1120-F (Schedule H Deductions Allocated To Effectively Connected Income Und

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

Part I

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

OMB No. 1545-0126

2009

 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

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.
line 6 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . .

8
9

Deductible expenses definitely related solely to non-ECI from subsidiaries .
Deductible expenses definitely related solely to other non-ECI booked in the
home country . . . . . . . . . . . . . . . . . . . . .
Deductible expenses definitely related solely to other non-ECI booked in other
countries (including the United States) . . . . . . . . . . . . .

10
11
12

13

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3

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Subtract
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7

9

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12

Home Office Deductible Expenses Allocated and Apportioned to ECI

Note. Enter the amounts on lines 15 through 20 in U.S. dollars.
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 . . . . . . . . . . . . . . . . . . . . . .

14
15
16

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) . . . . . . . . . . . . . . . . . . .

17
18
19
20

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
amount here and on Form 1120-F, Section II, line 26 . . . . . . . . . . . . . . .

Part III

6

8

10
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

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

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

Cat. No. 49679V

%

%

Yes

%
No

Schedule H (Form 1120-F) 2009

Page 2

Schedule H (Form 1120-F) 2009

Part III

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.
Yes No

26a
b
27
28

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

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29

30

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

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30

31

Total deductible expenses. Combine lines 29 and 30

32a

Third-party interest expense included in line 31

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b Interbranch interest expense included in line 31

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33
34

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32a

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32b

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31

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36

Add lines 32a through 35

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 . . . . . . . . . . . . . . .

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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)

40

41

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35

36

39

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34

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

38a

b Other deductible expenses definitely related to ECI or non-ECI
(from line 37) . . . . . . . . . . . . . . . . . .

38b

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

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(a)
ECI Amounts

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

38a

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33

Bad debt expense included in line 31
. . . . . . . . . . . . .
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) . . . . . . . . . . . . . . . . . . . . . . .

35

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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.

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

29

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37

(b)
Non-ECI Amounts

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

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 (c)
must equal line 37 . . . . . . . . . . . . . . . .
41
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) 2009