party.  
Instructions for Form 5472 (Rev. 1-2024)  
4
   
foreign-owned U.S. DE, and do not  
have an FTIN, leave the block blank.  
does not apply if the reporting  
Note. The term “cost sharing  
corporation owns a less-than-25%  
interest in the partnership. The rules  
of attribution apply when determining  
transaction” is not limited to  
transactions that occurred on or after  
January 5, 2009, or transactions that  
Lines 6a–6e and lines 7a–7e.  
Attach an explanation of the attribution  
of ownership. See Rev. Proc. 91-55,  
and Regulations section  
the reporting corporation’s percentage occur according to a CSA that was not  
of partnership interest.  
in effect before January 5, 2009. See  
Regulations sections 1.482-7(m)(1)  
and (m)(2)(i).  
1.6038A-1(e).  
Reasonable estimates. When  
actual amounts are not determinable,  
enter reasonable estimates  
Part III—Related Party  
Line 17. Amounts borrowed.  
Report amounts borrowed (including  
borrowings in place at the beginning  
of the tax year) using either the  
outstanding balance method or the  
monthly average method. If the  
outstanding balance method is used,  
enter the beginning and ending  
outstanding balances for the tax year  
on lines 17a and 17b. If the monthly  
average method is used, skip line 17a  
and enter the monthly average for the  
tax year on line 17b.  
Line 21. Other amounts received.  
Enter amounts received that are not  
specifically reported on lines 9  
through 20. Include amounts on  
line 21 to the extent that these  
amounts are taken into account in  
determining the taxable income of the  
reporting corporation.  
(discussed later) of the total dollar  
amount of each of the categories of  
transactions conducted between the  
reporting corporation and the related  
person in which monetary  
All filers must complete Part III even if  
the related party has been identified in  
Part II as a 25% foreign shareholder.  
Report in Part III information about the  
related party (domestic or foreign)  
with which the reporting corporation  
had reportable transactions during the  
tax year.  
consideration (U.S. currency or  
foreign currency) was the sole  
consideration paid or received during  
the tax year of the reporting  
Line 8b(1). Enter the related party's  
U.S. identifying number, if any. For  
individuals, enter an SSN, or an ITIN  
issued by the IRS. For all other  
entities, enter an EIN.  
corporation.  
A reasonable estimate is any  
amount reported on Form 5472 that is  
at least 75% but not more than 125%  
of the actual amount required to be  
reported.  
Line 8b(2). If the related party is a  
foreign person, enter the related  
party's reference ID number, if  
required. A reference ID number is  
required only in cases where no U.S.  
identifying number was entered for the  
foreign related party on line 8b(1).  
However, filers are permitted to enter  
both an EIN and a reference ID  
number. If applicable, enter the  
reference ID number you have  
assigned to the foreign related party.  
See Reference ID number, earlier, for  
more information.  
Small amounts. If any actual amount  
in a transaction or a series of  
transactions between a foreign related  
party and the reporting corporation  
does not exceed a total of $50,000,  
the amount may be reported as  
“$50,000 or less.”  
Line 31. Amounts loaned. Report  
amounts loaned (including loans in  
place at the beginning of the tax year)  
using either the outstanding balance  
method or the monthly average  
Lines 11 and 25. Report on these  
lines platform contribution transaction  
payments received and paid by the  
reporting corporation (without giving  
effect to any netting of payments due  
and owed). See Regulations section  
1.482-7(b)(1)(ii).  
method. If the outstanding balance  
method is used, enter the beginning  
and ending outstanding balances for  
the tax year on lines 31a and 31b. If  
the monthly average method is used,  
skip line 31a and enter the monthly  
average for the tax year on line 31b.  
Part IV—Monetary  
Transactions Between  
Reporting Corporations  
and Foreign Related Party  
Note. The term “platform contribution  
transaction” is not limited to  
transactions that occurred on or after  
January 5, 2009, or transactions that  
occur according to a CSA that was not  
in effect before January 5, 2009. See  
Regulations sections 1.482-7(m)(1)  
and (m)(2)(i).  
Line 32. Interest paid. Report the  
amount of interest paid or accrued. If  
the amount of interest paid or accrued  
is subject to the limitation of section  
163(j), report only the amount allowed  
as a deduction under that section. For  
more information, see the Instructions  
for Form 8990. Any amounts accrued  
or paid in excess of the amount  
Note. Do not complete Part IV for  
transactions with a domestic related  
party.  
When completing Part IV or Part VI,  
the terms “paid” and “received”  
include accrued payments and  
accrued receipts.  
Lines 12 and 26. Report on these  
lines cost sharing transaction  
payments received and paid by the  
reporting corporation (without giving  
effect to any netting of payments).  
See Regulations section 1.482-7(b)(1)  
(i). The corporation is required to  
complete line 12 only if the  
allowed as a deduction under section  
163(j) will be treated as interest paid  
or accrued in a subsequent year and  
are required to be reported on this line  
in the year the deferred amount is  
allowed as a deduction.  
State all amounts in U.S. dollars  
and attach a schedule showing the  
exchange rates used.  
If the related party transactions  
occur between a related party and a  
partnership that is, in whole or in part,  
owned by a reporting corporation, the  
reporting corporation reports only the  
percentage of the value of the  
corporation itself incurred intangible  
development costs (IDCs). If the  
corporation does not itself incur IDCs,  
then it should only report cost sharing  
transaction payments made on  
line 26.  
Line 35. Other amounts paid. Enter  
amounts paid that are not specifically  
reported on lines 23 through 34.  
Include amounts on line 35 to the  
extent that these amounts are taken  
transaction(s) equal to the percentage  
of its partnership interest. This rule  
Instructions for Form 5472 (Rev. 1-2024)  
5
 
into account in determining the  
taxable income of the reporting  
corporation.  
See the instructions for Part IV,  
earlier, for information on reasonable  
estimates and small amounts.  
Extent to which deduction is  
disallowed. When section 267A  
applies to interest or royalty paid or  
accrued pursuant to a hybrid  
Part V—Reportable  
Transactions of a  
Reporting Corporation  
That Is a Foreign-Owned  
U.S. DE  
Part VII—Additional  
Information  
arrangement, it generally disallows a  
deduction for the amount to the extent  
that, under the foreign tax law, there is  
not a corresponding income inclusion  
(including long-term deferral).  
All reporting corporations  
must complete the additional  
!
CAUTION  
information in Part VII.  
However, the deduction is not  
disallowed to the extent the amount is  
directly or indirectly included in  
income in the United States, such as if  
the amount is taken into account with  
respect to a U.S. shareholder under  
section 951(a) or section 951A. For  
additional information, see  
You must check the box in Part V if  
you are a foreign-owned DE that had  
any other transaction, as defined by  
Regulations section 1.482-1(i)(7) not  
already entered in Part IV. These  
transactions include amounts paid or  
received in connection with the  
formation, dissolution, acquisition,  
and disposition of the entity, including  
contributions to, and distributions  
from, the entity. Describe these on an  
attached statement.  
Lines 40a and 40b. Section 267A  
disallows a deduction for certain  
interest or royalty paid or accrued  
pursuant to a hybrid arrangement, to  
the extent that, under the foreign tax  
law, there is not a corresponding  
income inclusion (including long-term  
deferral). Report on line 40b the total  
amount of interest and royalty paid or  
accrued by the reporting corporation  
(including, in the case of a reporting  
corporation that is a partner of a  
partnership, the reporting  
Regulations sections 1.267A-2  
through 1.267A-4. For examples  
illustrating the application of section  
267A, see Regulations section  
1.267A-7.  
Lines 41a–41d. Check the “Yes” box  
on line 41a if the filer of this Form  
5472 is claiming a deduction under  
section 250 with respect to  
Part VI—Nonmonetary and  
Less-Than-Full  
corporation’s allocable share of  
interest or royalty paid or accrued by  
the partnership) for which a deduction  
is disallowed under section 267A.  
Consideration  
foreign-derived intangible income  
(FDII) derived from any transaction  
with the foreign related party and  
enter those amounts as requested on  
lines 41b through 41d. State all  
amounts in U.S. dollars and attach a  
schedule showing the exchange rates  
used. With respect to lines 41b and  
41c, the term “sales” includes any  
lease, license, sublicense, exchange,  
or other disposition of property. See  
Regulations section 1.250(b)-3(b)  
(16).  
If the filer of this Form 5472 is not  
claiming a deduction under section  
250 with respect to FDII derived from  
any transaction with the foreign  
related party, check the “No” box on  
line 41a and skip lines 41b through  
41d.  
Transactions Between the  
Reporting Corporation and  
the Foreign Related Party  
Payments to which section 267A  
applies. Interest or royalty paid or  
accrued by the reporting corporation  
(including through a partnership) is  
subject to section 267A. Section 267A  
generally applies to interest or royalty  
paid or accrued pursuant to a hybrid  
arrangement (such as, for example, a  
payment pursuant to a hybrid  
Note. Do not complete Part VI for  
transactions with a domestic related  
party.  
If the related party is a foreign  
person, the reporting corporation must  
attach a schedule describing each  
reportable transaction or group of  
reportable transactions. The  
instrument, or a payment to a reverse  
hybrid), provided that the payment or  
accrual is to a related party (or  
description must include sufficient  
information so that the nature and  
approximate monetary value of the  
transaction or group of transactions  
can be determined. The schedule  
should include:  
pursuant to a structured  
arrangement). In addition, pursuant to  
an imported mismatch rule, section  
267A generally applies to interest or  
royalty paid or accrued pursuant to a  
non-hybrid arrangement where the  
income attributable to that payment or  
accrual is directly or indirectly offset  
by certain deductions involving  
1. A description of all property  
(including monetary consideration),  
rights, or obligations transferred from  
the reporting corporation to the foreign  
related party and from the foreign  
related party to the reporting  
corporation;  
See Form 8993 and its instructions  
for information on the section 250  
deduction.  
hybridity incurred by a related party or  
pursuant to a structured arrangement.  
However, section 267A does not apply  
if a de minimis exception is satisfied.  
See Regulations section 1.267A-1(c).  
For purposes of section 267A, interest  
and royalty are defined broadly. For  
additional information about  
Line 42a. Check the “Yes” box if,  
during the tax year, the reporting  
corporation had any loans to or from  
the related party to which the  
safe-haven rate rules of Regulations  
section 1.482-2(a)(2)(iii)(B) are  
applicable, and for which the reporting  
corporation used a rate of interest  
within the relevant safe-haven range  
(100% to 130% of the Applicable  
Federal Rate (AFR) for the relevant  
term).  
2. A description of all services  
performed by the reporting  
corporation for the foreign related  
party and by the foreign related party  
for the reporting corporation; and  
arrangements subject to section  
267A, see Regulations sections  
1.267A-2 and 1.267A-4. Also see the  
anti-avoidance rule under Regulations  
section 1.267A-5(b)(6).  
3. A reasonable estimate of the  
FMV of all properties and services  
exchanged, if possible, or some other  
reasonable indicator of value.  
Instructions for Form 5472 (Rev. 1-2024)  
6
the property exchanged for the debt  
instruments), and of the distributions  
and/or acquisitions described in  
Regulations section 1.385-3(b)(3)(i)  
(as measured by the FMV of the  
property distributed and/or acquired).  
compensation is directly identified  
with, or reasonably allocable to, the  
intangible development activity (IDA)  
under the CSA. See Regulations  
section 1.482-7(d)(3) and Notice  
2005-99 for more information on  
determining the measurement and  
timing of stock-based compensation  
IDCs, including an election available  
with respect to options on publicly  
traded stock and certain other  
Line 42b. Check the "Yes" box if  
during the tax year the reporting  
corporation had any loans to or from  
the related party to which the  
safe-haven rate rules of Regulations  
section 1.482-2(a)(2)(iii)(B) are  
applicable, and for which the reporting  
corporation used a rate of interest  
outside the relevant safe-haven range  
(100% to 130% of the AFR for the  
relevant term).  
Line 43b(2). Provide the total  
amount (as measured by issue price  
in the case of an instrument treated as  
stock upon issuance, or adjusted  
issue price in the case of an  
stock-based compensation. If the  
taxpayer made the election described  
in Regulations section 1.482-7(d)(3)  
(iii)(B) or Notice 2005-99, the taxpayer  
should attach a statement to Form  
5472 explaining that the taxpayer  
made such election and include in  
such statement the total amount of  
stock-based compensation taken into  
account as an IDC for the tax year  
pursuant to such election. If the  
taxpayer attaches the statement  
described in the previous sentence,  
then in the entry space provided for  
line 48b the taxpayer should include  
the total amount of stock-based  
compensation taken into account as  
an IDC, including stock-based  
instrument deemed exchanged for  
stock) of the debt instrument  
Lines 43a and 43b  
issuances addressed by line 43a. See  
Regulations sections 1.385-1(d)(1)  
and 1.385-3(d). The adjusted issue  
price of a debt instrument is the issue  
price increased by the amount of  
original issue discount previously  
includible in gross income of any  
holder and decreased by payments  
other than payments of qualified  
stated interest. See section 1272(a)  
(4) and Regulations section  
Note. Complete lines 43a, 43b(1),  
and 43b(2) only if the reporting  
corporation is a domestic corporation.  
(Do not complete these lines if the  
reporting corporation is a  
foreign-owned U.S. DE.) In completing  
these lines, do not account for debt  
instruments that were issued, or  
distributions or acquisitions that  
occurred, before April 5, 2016. See  
Regulations sections 1.385-3(g)(3)  
and (b)(3)(viii).  
1.1275-1(b)(1).  
Line 43a. Check the “Yes” box if the  
reporting corporation issued a  
Part VIII—Cost Sharing  
Arrangement (CSA)  
covered debt instrument in any of the  
transactions described in Regulations  
section 1.385-3(b)(2) during the tax  
year with respect to a related party  
that is a corporation. Also check “Yes”  
if the reporting corporation issued or  
refinanced indebtedness owed to a  
related party that is a corporation  
during the 36 months before or after  
the date of a distribution or acquisition  
described in Regulations section  
1.385-3(b)(3)(i) made by the reporting  
corporation, and either the issuance  
or refinance of indebtedness, or the  
distribution or acquisition, occurred  
during the tax year. Otherwise, check  
“No.” Apply Regulations section  
1.385-3(b)(3)(iii)(E) to determine  
when a debt instrument is treated as  
issued for purposes of Regulations  
section 1.385-3(b)(3)(iii). Apply  
Note. A separate Part VIII must be  
filed for each CSA, as defined in  
Regulations section 1.482-7(b) in  
which the reporting corporation was a  
controlled participant (as defined in  
Regulations section 1.482-7(j)) during  
the tax year.  
compensation pursuant to the election  
described above and any not subject  
to such election.  
Check the appropriate box on  
line 48c to indicate whether any  
stock-based compensation was  
granted during the term of the CSA to  
individuals who performed functions  
in business activities that generate  
cost shared intangibles that was not  
treated as directly identified with, or  
reasonably allocable to, the IDA, as  
defined in Regulations section  
All amounts should be reported in  
U.S. dollars.  
Line 44. Provide a brief description of  
the CSA, including the industry and  
intangibles involved, and sufficient  
detail to distinguish the CSA from any  
other CSAs in which the reporting  
corporation is a controlled participant.  
1.482-7(d)(1)(i). This would include  
stock-based compensation granted in  
earlier years (which could give rise to  
deductions in the current tax year) that  
were not treated as identified with, or  
reasonably allocable to, the IDA.  
Line 47. Enter the reporting  
corporation’s share of reasonably  
anticipated benefits (RAB) for the  
CSA during the tax year. See  
Lines 49a and 49b. For the tax year,  
enter the total amount of IDCs for the  
CSA on line 49a. See Regulations  
section 1.482-7(d) for more  
Regulations section 1.482-7(e) for  
rules on determining and updating a  
controlled participant’s RAB share. If  
the reporting corporation applied more  
than one RAB share during the tax  
year in determining its share of IDCs,  
enter the RAB share that was applied  
to IDCs incurred at the end of the  
year. See Regulations section  
1.482-7(d) for more information on  
IDCs.  
Regulations section 1.385-3(f) in the  
case of a controlled partnership within  
the meaning of Regulations section  
1.385-1(c)(1).  
Debt that the reporting corporation  
treats as stock pursuant to  
Regulations section 1.385-3 still  
should be included when completing  
line 43a.  
information on IDCs. On line 49b,  
enter the amount of IDCs allocable to  
the reporting corporation for the tax  
year based on the reporting  
corporation’s RAB share.  
Line 43b(1). Provide the total  
amount of the transactions described  
in Regulations section 1.385-3(b)(2)  
(as measured by the FMV of the  
distributions or, as the case may be, of  
Lines 48b and 48c. See Regulations  
section 1.482-7 for more information  
on determining whether stock-based  
Instructions for Form 5472 (Rev. 1-2024)  
7
(B) and Regulations section  
1.59A-3(c) for further details.  
to carry out the Internal Revenue laws  
of the United States. You are required  
to give us the information. We need it  
to ensure that you are complying with  
these laws and to allow us to figure  
and collect the right amount of tax.  
Part IX—Base Erosion  
Payments and Base  
Erosion Tax Benefits  
Under Section 59A  
Line 50. Enter the amount of base  
erosion payments made by the  
reporting corporation (if any). The  
term “base erosion payment”  
The term “base erosion tax benefit”  
also includes certain reductions in  
gross premiums with respect to  
certain reinsurance payments  
described in section 59A(d)(3) and  
Regulations section 1.59A-3(c)(1)(iii)  
and certain reductions in gross  
receipts with respect to certain  
expatriated entities described in  
section 59A(d)(4) and Regulations  
section 1.59A-3(c)(1)(iv).  
You are not required to provide the  
information requested on a form that  
is subject to the Paperwork Reduction  
Act unless the form displays a valid  
OMB control number. Books or  
records relating to a form or its  
instructions must be retained as long  
as their contents may become  
material in the administration of any  
Internal Revenue law. Generally, tax  
returns and return information are  
confidential, as required by section  
6103.  
generally means any amount paid or  
accrued by the reporting corporation  
to a foreign person, which is a related  
party, and with respect to which a  
deduction is allowed under chapter 1  
of the Code. See section 59A(d)(1)  
and Regulations section 1.59A-3(b)(1)  
(i).  
Line 52. Enter the amount of  
qualified derivative payments made by  
the reporting corporation. The term  
“qualified derivative payment”  
Base erosion payments also  
generally means any payment made  
by a taxpayer according to a derivative  
with respect to which the taxpayer:  
include amounts paid or accrued by  
the reporting corporation to a foreign  
related party in connection with the  
acquisition of depreciable or  
The time needed to complete and  
file this form will vary depending on  
individual circumstances. The  
estimated burden for business  
taxpayers filing this form is approved  
under OMB control number  
Recognizes gain or loss as if such  
derivative were sold for its FMV on the  
last business day of the tax year (and  
any additional times required by the  
taxpayer’s method of accounting);  
amortizable property (see section  
59A(d)(2) and Regulations section  
1.59A-3(b)(1)(ii)), certain reinsurance  
payments (see section 59A(d)(3) and  
Treats any gain or loss so  
1545-0123. The estimated burden for  
all other taxpayers who file this form  
is:  
Regulations section 1.59A-3(b)(1)(iii)), recognized as ordinary; and  
and certain payments relating to  
expatriated entities (see section  
59A(d)(4) and Regulations section  
1.59A-3(b)(1)(iv)).  
For additional information about  
base erosion payments, including  
rules for determining the amount paid  
or accrued, and certain exceptions,  
see Regulations section 1.59A-3.  
Line 51. Enter the amount of base  
erosion tax benefits of the reporting  
corporation (if any). The term “base  
erosion tax benefit” generally means  
any deduction that is allowed under  
chapter 1 for the tax year with respect  
to any base erosion payment. See  
sections 59A(c)(2)(A) and 59A(c)(2)  
Treats the character of all items of  
income, deduction, gain, or loss with  
respect to a payment according to the  
derivative as ordinary.  
Recordkeeping .  
Learning about the law  
or the form .  
Preparing and sending  
the form to the IRS  
.
.
.
.
.
.
.
17 hr., 42 min.  
3 hr., 4 min.  
Determine the amount of the  
.
.
.
.
.
.
.
qualified derivative payments after  
combining all items of income, gain,  
loss, or deduction arising with respect  
to the position during the tax year. A  
qualified derivative payment is not a  
base erosion payment or a base  
erosion tax benefit and should not be  
included on Part IX, lines 50 and 51.  
See section 59A(h) and Regulations  
section 1.59A-6 for further details.  
.
.
3 hr., 30 min.  
If you have comments concerning  
the accuracy of these time estimates  
or suggestions for making this form  
simpler, we would be happy to hear  
from you. See the instructions for the  
tax return with which this form is filed.  
Paperwork Reduction Act Notice.  
We ask for the information on this form  
Instructions for Form 5472 (Rev. 1-2024)  
8