Form 1120-F (Sch H) 1120-F (Sch H) Deductions Allocated To Effectively Connected Income Und

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I.R.S. SPECIFICATIONS

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INSTRUCTIONS TO PRINTERS
SCHEDULE H (FORM 1120-F), PAGE 1 of 2
MARGINS: TOP 13mm (1⁄ 2 ") CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
FLAT SIZE: 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: (NONE)

PRINTS: HEAD TO HEAD
INK: BLACK

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SCHEDULE H
(Form 1120-F)
Department of the Treasury
Internal Revenue Service

Name of corporation

Part I

Action

Date

Signature

O.K. to print
Revised proofs
requested

Deductions Allocated To Effectively Connected
Income Under Regulations Section 1.861-8

OMB No. 1545-0126

2008

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©

©

Attach to Form 1120-F.
See separate instructions.

Employer identification number

Home Office Deductible Expenses Definitely Related Solely to ECI or Non-ECI

Note. Enter all amounts on lines 1 through 13 in only U.S. dollars or in only functional currency. If U.S. dollars, check box
Otherwise, specify currency ©

1
2
3
4
5
6
7
8
9
10
11
12

1
Total expenses on the books of the home office
2
Adjustments for U.S. tax principles (attach schedule - see instructions)
Total deductible expenses on the books of the home office. Combine lines 1 and 2
4
Interest expense included in line 3
5
Bad debt expense included in line 3
Total of interest expense and bad debt expense. Add lines 4 and 5
Remaining deductible expenses to be allocated and apportioned between ECI and non-ECI.
Subtract line 6 from line 3
8
Deductible expenses definitely related solely to non-ECI from subsidiaries
Deductible expenses definitely related solely to other non-ECI booked in the
9
home country
Deductible expenses definitely related solely to other non-ECI booked in
10
other countries (including the United States)
11
Deductible expenses definitely related solely to ECI
Total deductible expenses definitely related solely to ECI or non-ECI. Add lines 8 through 11

Part II

.

3

6
7

12

Home Office Deductible Expenses Allocated and Apportioned to ECI
Note. Enter the amounts on lines 15 through 20 in U.S. dollars.

13
14
15
16
17
18
19
20

Remaining deductible expenses on the books of the home office not definitely related solely to ECI
or non-ECI. Subtract line 12 from line 7
Average exchange rate used to convert amounts to U.S. dollars (see instructions)
Enter the amount from line 13. If line 13 is stated in functional currency, divide line 13 by line 14
Remaining home office deductible expenses on line 15 allocated and apportioned under Regulations
section 1.861-8 to ECI (attach computation)
Enter the amount from line 11. If line 11 is stated in functional currency, divide line 11 by line 14
Total home office deductible expenses allocated and apportioned to ECI. Add lines 16 and 17
Total deductible expenses from other non-U.S. locations allocated and apportioned to ECI
Total deductible expenses allocated and apportioned to ECI. Add lines 18 and 19 and enter the
amount here and on Form 1120-F, Section II, line 26

Part III

13
14
15
16
17
18
19
20

Allocation and Apportionment Methods and Financial Records Used to Complete Parts I and II
Note. Enter the amounts in Part III, lines 21a, 21b, 22a, and 22b in U.S. dollars.

● If one or more methods used are different than in prior year, check box
● If any amount on line 20 is recorded as an interbranch amount on books and records used to prepare Form 1120-F, Schedule
L, include the amount on Part IV, line 35 and check this box
21
a
b
c
22
a
b
c
23
a
b
c
24
25

Gross income ratio:
Gross ECI
Worldwide gross income
Divide line 21a by line 21b
Gross asset ratio:
Average U.S. assets from Schedule I, line 5, column (d)
Worldwide assets (if applicable, from Schedule I, line 6b)
Divide line 22a by line 22b
Number of personnel ratio:
Personnel of U.S. trade or business
Worldwide personnel
Divide line 23a by line 23b
Did the corporation use any ratio-based methods (other than those indicated
in Parts I and II? If “Yes,” attach schedule (see instructions)
Did the corporation use any other methods (e.g., time-spent analysis or
If “Yes,” attach schedule (see instructions)

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 1120-F.

21a
21b
21c

%

22c

%

22a
22b

23a
23b
23c
on lines 21 through 23 above)

Yes

%
No

estimates) in Parts I and II?

Cat. No. 49679V

Schedule H (Form 1120-F) 2008

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I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
SCHEDULE H (FORM 1120), PAGE 2 of 2
MARGINS: TOP 13mm (1⁄ 2 ") CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
FLAT SIZE: 216mm (81⁄ 2 ") 3 279mm (11")
PERFORATE: (NONE)

PRINTS: HEAD TO HEAD
INK: BLACK

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Page

Schedule H (Form 1120-F) 2008

Part III

26a
b
27
28

2

Allocation and Apportionment Methods and Financial Records Used to Complete
Parts I and II (continued)
Note: Indicate whether the corporation used any of the following financial and other records in Parts I
and II to identify deductible expenses allocated and apportioned to ECI.

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Yes No

Published or other non-public audited financial statements
Non-audited financial statements
Home office management or other departmental cost accounting reports
Other (e.g., home country regulatory reports) (attach schedule)

Part IV

Allocation and Apportionment of Expenses on Books and Records Used to Prepare Form 1120-F, Schedule L
Note. Enter all amounts in Part IV in U.S. dollars.

29

Total expenses per books and records used to prepare Form 1120-F,
Schedule L

29

30

Adjustments for U.S. tax principles (attach schedule – see instructions)

30

31

Total deductible expenses. Combine lines 29 and 30

31

32a

32a Third-party interest expense included in line 31

32b

b Interbranch interest expense included in line 31
33

Bad debt expense included in line 31

33

34

Other third-party deductible expenses not allocated or apportioned to ECI
and non-ECI under Regulations section 1.861-8 included in line 31 (attach
schedule)

34

35

Interbranch expenses per books and records included in line 31 and not
35
included on line 32b (attach schedule)

36

Add lines 32a through 35

36

37

Deductible expenses on books and records allocated and apportioned to ECI or non-ECI under
Regulations section 1.861-8. Subtract line 36 from line 31

37

Reconciliation of allocation and apportionment of deductible
expenses to ECI and non-ECI on books and records under
Regulations section 1.861-8 (from line 37)

(a)
ECI Amounts

(b)
Non-ECI Amounts

(c)
Total: Add columns
(a) and (b)

38a Derivative transaction deductible expenses definitely related to ECI
38a
or non-ECI under Regulations section 1.861-8 (from line 37)
b Other deductible expenses definitely related to ECI or non-ECI
38b
(from line 37)
39

40

41

Total deductible expenses definitely related to ECI or non-ECI.
Add lines 38a and 38b

39

Other deductible expenses on books and records not definitely
related to ECI or non-ECI allocated and apportioned to ECI and
non-ECI (from line 37)

40

Total deductible expenses on books and records allocated and
apportioned to ECI and non-ECI. Add lines 39 and 40. Column
41
(c) must equal line 37
Note. Line 41, column (a) is the total of the deductions reported on Form 1120-F, Section II, lines 12, 13, 14, 16, 17, 19, 20,
21, 22, 23, 24, 25, and 27.
Schedule H (Form 1120-F) 2008
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