U.S. Individual Income Tax Return Forms

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Instructions for Form 8858

Department of the Treasury
Internal Revenue Service

(Rev. December 2024)

(Use with the December 2024 revision of Form 8858 and the September 2021
revision of separate Schedule M)

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Information Return of U.S. Persons With Respect to Foreign Disregarded Entities
(FDEs) and Foreign Branches (FBs)
Section references are to the Internal Revenue Code unless
otherwise noted.

Future Developments

For the latest information about developments related to
Form 8858, Schedule M (Form 8858), and their instructions,
such as legislation enacted after they were published, go to
IRS.gov/Form8858.

What's New

Who must file, category 1 filer. The scope of filers was
clarified to only apply to a direct owner of an FDE and
operator of an FB.

Who must file, category 2 filer. The scope of filers was
clarified to only apply to a tax owner of an FDE and operator
of an FB that is owned through one or more tiers of FDEs.

Who must file, category 6 filer. The scope of filers was
revised to apply to a U.S. corporation (other than a regulated
investment company (RIC), a real estate investment trust
(REIT), or an S corporation) that is a partner in a partnership,
which checked box 11 (Dual Consolidated Loss) on
Schedules K-2 and K-3 (Form 1065), regardless of whether
the partnership is a U.S. or foreign partnership.

Line 1h, Principal business activity code number. The
entry for the 6-digit principal business activity code number
was separated from Line 1i, Principal business activity, where
the description of the FDE's or FB's principal business
activity is entered.
Schedule G, line 14. Certain jurisdictions have enacted
legislation to implement the GloBE Model Rules for the
Qualified Domestic Minimum Top-up Tax (QDMTT), Income
Inclusion Rule (IIR), and UTPR. Under these rules, if the
Effective Tax Rate (ETR) for a jurisdiction is below the 15%
Minimum Rate, Top-up Tax may be imposed and collected
under the QDMTT, IIR, and/or UTPR.

Reminders
Who must file, category 5 filer, and Schedule G, lines 10
through 13. The persons previously described in category 5
are no longer required to file, and a U.S. partnership is no
longer required to answer questions on lines 10 and 11 of
Schedule G as if it were a U.S. corporation. For a
partnership's reporting obligations concerning dual
consolidated losses, see Partnership Instructions for
Schedules K-2 and K-3 (Form 1065). The description in
category 5 has been modified for a new group of filers.
Initial or final checkboxes. Additional clarification has
been provided for when to check these boxes. See Initial
Form or Final Form 8858 under Specific Instructions, later.

Aug 29, 2024

Functional currency. Filers of Form 8858 are required to
enter a three-letter ISO 4217 “Alphabet Code” on lines 1j, 3e,
and 4d. For more information, see the instructions for line 1j,
later.

General Instructions
Purpose of Form

Form 8858 is used by certain U.S. persons that operate an
FB or own an FDE directly or, in certain circumstances,
indirectly or constructively. See U.S. Person Filing Form
8858, later. The form and schedules are used to satisfy the
reporting requirements of sections 6011, 6012, 6031, and
6038, and related regulations.

If the tax owner of the FDE or FB is a controlled foreign
corporation (CFC) or controlled foreign partnership (CFP),
the amounts reported on Form 8858 Schedules C, F, H, J,
and M must be included in determining the amounts reported
on the equivalent schedules, if applicable, of Form 5471 or
Form 8865 of the tax owner. If there are tiers of FDEs or FBs
(for example, one FDE owns one or more FDEs or FBs), then
complete separate Forms 8858 for each FDE or FB. Do not
include amounts reported on a Form 8858 for a lower tier
FDE or FB onto the Form 8858 for the upper tier FDE.
However, the amounts for all the FDEs and FBs must be
included in determining the amounts reported on the form for
the tax owner.

Who Must File

The following U.S. persons that are tax owners of FDEs,
operate an FB, or that own certain interests in tax owners of
FDEs or FBs must file Form 8858, and Schedule M (Form
8858).
Category 1 filer. A U.S. person that is directly a tax owner of
an FDE or operates an FB at any time during the U.S.
person's tax year or annual accounting period. Complete the
entire Form 8858, including the separate Schedule M (Form
8858), Transactions Between Foreign Disregarded Entity
(FDE) or Foreign Branch (FB) and the Filer or Other Related
Entities.
Category 2 filer. A U.S. person that indirectly through one
or more tiers of FDEs is either a tax owner of an FDE or
operates an FB at any time during the U.S. person’s tax year
or annual accounting period. Complete the entire Form 8858,
including the separate Schedule M (Form 8858).
Category 3 filer. Certain U.S. persons that are required to
file Form 5471 with respect to a CFC that is a tax owner of an
FDE or operates an FB at any time during the CFC's annual
accounting period.
Category 4 filers of Form 5471. Complete the entire
Form 8858 and the separate Schedule M (Form 8858).

Cat. No. 38123Q

Category 5 filers of Form 5471. Complete only the
identifying information on page 1 of Form 8858 (for example,
everything before Schedule C) and Schedules G, H, and J.
Do not complete the separate Schedule M (Form 8858).
Category 4 filer. Certain U.S. persons that are required to
file Form 8865 with respect to a CFP that is a tax owner of an
FDE or operates an FB at any time during the CFP's annual
accounting period. If the U.S. person required to file by
operation of this rule is a U.S. individual, the U.S. person is
not required to complete lines 10 through 13 of Schedule G.
If the U.S. person is not an individual, the U.S. person is
required to report its distributive share of the items on lines
10 through 13 of Schedule G.
Category 1 filers of Form 8865. Complete the entire
Form 8858 and the separate Schedule M (Form 8858).
Category 2 filers of Form 8865. Complete only the
identifying information on page 1 of Form 8858 (for example,
everything above Schedule C) and Schedules G, H, J, and
the separate Schedule M (Form 8858). You are not required
to complete Form 8858 if there is a category 1 filer of Form
8865 that completes the entire Form 8858 and separate
Schedule M (Form 8858) with respect to the FDE or FB.

or attached to, and filed in the same manner as, the multiple
filer information provided with respect to the CFC or the CFP.
See Multiple filers of same information in the Instructions for
Form 5471 or Multiple Category 1 filers in the Instructions for
Form 8865.

When and Where To File

Form 8858 is due when your income tax return or information
return is due, including extensions. If you are the tax owner of
the FDE or operate an FB, attach Form 8858 and the
separate Schedule M (Form 8858), if required, to your
income tax return or information return. If you are not the tax
owner of the FDE or indirect FB, attach Form 8858 to any
Form 5471 or Form 8865 you are filing with respect to the
CFC or the CFP that is the tax owner of the FDE or operates
the FB.

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Category 5 filer. A U.S. person that is a partner in a
partnership that owns an FDE or operates an FB and applies
section 987 to the activities of the FDE or FB using a method
that requires the partner, rather than the partnership, to
recognize section 987 gain or loss with respect to the FDE or
FB. The U.S. person must complete the first page of the Form
8858 and Schedule C-1 for each FDE and FB of the
partnership. As stipulated in the Partnership Instructions for
Schedules K-2 and K-3 (Form 1065), the partnership must
furnish to the U.S. person all the information necessary for
them to complete the above-described portions of Form
8858. A category 5 filer should check the box for “FDE of a
U.S. person” (in the case of an FDE owned by a partnership)
or “FB of a U.S. person” (in the case of an FB owned by a
partnership).

Category 6 filer. A U.S. corporation (other than a RIC, a
REIT, or an S corporation) that is a partner in a partnership,
which checked box 11 (Dual Consolidated Loss) on
Schedules K-2 and K-3 (Form 1065). Even though the U.S.
corporation is not the tax owner of the FDE and/or the FB, the
U.S. corporation must complete lines 1 through 5 of the Form
8858, line 3 of Schedule G, and report its distributive share of
the items on lines 10 through 13 of Schedule G for each FDE
and FB of the partnership. As stipulated in the Partnership
Instructions for Schedules K-2 and K-3 (Form 1065), the
partnership must furnish to the U.S. corporate partner the
information necessary for the partner to complete the
above-described portions of Form 8858.
Note. Complete a separate Form 8858 and all applicable
schedules for each FDE or FB.

Exceptions To Filing Form 8858
Multiple filers of the same information. In the case of
category 4 or 5 filers of Form 5471 or category 1 filers of
Form 8865 who are also required to file Form 8858, one
person may file Form 8858 and Schedule M (Form 8858), if
applicable, for other persons who have the same filing
requirements with respect to both Form 8858 and Form 5471
or Form 8865. If you and one or more other persons are
required to furnish information for the same FDE or indirect
FB for the same period, this information may be included with
2

Definitions

U.S. Person

A U.S. person is:
• A citizen or resident alien of the United States (see Pub.
519 for guidance on determining resident alien status);
• A domestic partnership;
• A domestic corporation;
• Any estate (other than a foreign estate, within the meaning
of section 7701(a)(31)(A)); and
• Any domestic trust.
A domestic trust is any trust if:
1. A court within the United States is able to exercise
primary supervision over the administration of the trust, and
2. One or more U.S. persons have the authority to control
all substantial decisions of the trust.

U.S. Person Filing Form 8858
The U.S. person filing Form 8858 is any U.S. person that:
• Is the tax owner of an FDE;
• Owns a specified interest in an FDE indirectly or
constructively through a CFC or a CFP (see items 2 and 3
under Who Must File, earlier, for more detailed information);
or
• Operates (directly or indirectly through a tier of FDEs) an
FB.
Throughout these instructions, when the pronouns “you”
and “your” are used, they are used in reference to the U.S.
person filing Form 8858.

Foreign Disregarded Entity (FDE)

An FDE is an entity that is not created or organized in the
United States and that is disregarded as an entity separate
from its owner for U.S. income tax purposes under
Regulations sections 301.7701-2 and 301.7701-3. See the
instructions for Form 8832 for more information.
An eligible entity uses Form 8832 to elect how it will be
classified for federal tax purposes. A copy of Form 8832 is
attached to the entity's federal tax return for the tax year of
the election; however, special rules apply if the entity is not
required to file a tax return. For more information, see Where
To File in the instructions for Form 8832.
Note. Rules, effective September 28, 2009, allow an eligible
entity to request a late entity classification election. See Rev.
Instructions for Form 8858 (Rev. 12-2024)

Proc. 2009-41, available at IRS.gov/irb/
2009-39_IRB#RP-2009-41, for more information.

Tax Owner of FDE

The tax owner of the FDE is the person that is treated as
owning the assets and liabilities of the FDE for purposes of
U.S. income tax law.

Direct Owner of FDE

information within the time prescribed. If the information is not
filed within 90 days after the IRS has mailed a notice of the
failure to the U.S. person, an additional $10,000 penalty (per
CFC or CFP) is charged for each 30-day period, or fraction
thereof, during which the failure continues after the 90-day
period has expired. The additional penalty is limited to a
maximum of $50,000 for each failure.
• Any person who fails to file or report all of the information
required within the time prescribed will be subject to a
reduction of 10% of the foreign taxes available for credit
under sections 901 and 960. If the failure continues 90 days
or more after the date the IRS mails notice of the failure to the
U.S. person, an additional 5% reduction is made for each
3-month period, or fraction thereof, during which the failure
continues after the 90-day period has expired. See section
6038(c)(2) for limits on the amount of this penalty.

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The direct owner of an FDE is the legal owner of the
disregarded entity.

Example. Assume Avery, a U.S. individual, is a 60%
partner of CFP 1, a controlled foreign partnership. FDE 1 is a
foreign disregarded entity owned by CFP 1, and FDE 2 is a
foreign disregarded entity owned by FDE 1. In this example,
FDE 1 is the direct owner of FDE 2, and CFP 1 is the direct
owner of FDE 1. CFP 1 is the tax owner with respect to both
FDE 1 and FDE 2. Avery would be required to file the Forms
8858 relating to FDE 1 and FDE 2 with the Form 8865 it files
with respect to CFP 1.

Foreign Branch (FB)

An FB is defined in Regulations section 1.367(a)-6T(g). For
purposes of filing a Form 8858, an FB also includes a
qualified business unit (QBU) (as defined in Regulations
section 1.989(a)-1(b)(2)(ii)) that is foreign.
Example. Assume A, a domestic corporation, operates a
foreign branch, FB1, in country X and is the tax owner of a
foreign disregarded entity, FDE1, in country Y that also
operates a foreign branch, FB2, in country Z. In addition, A is
the sole owner of CFC1, a controlled foreign corporation, that
operates a foreign branch, FB3, in country Z. FB1, FB2, and
FB3 qualify as foreign branches under Regulations section
1.367(a)-6T(g).
A is the direct owner of the activities of FB1 and FDE1,
and an indirect owner of the activities of FB2, through its
ownership of FDE1.
A would be required to file separate Forms 8858 relating to
FB1, FDE1, and FB2, its indirect foreign branch through its
ownership of FDE1. Unless indicated otherwise on the Form
8858 or in the instructions, the Form 8858 filed relating to
FDE1 would include only items attributable to FDE1 and
therefore would not include any items attributable to FB2.
Similarly, unless indicated otherwise, the Form 8858 filed for
FB2 would include only items attributable to FB2 and not to
FDE1.
CFC1 is the direct owner of the activities of FB3. Also,
CFC1 is the tax owner with respect to the foreign branch
activities of FB3. A would be required to file the Form 8858
relating to FB3 with the Form 5471 it files with respect to
CFC1. The Form 5471 for CFC1 would include any income or
loss incurred by FB3.
Accounting books and records. The existence of a
separate set of books and records, or lack thereof, may affect
the determination of whether a trade or business activity
qualifies as an FB that is required to file Form 8858. For more
information, see Regulations sections 1.989(a)-1(d) and
1.367(a)-6T(g)(1).

Penalties
Failure to file information required by section 6038(a)
(Form 8858 and Schedule M (Form 8858)).
• A $10,000 penalty is imposed for each annual accounting
period of each CFC or CFP for failure to furnish the required
Instructions for Form 8858 (Rev. 12-2024)

Criminal penalties. Criminal penalties under sections 7203,
7206, and 7207 may apply for failure to file the information
required by section 6038.
Note. Any person required to file Form 8858 and
Schedule M (Form 8858) who agrees to have another person
file the form and schedules for them may be subject to the
above penalties if the other person does not file a correct and
proper form and schedule.

Other Reporting Requirements

Reporting Exchange Rates on Form 8858

When translating amounts from functional currency to U.S.
dollars, you must use the method specified in these
instructions. But, regardless of the specific method required,
all exchange rates must be reported using a “divide-by
convention” rounded to at least four places. That is, the
exchange rate must be reported in terms of the amount by
which the functional currency amount must be divided in
order to reflect an equivalent amount of U.S. dollars. As such,
the exchange rate must be reported as the units of foreign
currency that equal 1 U.S. dollar, rounded to at least four
places. Do not report the exchange rate as the number of
U.S. dollars that equal 1 unit of foreign currency.
Note. You must round the result to more than four places;
failure to do so would materially distort the exchange rate or
the equivalent amount of U.S. dollars.
Example. During its annual accounting period, an FDE
owned by a U.S. person had current income of 30,255,400
Japanese Yen on Schedule H, line 6. The Schedule H, line 7,
instructions specify that the filer must translate these
amounts into U.S. dollars at the average exchange rate for
the tax year in accordance with the rules of section 989(b).
The average exchange rate is 105.7846 Japanese Yen to
1 U.S. dollar (0.00945317 U.S. dollars to 1 Japanese Yen).
Divide 30,255,400 Japanese Yen by 105.7846 to determine
the U.S. dollar amount to enter on Schedule H, line 7. Enter
105.7846 on Schedule H, line 8.

Electronic Filing of Form 8858

If you file your income tax return electronically, see the
instructions for your income tax return for general information
about electronic filing.
Note. If you are filing Form 1120 or 1065 electronically, you
must attach Form 8858 electronically (as an attachment to
your electronically filed Form 1120, Form 1065, Form 5471,
3

or Form 8865). If you are filing Form 1040, Form 1040-SR, or
Form 1041 electronically (with or without a Form 5471 or
Form 8865), attach Form 8858 to the applicable Form 8453.

Computer-Generated Form 8858 and Schedules

A computer-generated Form 8858 and its schedules may be
filed if they conform to and do not deviate from the official
form and schedules. Generally, all computer-generated forms
must receive prior approval from the IRS and are subject to
an annual review.

tax owner. Therefore, in the case of a U.S. tax owner, the
annual accounting period of the FDE or FB is the tax year of
the U.S. tax owner; and in the case of a CFC or CFP that is a
tax owner, the annual accounting period of the FDE or FB is
the annual accounting period of the CFC or CFP.

Person Filing This Return

In the spaces provided at the top of page 1 of Form 8858,
provide the identifying information for the U.S. person filing
Form 8858 (see U.S. Person, earlier).

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Submit all requests for approval to the Substitute Forms
Program. Use the address in the current Pub. 1167, General
Rules and Specifications for Substitute Forms and Schedules
at IRS.gov/Pub1167.
Important: Be sure to attach the approval letter to Form
8858.

Every year, the IRS issues a revenue procedure to provide
guidance for filers of computer-generated forms. In addition,
every year, the IRS issues Pub. 1167, which reprints the most
recent applicable revenue procedure. Pub. 1167 is available
at IRS.gov/Pub1167, or can be ordered by calling
800-TAX-FORM (800-829-3676).

Dormant FDEs

Announcement 2004-4, 2004-4 I.R.B. 357, available at
IRS.gov/irb/2004-04_IRB#2004-4, provides for a summary
filing procedure for filing Form 8858 for a dormant FDE. A
dormant FDE would be a dormant controlled foreign
corporation if it were treated as a foreign corporation for U.S.
tax purposes.

If you elect the summary procedure, complete only the
identifying information before Schedule C on page 1 of Form
8858 for each dormant FDE as follows.
• The top margin of the summary return must be labeled
“Filed Pursuant to Announcement 2004-4 for Dormant FDE.”
• Include the name, address, identifying number, and tax
year of the U.S. person filing Form 8858 (see U.S. Person,
earlier).
• Include the annual accounting period of the dormant FDE
(below the title of the form) and complete lines 1a through 1e,
and 1g.
• Complete lines 3a through 3d, if applicable.
• Complete lines 4a through 4c, if applicable.

File this summary return in the manner described in When
and Where To File, earlier.

Specific Instructions
Important: If the information required in a given section
exceeds the space provided within that section, do not write
“see attached” in the section and then attach all of the
information on additional sheets. Instead, complete all entry
spaces in the section and attach the remaining information
on additional sheets. The additional sheets must conform
with the IRS version of that section.

Identifying Information
Annual Accounting Period

Enter, in the space provided below the title of Form 8858, the
annual accounting period of the FDE or FB for which you are
furnishing information. The annual accounting period of an
FDE or FB is the annual accounting period or tax year of the

4

If a U.S. corporation is the U.S. person filing Form 8858
and is a member of a consolidated group, list the common
parent as the person filing the return and enter its identifying
information in the spaces provided at the top of page 1 of the
form.

Name Change

If the name of the person filing the return, the tax owner, the
direct owner, the FB, or the FDE whose activities are being
reported changed within the past 3 years, show the prior
name(s) in parentheses after the current name.

Addresses

Use the following instructions to complete lines 1a, 2a, 2b,
3a, and 4a, and the entry spaces at the top of page 1 of the
form for the filer's address.

U.S. addresses. 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 U.S. person has a
P.O. box, show the box number instead.

Foreign addresses. 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. However, if you are filing Form
8858 electronically, enter a valid country code (from the list at
IRS.gov/CountryCodes) instead of the country name.

Initial Form or Final Form 8858

Check the Initial Form 8858 box in the year the tax owner
formed or aquired the FDE or FB, and check the Final Form
8858 box in the year the tax owner terminated or disposed of
the FDE or FB. Only one of these boxes can be checked on
each Form 8858 filed. For example, if an FDE is formed or
aquired, and terminated or disposed of, within the same tax
year (even if it was on the same day), you are required to file
a separate Form 8858 for each event.
On one Form 8858, you would check the Initial 8858
checkbox to reflect the formation or acquisition of the FDE,
and complete the rest of the form reporting information for the
period that the tax owner owns the FDE. On the other Form
8858, you would check the Final 8858 checkbox to reflect the
termination or disposition of the FDE, and complete the rest
of the form reporting information for the period that the tax
owner owns the FDE.

Identifying Numbers

Use the following instructions to complete lines 1b(1), 3c(1),
and 4c, and the entry space at the top of page 1 of the form
for the filer's identifying number. The identifying number of an
individual is their social security number (SSN). The
identifying number of all others is their employer identification
number (EIN).

Instructions for Form 8858 (Rev. 12-2024)

If a U.S. corporation is the U.S. person filing Form 8858
and is a member of a consolidated group, see Person Filing
This Return, earlier.
Line 1b(1)—U.S. identifying number. Generally, you must
enter an EIN on line 1b(1). If you don’t have an EIN when you
file Form 8858, you must enter a reference ID number on
line 1b(2).
Foreign disregarded entity (FDE). An EIN is required for
an FDE to file Form 8832 to elect to be treated as an FDE.
The new EIN must be included on the Form 8858 filed by the
FDE for the first year in which it elects to be treated as an
FDE, and the old reference ID number must be entered on
line 1b(2). In subsequent years, the FDE must enter the EIN
on line 1b(1) of the Form 8858, but entering the old reference
ID number on line 1b(2) is optional.
Foreign branch (FB). An FB does not file Form 8832 and
thus may not be required to have an EIN. In that case, the FB
must enter a reference ID number on line 1b(2).

8832 to become an FDE must have an EIN. For the first year
that Form 8858 is required to be filed after an entity
classification election is made on behalf of the foreign entity
on Form 8832, the new EIN must be entered on line 1b(1) of
Form 8858 and the old reference ID number must be entered
on line 1b(2) of Form 8858. In subsequent years, a filer may
continue to enter both the EIN on line 1b(1) and the reference
ID number on line 1b(2), but must enter at least the EIN on
line 1b(1).
You must correlate the reference ID numbers as follows:
New reference ID number (space) Old reference ID number.
If there is more than one old reference ID number, you must
enter a space between each such number. As indicated
above, 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.

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Note. Do not enter an SSN on line 1b(1) or 1b(2).

Line 1b(2)—Reference ID number. A reference ID number
(defined below) is required on line 1b(2) only in cases where
no EIN was entered on line 1b(1) for the FDE or FB. However,
filers are permitted to enter both an EIN on line 1b(1) and a
reference ID number on line 1b(2). If applicable, enter the
reference ID number you have assigned to the FDE or FB
identified on line 1a.
A "reference ID number" is a number established by the
U.S. person identified at the top of page 1 of the Form 8858
who is responsible for completing the Form 8858 for the FDE
or FB. The reference ID number must meet the requirements
set forth below.

Note. Because reference ID numbers are established by or
on behalf of the U.S. person filing Form 8858, there is no
need to apply to the IRS to request a reference ID number or
for permission to use these numbers. Reference ID numbers
must be used consistently from year to year to identify a
specific FB or FDE.
Requirements. The reference ID number that is entered
on line 1b(2) must be alphanumeric (defined below) 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.
The same reference ID number must be used consistently
from tax year to tax year with respect to a given FDE, FB, or
tax owner. If for any reason a reference ID number falls out of
use (for example, the FDE, FB, or tax owner no longer exists
due to disposition or liquidation), the reference ID number
used for that FDE, FB, or tax owner cannot be used again for
another FDE, FB, or tax owner for purposes of Form 8858
reporting.
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 an
FDE, FB, or tax owner partnership. For example:
• In the case of a merger or acquisition, a Form 8858 filer
must use a reference ID number that correlates the previous
reference ID number with the new reference ID number
assigned to the FDE, FB, or tax owner; or
• Under Regulations section 301.6109-1(b)(2)(v), a foreign
entity that makes an entity classification election on Form
Instructions for Form 8858 (Rev. 12-2024)

Note. This correlation requirement applies only to the first
year the new reference ID number is used.

Line 1g—Country in Which Principal Business
Activity Is Conducted

Enter the two-letter country code (from the list at IRS.gov/
CountryCodes) of the country in which the principal business
activity of the FDE or FB is conducted.
Enter “US” if the principal business activity of an FDE is
conducted in the United States.

Line 1h—Principal Business Activity Code
Number

Enter the 6-digit principal business activity code number for
the FDE or FB. Principal business activity code numbers can
be found at the end of the Instructions for Form 5471.

Line 1i—Principal Business Activity

Enter a brief description of the FDE’s or FB’s principal
business activity.

Line 1j—Functional Currency

Enter the entity's three-letter functional currency code. This is
an Alphabet Code selected from ISO 4217, available at
ISO.org/iso-4217-currency-codes.html or CURRENCYISO.org/en/home/tables/table-a1.html. See sections 985 and
989, and Regulations sections 1.985-1(a) through (c) and
1.989(a)-1(b) for rules for determining the functional currency
of a QBU and the definition of a QBU.
Hyperinflationary exception. An entity that would
otherwise be required to use a hyperinflationary currency as
its functional currency must use the U.S. dollar as its
functional currency and figure income or loss or earnings and
profits using the U.S. dollar approximate separate
transactions method of accounting (DASTM) under the
special rules of Regulations section 1.985-3. However, if the
hyperinflationary QBU is an FDE or FB of a foreign
corporation with a non-U.S. dollar functional currency that is
not hyperinflationary, the functional currency of the FDE or
FB is the functional currency of the foreign corporation and
such QBU applies Regulations section 1.985-3 by
substituting the functional currency of the foreign corporation
for the U.S. dollar. See Regulations section 1.985-1(b)(2).

5

Line 3

If the tax owner of the FDE or FB is different from the filer,
then provide the information required on lines 3a through 3e
for the tax owner.

Line 3b

If the tax owner is a CFC, enter the annual accounting period
covered by Form 5471 (as described in Regulations section
1.6038-2(e)). If the tax owner is a CFP, enter the annual
accounting period covered by Form 8865 (as described in
Regulations section 1.6038-3(f)).

between the tax owner and the FDE or FB and the chain of
ownership between the FDE or FB and all entities in which
the FDE or FB has a 10%-or-more direct or indirect interest.

• The name and percentage of ownership of all entities in
the chain of ownership, including partnerships and entities
disregarded as separate from their owners.
• The FDE’s or FB’s position in the chain of ownership.
• The tax classification of all entities in the chain of
ownership (see the Form 8832 instructions for tax
classification rules and related definitions).
• The country under whose law each entity is organized.

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Line 3c(1)—U.S. Identifying Number

To complete line 3c(1), see Line 1b(1)—U.S. identifying
number, earlier. If the tax owner does not have an EIN when
Form 8858 is filed, a reference ID number must be entered
on line 3c(2). See the instructions for line 3c(2), later.
Note. If the tax owner is an individual, enter an SSN on
line 3c(1) or line 3c(2).

Line 3c(2)—Reference ID Number

A reference ID number (defined earlier, under the instructions
for line 1b(2)) is required on line 3c(2) only in cases where no
EIN was entered on line 3c(1). However, filers are permitted
to enter both an EIN on line 3c(1) and a reference ID number
on line 3c(2). If this tax owner is a CFC, enter the reference ID
number for the CFC from Form 5471, item 1b(2). If this tax
owner is a CFP, enter the reference ID number for the CFP
from Form 8865, item G2(b). See the instructions for
line 1b(2) for more information about the requirements for the
reference ID number.
Note. If this tax owner is a CFC and Schedule A (Form 8992)
or Schedule B (Form 8992) is required to be filed with respect
to that CFC, the reference ID number entered on line 3c(2)
must be the same as the reference ID number entered on
Form 5471, item 1b(2), and Schedule A (Form 8992), column
(b), or Schedule B (Form 8992), Part I, column (b).

Line 3e

See Line 1j—Functional Currency, earlier.

Line 4

If the direct owner of the FDE or FB is different from the tax
owner, then provide the information required on lines 4a
through 4d for the direct owner. If the FDE has more than one
direct owner, attach a statement to Form 8858 that includes
the information requested on line 4 for each additional direct
owner.

Line 4c—U.S. Identifying Number

To complete line 4c, see Line 1b(1)—U.S. identifying number,
earlier. If the direct owner does not have an EIN when Form
8858 is filed, leave this line blank.
Note. If the direct owner is an individual, enter an SSN on
line 4c.

Line 4d

See Line 1j—Functional Currency, earlier.

Line 5

For these purposes, the rules of section 958(a) (relating to
“direct and indirect ownership”) apply.
Each filer of Form 8858 that is required to file an
organizational chart with respect to more than one FDE
and/or FB may satisfy this requirement by filing a single
organizational chart that includes the required information
with respect to all FDEs and FBs.

Schedule C—Income Statement

Use Schedule C to report a summary income statement for
the FDE or FB figured in the FDE’s or FB’s functional
currency in accordance with U.S. generally accepted
accounting principles (GAAP). Enter in the U.S. dollar column
each line item functional currency amount translated into
dollars using U.S. GAAP translation rules. If the FDE or FB
does not maintain U.S. GAAP income statements in U.S.
dollars, you can use the average exchange rate as
determined under section 989(b). The rate used should be
the rate stated on Schedule H, line 8. If you choose to use the
average exchange rate rather than the U.S. GAAP translation
rules, check the box above line 1 on Schedule C.

Special rules for DASTM. If the FDE or FB uses DASTM,
the functional currency column should reflect local
hyperinflationary currency amounts figured in accordance
with U.S. GAAP. The U.S. dollar column should reflect such
amounts translated into dollars under U.S. GAAP translation
rules. Differences between this U.S. dollar GAAP column and
the U.S. dollar income or loss figured for tax purposes under
Regulations section 1.985-3(c) should be accounted for on
Schedule H. See Special rules for DASTM under
Schedule H, later.

Line 12

Enter the income, war profits, and excess profits tax
deducted in accordance with U.S. GAAP.

Line 13

Include on line 13 adjustments for extraordinary items or prior
period adjustments. The terms “extraordinary items” and
“prior period adjustments” have the same meaning given to
them by U.S. GAAP (see Subtopic 225-20, Income
Statement and Statement No. 16 of the Financial Accounting
Standards Board).

Important: Differences between this functional currency
amount and the amount of taxes that reduce earnings and
profits (E&P) (in the case of an FDE or FB of a CFC) or are
deductible in figuring U.S. taxable income (in the case of an
FDE or FB of a U.S. person or a CFP) should be accounted
for on line 2 or 3 of Schedule H.

You must attach an organizational chart that includes the
following information with respect to the chain of ownership
6

Instructions for Form 8858 (Rev. 12-2024)

Schedule C-1—Section 987 Gain or
Loss Information

The activities of an FDE or FB may give rise to one or more
QBUs. If the QBU has a different functional currency than its
owner, then such owner may be subject to section 987.
If an owner would be treated as owning multiple QBUs,
complete a separate Schedule C-1 with respect to each QBU
of the owner.

Schedule G—Other Information
Line 3

If the tax owner of the FDE is claiming a section 165 loss with
respect to worthless stock or with respect to certain
obligations, see Regulations section 1.6011-4 for information
relating to a disclosure statement that must be attached to
Form 8858 if certain requirements are met.

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If a QBU has multiple owners, complete a separate
Schedule C-1 for each owner.

However, if the U.S. person filing Form 8858 knows that
the owner of a QBU has the same functional currency as a
QBU owned by that person, the U.S. person filing Form 8858
is not required to complete Schedule C-1 with respect to that
owner’s interest in the QBU.
If the U.S. person filing Form 8858 does not know and
does not have reason to know the functional currency of the
owner of a QBU, leave column (b) of lines 1 and 2 blank.

Line 2b

Report on line 2b the amount of section 987 gain or loss
recognized by the recipient owner that results from a
remittance from a QBU or a termination of a QBU.

For amounts reported on line 2b, include a statement with
the following information.
• A description of the methodology used to figure the section
987 gain or loss.
• The amount of section 987 gain or loss included on line 2b
that was previously deferred under Regulations section
1.987-12 and that is being recognized in the current tax year.

Line 3b

Report on line 3b the amount of section 987 gain or loss that
is deferred under Regulations section 1.987-12 either from a
deferral event or an outbound loss event.
If an amount is included on line 3b, include a statement
that provides the following information for each deferral event
or outbound loss event.
• Description of the deferral event or outbound loss event.
• The amount of section 987 gain or loss recognized in the
tax year of the deferral event or outbound loss event, and in
any subsequent tax year, the remaining amount of deferred
section 987 gain or loss.
• For an outbound loss event described in Regulations
section 1.987-12(d)(4), the amount of section 987 loss that is
an adjustment to stock basis and the name of the CFC that
had an adjustment to its basis from the outbound loss event.

Line 5

If the owner changed the method of accounting for its section
987 gain or loss, provide a statement describing the previous
method used, the new method being used, and the rationale
for the change in method of accounting.

Schedule F—Balance Sheet

Use Schedule F to report a summary balance sheet for the
FDE or FB figured and translated into U.S. dollars in
accordance with U.S. GAAP.
Special rule for DASTM. If the FDE or FB uses DASTM,
Schedule F should be prepared and translated into U.S.
dollars according to Regulations section 1.985-3(d), rather
than U.S. GAAP.
Instructions for Form 8858 (Rev. 12-2024)

Line 6

Check “Yes” if the FB or FDE is a QBU as defined in section
989(a). If the QBU is subject to section 987, see
Schedule C-1.

Lines 7 and 8

Note. Do not complete lines 7 and 8 if you are an individual
who owns an FB or FDE directly or through tiers of FBs and
FDEs.
A base erosion payment, in general, means any amount
paid or accrued by an “applicable taxpayer” (as defined by
section 59A(e)) to a foreign person that is a related party of
the taxpayer and with respect to which a deduction is
allowable under chapter 1 of the Code. See section 59A(d).

A base erosion tax benefit, in general, means any
deduction that is allowed under chapter 1 for the tax year with
respect to any base erosion payment. See section 59A(c)(2).
See sections 59A(f) and 59A(g) for the definitions of
“foreign person” and “related party.”

Also, see the Instructions for Form 8991 for the
determination of a base erosion payment and a base erosion
tax benefit.

Line 7a

Check “Yes” if the FB or FDE received (or accrued the receipt
of) any base erosion tax payment, or had a base erosion tax
benefit, from a foreign person that is a related party of the FB
or FDE. Otherwise, check “No.”
If “Yes,” complete lines 7b and 7c, where appropriate.

Line 7b

Enter the total amount of base erosion payments received (or
accrued the receipt of) by the FB or FDE for the tax year.

Line 7c

Enter the total amount of base erosion tax benefit recognized
by the payor relating to base erosion payments reported on
line 7b. Also include on line 7c any base erosion tax benefit
taken into account in the current year from a base erosion
payment in a previous year, for example, depreciation
described in section 59A(c)(2)(A)(ii).

Line 8a

Check “Yes” if the FB or FDE paid (or accrued the payment
of) any base erosion tax payment, or had a base erosion tax
benefit, to a foreign person that is a related party of the FB or
FDE. Otherwise, check “No.”
If “Yes,” complete lines 8b and 8c, where appropriate.

Line 8b

Enter the total amount of base erosion payments paid or
accrued by the FB or FDE for the tax year.
7

Line 8c

Enter the total amount of base erosion tax benefit relating to
base erosion payments reported on line 8b. Also include on
line 8c any base erosion tax benefit taken into account in the
current year from a base erosion payment in a previous year,
for example, depreciation described in section 59A(c)(2)(A)
(ii).

1.1503(d)-6 for exceptions. For example, a domestic use
election made pursuant to Regulations section
1.1503(d)-6(d) is such an exception.
If you check “Yes,” you may need to include a domestic
use election with your U.S. income tax return. If the answer to
line 12b is “Yes,” go to line 12c. If the answer to line 12b is
“No,” skip line 12c and go to line 12d.

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Line 9

Answer line 9 only if the tax owner of the FB or FDE is a CFC.
Otherwise, skip to line 10.

Lines 10 Through 13

Complete lines 10 through 13 only if the tax owner of the FB,
or the tax owner of the interest in the FDE, is a U.S.
corporation (other than a RIC, a REIT, or an S corporation).
Otherwise, continue to Schedule H.
An FB or interest in an FDE of a U.S. corporation may be
treated as a separate unit and subject to dual consolidated
loss (DCL) rules pursuant to Regulations sections
1.1503(d)-1 through 1.1503(d)-8.

Line 10a

Check “Yes” if the FB or FDE is a separate unit under
Regulations section 1.1503(d)-1(b)(4), is not part of a
combined separate unit under Regulations section
1.1503(d)-1(b)(4)(ii), and has a DCL for the tax year. If you
checked “Yes” on line 10a, enter the amount of the DCL on
line 10b.

Line 11a

If the FB or interest in the FDE is treated as a separate unit
under Regulations section 1.1503(d)-1(b)(4), is part of a
combined separate unit, and the combined separate unit has
a DCL for the tax year, check “Yes” and go to lines 11b and
11c. Otherwise, check “No,” then skip lines 11b through 12e
and go to line 13a.

Line 11b

If you checked “Yes” on line 11a, enter the amount of the DCL
for the combined separate unit (as defined in Regulations
section 1.1503(d)-1(b)(4)). See Regulations section
1.1503(d)-5(c)(4)(ii) and complete line 11c.

Line 11c

If you checked “Yes” on line 11a, enter the net income or loss
attributed to the FB or the interest in the FDE. See
Regulations section 1.1503(d)-5(c)(4)(ii)(A).

Line 12a

Subject to certain exceptions, a domestic use of a DCL is not
permitted (“domestic use limitation rule”). A domestic use is
deemed to occur in the year the DCL is included in the
computation of the taxable income of a consolidated group,
unaffiliated dual resident corporation, or unaffiliated domestic
owner, as applicable. See Regulations section 1.1503(d)-2.
Check “Yes” on line 12a if any portion of the DCL on
line 10b or 11b was taken into account in figuring U.S.
taxable income for the year. If “Yes,” go to line 12b. If “No,” go
to line 13a.

Line 12b

A domestic use of a DCL is permitted if an exception to the
domestic use limitation rule applies. See Regulations section

8

Line 12c

If you checked “Yes” on line 12b, the regulations require that
you file documentation for an exception to apply. Check “Yes”
on line 12c if you have attached any of the following
documents to your timely filed return.
• The document(s) required to be filed under an elective
agreement between the United States and a foreign country;
see Regulations section 1.1503(d)-6(b)(1).
• “No Possibility of Foreign Use of Dual Consolidated Loss
Statement”; see Regulations section 1.1503(d)-6(c).
• “Domestic Use Election and Agreement”; see Regulations
section 1.1503(d)-6(d)(1).

Line 12d

If a separate unit, as defined under Regulations section
1.1503(d)-1(b)(4), incurs a DCL after having contributed to
consolidated taxable income of a group in prior years, the
DCL may be used to offset income of domestic affiliates in
the year of the DCL (limited by the amount of the separate
unit’s prior contribution to the cumulative consolidated
taxable income of the group (“cumulative register”)). See
Regulations sections 1.1503(d)-4(c) and 1.1502-21(c).

Check “Yes” on line 12d if the DCL was used to figure
consolidated taxable income. If the DCL amount exceeds the
separate unit’s cumulative register as of the beginning of the
tax year, the amount of DCL claimed is limited to the extent of
the cumulative register and should be reflected on line 10b or
11b, as appropriate. Any excess DCL is treated as a loss
carryover subject to the separate return limitation year (SRLY)
provisions of Regulations section 1.1502-21(c), as modified
by Regulations section 1.1503(d)-4. Do not answer “Yes” to
line 12d if the DCL was used to figure consolidated taxable
income pursuant to one of the exceptions under Regulations
section 1.1503(d)-6. See lines 12b and 12c, earlier. If the
answer to line 12d is “Yes,” go to line 12e.
Check “No” on line 12d if the DCL was not used to figure
consolidated taxable income or the separate unit’s
cumulative register as of the beginning of the tax year is less
than or equal to zero. In such case, the DCL is treated as a
loss carryover subject to the SRLY provisions of Regulations
section 1.1502-21(c), as modified by Regulations section
1.1503(d)-4.

Line 12e

If the answer to line 12d is “Yes,” enter the separate unit’s
contribution to the cumulative consolidated taxable income
as of the beginning of the tax year.

Line 13a

Check “Yes” if a triggering event occurred under Regulations
section 1.1503(d)-6(e) requiring recapture of any DCLs
attributable to the FB or interest in the FDE, individually or as
part of a combined separate unit, in any prior tax years. If
“Yes,” enter the total amount of recapture on line 13b. In
addition, attach a statement to Form 8858 that provides a
detailed description of the triggering event, the regulation
Instructions for Form 8858 (Rev. 12-2024)

citation for the triggering event, and a schedule of the prior
year(s) DCL(s) being recaptured by year.
Check “No” if, with regard to each such prior year DCL,
one of the following is applicable.
• No triggering event occurred in the current tax year.
• A triggering event occurred in the current tax year;
however, a “Rebuttal to Triggering Event” is attached to the
return pursuant to Regulations section 1.1503(d)-6(e)(2).
• A triggering event occurred in the current tax year;
however, the amount of the recapture was reduced to zero
pursuant to Regulations section 1.1503(d)-6(h)(2) and a
“Reduction of Recapture Amount” is attached to the return.

GAAP, enter on line 1 the functional currency GAAP income
or loss from line 14 of Schedule C, rather than starting with
foreign book income, and show GAAP-to-tax adjustments on
lines 2 and 3.
The adjustments may include the following.
Capital gains and losses.
Depreciation, amortization, and depletion.
Investment or incentive allowance.
Charges to statutory reserves.
Inventory adjustments. Inventories must be taken into
account according to the rules of sections 471 (incorporating
the provisions of section 263A) and 472 and the related
regulations.
• Taxes. See the instructions for Schedule C, line 13, earlier.

•
•
•
•
•

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Note. If there is a partial reduction of the recapture amount
pursuant to Regulations section 1.1503(d)-6(h)(2) and a
recapture amount is required to be included in income, check
“Yes,” enter the reduced amount of the DCL recapture
included in income, and attach the “Reduction of Recapture
Amount” to the return.

Line 14a

Certain jurisdictions have enacted legislation to implement
the GloBE Model Rules for the Qualified Domestic Minimum
Top-up Tax (QDMTT), Income Inclusion Rule (IIR), and
UTPR. See OECD (2021), Tax Challenges Arising from the
Digitalisation of the Economy-Global Anti-Base Erosion
Model Rules (Pillar Two) available at DOI.gov/
10.1787/782bac33-en. Under these rules, if the ETR for a
jurisdiction is below 15%, Top-up Tax may be imposed. The
amount of Top-up Tax is determined by multiplying the
Top-up Tax Percentage (the positive excess of 15% over the
ETR in the jurisdiction) by the Excess Profits (the positive
amount of the Net GloBE Income in such jurisdiction that
exceeds a Substance-based Income Exclusion). The Top-up
Tax is collected under the QDMTT, IIR, and/or UTPR.
If the FDE or FB paid or accrued any QDMTT, IIR, and/or
UTPR (or similar tax) during the tax year check "Yes" and
provide the amount of each type of tax on lines 14b(1)
through 14b(3), as applicable.

For more information, see Notice 2023-80, I.R.B. 2023-52
1583 available at IRS.gov/IRB/2023-52_IRB#NOT-2023-80.

Schedule H—Current Earnings and
Profits or Taxable Income

Use Schedule H to report the FDE's current E&P or the FB’s
income (if the tax owner is a CFC) or the FDE’s or FB’s
taxable income (if the tax owner is a U.S. person or a CFP).
Generally, enter the amounts on lines 1 through 6 in
functional currency.
Special rules for DASTM. If the FDE or FB uses DASTM,
enter on line 1 the U.S. dollar GAAP income or loss from
line 14 of Schedule C. Enter on lines 2 and 3 the adjustments
made in figuring current E&P or taxable income for U.S. tax
purposes. Report these amounts in U.S. dollars. Enter on
line 5 the DASTM gain or loss figured under Regulations
section 1.985-3(d).

Lines 2 and 3

Certain adjustments must be made to the FDE’s or FB’s
line 1 net book income or loss to determine its current E&P or
taxable income. The adjustments may include those needed
to conform the foreign book income to U.S. GAAP and to U.S.
tax accounting principles. If the FDE’s or FB’s books are
maintained in functional currency in accordance with U.S.

Instructions for Form 8858 (Rev. 12-2024)

Attach a separate schedule that lists each applicable
adjustment item. For each adjustment item, indicate the
adjustment amount and whether the amount is a net addition
or net subtraction. The separate schedule should also show
two totals, the total net additions amount to be entered on
line 2, and the total net subtractions amount to be entered on
line 3.

Line 5

DASTM gain or loss, reflecting unrealized exchange gain or
loss, should be entered on line 5 only for FDEs or FBs that
use DASTM.

Line 7

Enter on line 7 the functional currency amount translated into
U.S. dollars at the average exchange rate for the FDE’s or
FB’s tax year. See section 989(b). Report the exchange rate
using the “divide-by convention” specified under Reporting
Exchange Rates on Form 8858, earlier. If the FDE or FB uses
DASTM, enter on line 7 the same amount entered on line 6.

Blocked income. The E&P or taxable income of the FDE or
FB, as reflected on Schedule H, must not be reduced by all or
any part of such E&P or taxable income that could not have
been distributed by the FDE or FB due to currency or other
restrictions or limitations imposed under the laws of any
foreign country.

Schedule I—Transferred Loss Amount

Important: Schedule I should be completed if the FB or FDE
is owned:
• Directly by a domestic corporation, or
• Indirectly by a domestic corporation through a tiered
structure of FDEs or FBs.
Schedule I should not be completed if the FB or FDE is
owned by a CFC.

Line 1

Check “Yes” if any assets of an FB (or a branch that is an
FDE) were transferred to a foreign corporation during the tax
year. If “Yes,” continue to line 2; otherwise, check “No” and do
not complete the rest of Schedule I.

Line 2

Check “Yes” if the transferor was a domestic corporation that
transferred substantially all of the assets of an FB (or a
branch that is an FDE) to a specified 10%-owned foreign
corporation. A specified 10%-owned foreign corporation is
defined in section 245A(b)(1) as any foreign corporation with
respect to which any domestic corporation is a U.S.
shareholder with respect to such corporation. If “Yes,”
9

continue to line 3; otherwise, check “No” and do not complete
the rest of Schedule I.

Line 3

Check “Yes” if the transferor was a domestic corporation and
immediately after the transfer the domestic corporation was a
U.S. shareholder (10%-or-more shareholder) with respect to
the transferee foreign corporation. If “Yes,” continue to line 4;
otherwise, check “No” and do not complete the rest of
Schedule I.

case of income taxes paid or accrued by a CFC or CFP, with
or within its annual accounting period. Do not report taxes
that are not creditable, including taxes for which a credit is
disallowed under section 901(j), (k), (l), or (m).
Except as provided below, adjustments to foreign income
taxes paid or accrued in a prior year should not be reflected
on the Form 8858 in the year of adjustment. Instead, they are
reported in the year to which such taxes relate. This may
require an amended return. See section 905(c), as amended
by the TCJA. Adjustments include, for example, additional
payments, refunds, and downward adjustments for accrued
foreign taxes that are not paid within 24 months after the
close of the tax year to which such taxes relate. For more
information, see Regulations section 1.905-3.

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Line 4

Under section 91, the U.S. transferor must include in gross
income an amount equal to the transferred loss amount
(TLA), if any, as defined in section 91(b) upon a transfer of
substantially all of the assets of an FB (including an FB that is
an FDE) to a foreign corporation. The TLA is the sum of
losses incurred by the FDE or FB after 2017, and before the
transfer and with respect to which a deduction was allowed to
the U.S. transferor reduced by the sum of:
1. Any taxable income of such branch for a tax year after
the tax year in which the loss was incurred and through the
close of the tax year of the transfer, and
2. Any amount recognized under section 904(f)(3)
resulting from the transfer.
Also, see section 14102(d)(4) of the Tax Cuts and Jobs Act
(TCJA) for the transition rule of section 91.

The TLA amount may be reduced (but not below zero) by
the amount of gain recognized on account of the transfer,
other than the amounts recognized under section 904(f)(3), if
any. Enter the amount of the TLA included in gross income as
a positive number on line 4.
If the amount is equal to or less than zero, enter zero and
no TLA is required to be recognized by the U.S. transferor on
the transfer under section 91. If the amount is greater than
zero, enter the TLA on line 4 and report this amount as other
income on the applicable Form 1120 (for Form 1120 filers,
page 1, line 10, Other income) and identify the amount as
“Section 91 Transferred Loss Amount.” In addition, attach a
“Schedule I—Transferred Loss Amount Additional
Information” statement to the Form 8858 and provide the
following information.
• A detailed calculation of the transferred loss amount
reflecting amounts of the losses generated by such foreign
branch after 2017 by year, and any income amounts by year
generated after such loss year.
• The amount, if any, recognized under section 904(f)(3) on
account of the transfer.
• A detailed summary of the gain recognized (other than
section 91) by the transferor, including any section 367(a)(1)
gain on the transfer of property.
• A calculation of the net sum of the previously deducted
losses incurred by such foreign branch for tax years prior to
January 1, 2018, that would have been recaptured under
section 367(a)(3)(C), as determined without regards to the
repeal of the section 367(a)(3) active trade or business
exception by section 14102 of the TCJA.

Schedule J—Income Taxes Paid or
Accrued

List income, war profits, and excess profits taxes (“income
taxes”) paid or accrued to the United States and to each
foreign country or U.S. territory for the foreign entity’s foreign
tax year(s) that end with or within its U.S. tax year, or in the

10

Exception. With respect to entities owned directly by a U.S.
person, certain de minimis adjustments may be taken into
account in the year of such adjustment. See Regulations
section 1.905-3(b)(1).
Column (a). Enter the two-letter country code (from the list
at IRS.gov/CountryCodes) of all foreign countries and U.S.
territories within which income is sourced and/or to which
taxes were paid, accrued, or deemed paid.
Column (b). Enter the foreign tax year (YYYY-MM-DD) of
the foreign entity to which the tax relates.

Columns (c) through (e). Report foreign income taxes in
column (c) in the local currency in which the taxes are
payable. Translate these amounts into U.S. dollars (column
(e)) at the average exchange rate for the tax year to which the
tax relates (column (d)) unless one of the exceptions below
applies. See section 986(a).
Exceptions. If one of the following exceptions applies, use
the exchange rate in effect on the date the foreign entity paid
the tax.
1. The tax is paid before the beginning of the year to
which the tax relates.
2. Accrued taxes are not paid before the date 2 years
after the close of the tax year to which such taxes relate.
3. There is an election in effect under section 986(a)(1)
(D) to translate foreign taxes using the exchange rate in effect
on the date of payment.
4. The foreign entity reports on the cash basis. See
section 986(a).
5. The foreign income taxes are denominated in a foreign
currency that is an inflationary currency.
Enter the exchange rate used in column (d). Report the
exchange rate using the “divide-by convention” specified
under Reporting Exchange Rates on Form 8858, earlier.
Enter the translated U.S. dollar amount in column (e).
Columns (f) through (i). Enter the amount by separate
category of income in columns (f) through (i).

Example. Form 8858 is filed for calendar year 2024. A
CFC, which has a calendar year as its annual accounting
period, owns FDEs in countries AA and BB. The FDE in
country AA pays or accrues income tax of 10u = $10 to
country AA with respect to its foreign tax year ending
November 30, 2024. The FDE in country BB pays or accrues
income tax of 20v = $30 to country BB with respect to its
foreign tax year ending March 31, 2024. In addition, in 2024,
the CFC received a refund of 3u or $5 with respect to the
entity it owns in country AA for foreign tax year ending
November 30, 2023, which had an original liability of 21u or
Instructions for Form 8858 (Rev. 12-2024)

$35. All taxes are allocated to the general category. The
following entries should be made on Schedule J of the Form
8858 filed for calendar year 2024.
Line 1
• column (a): Country code AA
• column (b): 2024-11-30
• column (c): 10u
• column (d): 1.0000
• column (e): $10
• column (h): $10
Line 2
• column (a): Country code BB
• column (b): 2024-03-31
• column (c): 20v
• column (d): 0.6666

• column (e): $30
• column (h): $30

See the filled-in example of Schedule J, later.

2023 refund. The refund from tax year 2023 is not
reported on the 2024 Form 8858. The following entries
should be made on Schedule J of the amended Form 8858
filed for the calendar year 2023.
• column (a): Country code AA
• column (b): 2023-11-30
• column (c): 18u
• column (d): 0.6000
• column (e): $30
• column (h): $30

TREASURY/IRS
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Example—Filled-in Schedule J for Calendar Year 2024
Schedule J

Income Taxes Paid or Accrued (see instructions)
Foreign Income Taxes

Foreign Tax Credit Separate Categories

(a)
Country or
territory

(b)
Foreign tax year
(YYYY-MM-DD)

(c)
Foreign currency

(d)
Conversion rate

(e)
U.S. dollar

AA

2024-11-30

10u

1.0000

10

10

BB

2024-03-31

20v

0.6666

30

30

40

40

Totals

For additional instructions on the reporting of foreign taxes
for entities filing a Form 8858 that are owned by a foreign
corporation, see the instructions for Form 5471, Schedule E.

For purposes of column (i), enter foreign income taxes
allocated and apportioned to a separate category of income
not otherwise listed in column (f), (g), or (h). Identify the taxes
with respect to each separate category of income. For
example, if a foreign entity pays taxes to Country A that are
allocated and apportioned to two separate categories of
income, report the taxes allocated and apportioned to the
first separate category on one line and the taxes allocated
and apportioned to the other separate category on another
line. For purposes of determining the applicable categories of
income, see Categories of Income in the Instructions for
Form 1118 or in the Instructions for Form 1116, as applicable.

Schedule M (Form
8858)—Transactions Between Foreign
Disregarded Entity (FDE) or Foreign
Branch (FB) and the Filer or Other
Related Entities
Important: In translating the amounts from functional
currency to U.S. dollars, use the average exchange rate for
the FDE’s or FB’s tax year. See section 989(b). Report the
exchange rate in the entry space provided at the top of
Schedule M (Form 8858) using the “divide-by convention”
specified under Reporting Exchange Rates on Form 8858,
earlier.
A Schedule M (Form 8858) must be filed with each Form
8858 if the FDE or FB entered into any transaction with the
filer of the Form 8858 or other related entities during the
annual accounting period of the FDE or FB.

Instructions for Form 8858 (Rev. 12-2024)

(f)
Foreign branch

(g)
Passive

(h)
General

(i)
Other

Every U.S. person that is required to file Schedule M
(Form 8858) (see Who Must File, earlier) must file the
schedule to report the transactions that occurred during the
FDE’s or FB’s annual accounting period ending with or within
the U.S. person's tax year.
If a U.S. corporation is the U.S. person filing Schedule M
(Form 8858) and is a member of a consolidated group, list
the common parent as the U.S. person filing Schedule M
(Form 8858).

Reference ID number. A reference ID number for the FDE
or FB identified on Schedule M (Form 8858) is required if no
EIN is provided. However, filers are permitted to provide both
an EIN and reference ID number. For more information on the
reference ID number, see Line 1b(2)—Reference ID number,
earlier.
Column headings. There are three sets of column
headings above lines 1 through 21. The first set of column
headings is to be used in cases where the tax owner is a
CFP. The second set of column headings is to be used in
cases where the tax owner is a CFC. The third set of column
headings is to be used in cases where the tax owner is a U.S.
person. If you are completing Schedule M (Form 8858) for an
FDE or FB for which the tax owner is a CFP, check the box for
CFPs and complete lines 1 through 21 using the headings in
columns (a) through (e) of the CFP set of columns. If you are
completing Schedule M (Form 8858) for an FDE or FB for
which the tax owner is a CFC, check the box for CFCs and
complete lines 1 through 21 using the headings in columns
(a) through (f) of the CFC set of columns. If you are
completing Schedule M (Form 8858) for an FDE or FB for
which the tax owner is a U.S. person, check the box for U.S.
Tax Owner and complete lines 1 through 21 using the
headings in columns (a) through (e) of the U.S. Tax Owner
set of columns.
11

Column (e). For CFP- or CFC-owned FDEs or FBs, use
column (e) to report transactions between the FDE or FB and
any U.S. person with a 10%-or-more direct interest in the
CFP or any 10%-or-more U.S. shareholder of any corporation
controlling the CFC. If you are a category 1 filer of Form
8865, or a category 4 filer of Form 5471, do not report
transactions between yourself and the FDE or FB under
column (e). Report the transactions only under column (b).

FB with any foreign corporation (including its FBs or FDEs)
controlling or controlled by the FDE’s or FB’s U.S. tax owner,
if the U.S. tax owner of the FDE or FB is not the U.S. person
filing the return.
Column (e). Use column (e) to report transactions
between the FDE or FB with any foreign (including hybrid)
partnerships (including its FBs or FDEs) controlling or
controlled by the filer. This will include any transactions
between the FDE or FB with any foreign (including hybrid)
partnership (including its FBs or FDEs) controlling or
controlled by the FDE’s or FB’s U.S. tax owner, if the U.S. tax
owner of the FDE or FB is not the U.S. person filing the
return.

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U.S. tax owner. The following instructions for columns (b)
through (e) apply only to an FDE or FB with a U.S. tax owner.
Column (b). Use column (b) to report transactions
between the FDE or FB with the U.S. person filing this return
only if the U.S. person filing this return is other than the tax
owner of the FDE or FB. If the U.S. person filing this return is
the tax owner of the FDE or FB, do not enter any amounts in
column (b).
Column (c). Use column (c) to report transactions
between the FDE or FB with any domestic corporation or
partnership controlled by the filer. Do not include any
transactions between the FDE or FB with its direct U.S. tax
owner that are treated as disregarded for U.S. tax purposes
in column (c).
Column (d). Use column (d) to report transactions
between the FDE or FB with any foreign corporation
(including its FBs or FDEs) controlling or controlled by the
filer. This will include any transactions between the FDE or

Line 6. Report on line 6 dividends received by the FDE that
were not previously taxed under subpart F in the current year
or in any prior year.
Lines 20 and 21. Report on lines 20 and 21 the largest
outstanding balances during the year of gross amounts
borrowed from, and gross amounts loaned to, the related
parties described in columns (b) through (f). Do not enter
aggregate cash flows, year-end loan balances, average
balances, or net balances. Do not include open account
balances resulting from sales and purchases reported under
other items listed on Schedule M (Form 8858) that arise and
are collected in full in the ordinary course of business.

Paperwork Reduction Act Notice. We ask for the information on this form 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.

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.
The time needed to complete and file this form and related schedules will vary depending on individual circumstances. The
estimated burden for individual taxpayers filing this form is approved under OMB control number 1545-1910 and is included in
the estimates shown in the instructions for their individual income tax return. The estimated burden for all other taxpayers who
file this form is shown below.
Learning about the
law or the form

Preparing and sending
the form to the IRS

Form

Recordkeeping

8858

25 hr., 49 min.

4 hr., 46 min.

5 hr., 24 min.

24 hr., 9 min.

6 min.

30 min.

Sch. M (Form 8858)

If you have comments concerning the accuracy of these time estimates or suggestions for making this form and related
schedules simpler, we would be happy to hear from you. See the instructions for the tax return with which this form is filed.

12

Instructions for Form 8858 (Rev. 12-2024)