Sec. 12. (a) As used in this section, the term "foreign source dividend" means a dividend from a foreign corporation. The term:
(1) includes any amount that a taxpayer is required to include in its gross income for a taxable year under Sections 951 and 951A of the Internal Revenue Code, and, for taxable years beginning after December 25, 2016, any amounts required to be included in adjusted gross income under this article after application of IC 6-3-1-3.5(b)(13), IC 6-3-1-3.5(d)(12), and IC 6-3-1-3.5(e)(12), but prior to application of this section; and
(2) does not include any amount that is treated as a dividend under Section 78 of the Internal Revenue Code.
The reference in subdivision (1) to amounts required to be included in adjusted gross income under this article after application of IC 6-3-1-3.5(b)(13), IC 6-3-1-3.5(d)(12), and IC 6-3-1-3.5(e)(12) applies in the same taxable year that the taxpayer takes into account the increase in Subpart F income as a result of Section 965(a) of the Internal Revenue Code and uses the deduction for deferred foreign income under Section 965(c) of the Internal Revenue Code.
(b) A corporation that includes any foreign source dividend in its adjusted gross income for a taxable year is entitled to a deduction from that adjusted gross income. The amount of the deduction equals the product of:
(1) the amount of the foreign source dividend included in the corporation's adjusted gross income for the taxable year; multiplied by
(2) the percentage prescribed in subsection (c), (d), or (e), as the case may be.
(c) The percentage referred to in subsection (b)(2) is one hundred percent (100%) if the corporation that includes the foreign source dividend in its adjusted gross income owns stock possessing at least eighty percent (80%) of the total combined voting power of all classes of stock of the foreign corporation from which the dividend is derived.
(d) The percentage referred to in subsection (b)(2) is eighty-five percent (85%) if the corporation that includes the foreign source dividend in its adjusted gross income owns stock possessing at least fifty percent (50%) but less than eighty percent (80%) of the total combined voting power of all classes of stock of the foreign corporation from which the dividend is derived.
(e) The percentage referred to in subsection (b)(2) is fifty percent (50%) if the corporation that includes the foreign source dividend in its adjusted gross income owns stock possessing less than fifty percent (50%) of the total combined voting power of all classes of stock of the foreign corporation from which the dividend is derived.
As added by P.L.383-1987(ss), SEC.4. Amended by P.L.214-2018(ss), SEC.8.
Structure Indiana Code
Chapter 2. Imposition of Tax and Deductions
6-3-2-0.3. Intent of General Assembly Adding Section 2.3 of This Chapter
6-3-2-1. Tax Rate; Calculations Required for Purposes of Determining Tax Rate
6-3-2-2.2. Interest Income, Discounts, and Receipts Attributable to State
6-3-2-2.3. In-State Commercial Printing for Out-of-State Customer
6-3-2-2.5. Resident Persons; Net Operating Loss; Adjusted Gross Income
6-3-2-2.5-b. Resident Persons; Net Operating Loss; Adjusted Gross Income
6-3-2-2.6. Corporations and Nonresident Persons; Net Operating Losses
6-3-2-2.6-b. Corporations and Nonresident Persons; Net Operating Losses
6-3-2-2.7. Team Members; Indiana Income; Rules
6-3-2-3.1. Taxation; Nonprofit Entities; Unrelated Business Income
6-3-2-3.2. Indiana Income of Race Team Members
6-3-2-3.5. Exemption; Fares for Public Transportation Services
6-3-2-3.7. Remainder of Federal Civil Service Annuity Minus Certain Retirement Benefits; Deduction
6-3-2-4. Military Service Deduction; Retirement Income or Survivor's Benefits Deduction
6-3-2-6. Deduction; Rent Payments
6-3-2-8. Enterprise Zone Employers; Exemption From Deduction
6-3-2-9. Disability Retirement; Deduction; Amount
6-3-2-10. Unemployment Compensation; Deduction
6-3-2-11. Deductions From Adjusted Gross Income; Federal Employee Paid Leave
6-3-2-12. Foreign Source Dividends; Deduction; Computation
6-3-2-14.1. Prize Money Accruing Before July 1, 2002; Exemption
6-3-2-16. Transactions Between Taxable Entity and Unitary Taxpayer Subject to Ic 6-5.5
6-3-2-19. Distributions for Higher Education; Exemptions
6-3-2-20. Corporations; Intangible Expenses; Directly Related Interest Expenses; Exceptions
6-3-2-21.7. Exemption for Certain Income Derived From Patents
6-3-2-22. Deduction; Unreimbursed Education Expenditures
6-3-2-24. Income Tax Exemption; Olympic Medalist
6-3-2-26. Deduction for Contributions to a Regional Development Authority Infrastructure Fund