U. S. Business Income Tax Return

Instructions for Form 5472
(Rev. December 2024)

(Use with December 2023 revision of Form 5472)
Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign
Corporation Engaged in a U.S. Trade or Business
Section references are to the Internal Revenue Code
unless otherwise noted.

Future Developments

For the latest information about developments related to
Form 5472 and its instructions, such as legislation
enacted after they were published, go to IRS.gov/
Form5472.

What's New
Definition of foreign person. In the last paragraph of
the definition of foreign person, below, the exception for a
foreign person filing a joint return now refers to specific
Code sections 6013(g) and (h) in accordance with
Regulations section 1.6038A-1(f)(1).

General Instructions
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 reporting corporation with a
foreign or domestic related party.

Definitions
Reporting corporation. A reporting corporation is either:
• A 25% foreign-owned U.S. corporation (including a
foreign-owned U.S. disregarded entity (DE)), or
• A foreign corporation engaged in a trade or business
within the United States.
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.
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:
• The total voting power of all classes of stock entitled to
vote, or
• The total value of all classes of stock of the corporation.
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.
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 reporting corporation by vote or
value.

Feb 11, 2025

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.
Related party. A related party is:
• Any direct or indirect 25% foreign shareholder of the
reporting corporation,
• Any person who is related (within the meaning of
section 267(b) or 707(b)(1)) to the reporting corporation,
• Any person who is related (within the meaning of
section 267(b) or 707(b)(1)) to a 25% foreign shareholder
of the reporting corporation, or
• Any other person who is related to the reporting
corporation within the meaning of section 482 and the
related regulations.
“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.
Reportable transaction. A reportable transaction is:
• 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.
Transactions with a U.S. related party, however, are not
required to be specifically identified in Parts IV, V, and VI.
Foreign person. A foreign person is:
• An individual who is not a citizen or resident of the
United States;
• An individual who is a citizen or resident of a U.S.
possession who is not otherwise a citizen or resident of
the United States;
• Any partnership, association, company, or corporation
that is not created or organized in the United States;
• Any foreign estate or foreign trust described in section
7701(a)(31); or
• Any foreign government (or agency or instrumentality
thereof) to the extent that the foreign government is
engaged in the conduct of a commercial activity, as
defined in section 892.
However, the term “foreign person” does not include
any individual for whom an election under section 6013(g)

Instructions for Form 5472 (Rev. 12-2024) Catalog Number 59641T
Department of the Treasury Internal Revenue Service www.irs.gov

or (h) (relating to an election to file a joint return) is in
effect.
See Regulations section 1.6038A-1(f).
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 Regulations sections
301.7701-2 and 301.7701-3. See the instructions for Form
8832.
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 corporations. See the final
regulations at IRS.gov/irb/2017-03_IRB#TD-9796.

Who Must File

Generally, a reporting corporation must file Form 5472 if it
had a reportable transaction with a foreign or domestic
related party.
Exceptions from filing. A reporting corporation is not
required to file Form 5472 if any of the following apply.
1. It had no reportable 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.
2. A U.S. person that controls the foreign related
corporation files Form 5471, Information Return of U.S.
Persons With Respect To Certain Foreign Corporations,
for the tax year to report 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.
3. The related corporation qualifies as a foreign sales
corporation for the tax year and files Form 1120-FSC, U.S.
Income Tax Return of a Foreign Sales Corporation. This
exception does not apply to foreign-owned U.S. DEs.
4. It is a foreign corporation that does not have a
permanent establishment in the United States under an
applicable income tax treaty and timely files Form 8833,
Treaty-Based Return Position Disclosure Under Section
6114 or 7701(b).
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:

• 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
• Any expense, loss, or other deduction that is allocable
or apportionable to such income.
2

Note. Exception 6 does not apply to foreign-owned U.S.
DEs.
Consolidated returns. If a reporting corporation is a
member of an 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 members of the U.S. affiliated group are
reporting corporations under section 6038A, and which of
those members are joining in the 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 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.

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.

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 section 6038A, it will now be
required to file a pro forma Form 1120, U.S. Corporation
Income Tax Return, 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 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.
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.
Note. “Foreign-owned U.S. DE” should be written across
the top of the Form 1120. File these forms by:
• Fax (300 DPI or higher) to 855-887-7737, or
• Mail to:
Internal Revenue Service
1973 Rulon White Blvd
M/S 6112 Attn: PIN Unit
Ogden, UT 84201
Foreign-owned U.S. DEs are required to use the
special mailing address, as mentioned earlier.
CAUTION These filers do not use the mailing addresses
provided in the Instructions for Form 1120.

!

Extension of time to file. A foreign-owned U.S. DE
required to file Form 5472 can request an extension of
time to file by filing Form 7004, Application for Automatic
Extension of Time To File Certain Business Income Tax,
Information, and Other Returns. 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
Instructions for Form 5472 (Rev. 12-2024)

7004, Part I, line 1. “Foreign-owned U.S. DE” should be
written across the top of Form 7004.
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.
For further general information, see the Instructions for
Form 7004.

Electronic Filing of Form 5472

If you file your income tax return electronically, see the
instructions for your income tax return for general
information about electronic filing.
If you are a foreign-owned U.S. DE, you cannot file
Form 5472 electronically. See Foreign-owned U.S.
CAUTION DEs under When 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).

Penalties
Penalties for failure to file Form 5472. A penalty of
$25,000 will be assessed on any reporting 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.
Note. Filing a substantially incomplete Form 5472
constitutes a failure to file Form 5472.
Each member of a group of 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.
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.

Record Maintenance Requirements

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’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 reporting corporations with
related party transactions of de minimis value.
Instructions for Form 5472 (Rev. 12-2024)

Specific Instructions
Part I—Reporting Corporation
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.
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, U.S. Income Tax Return of a Foreign
Corporation, Schedule L, line 17, column (d).
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 1120-F for a list of principal business
activities and their associated codes.
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 (FMV) of the nonmonetary and less than full
consideration transactions reported in Part VI. Do not
complete line 1f if the reportable transaction is with a U.S.
related party.
Line 1g. File a separate Form 5472 for each foreign or
U.S. person who is a related party with which the reporting
corporation had a reportable transaction. Enter the total
number of Forms 5472 (including this one) being filed for
the tax year.
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).
Line 1j. Check the box if this is the first year the U.S.
reporting 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.
Line 2. For purposes of this line:
• Foreign person has the same meaning as provided
earlier under Definitions; and
• 50% direct or indirect ownership is determined by
applying the constructive ownership rules of section 318
3

with the modifications listed under the definition of 25%
foreign shareholder, earlier.
Line 3. Check this box if you are a foreign-owned U.S.
DE.

Part II—25% Foreign 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.
The form provides sufficient space to report information
for two direct 25% foreign shareholders and two ultimate
indirect 25% foreign shareholders. If more space is
needed, show the information requested in Part II on an
attached sheet.
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.
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.

Report on lines 6a through 6e information about the
ultimate indirect 25% foreign shareholder who owns (by
vote or value) the largest percentage of the stock of the
U.S. reporting corporation.
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.
Lines 4b(1), 5b(1), 6b(1), and 7b(1). For each 25%
foreign 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.
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, enter the reference ID number
(defined later) you have assigned to the 25% foreign
shareholder.
Reference ID number. A 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 the 25% foreign
shareholder or related foreign party in order to keep track
4

of such foreign person from tax year to tax year. The
reference ID number must meet the requirements set forth
later.
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.
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.
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 reference ID number falls out of use (for
example, the 25% foreign 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.
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.
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
shareholder or related foreign party.
In the case of an entity 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 shareholder
or related foreign party to have an EIN for this election. For
the first tax year that Form 5472 is filed after an entity
classification election is 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 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.
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 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.
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 identification
Instructions for Form 5472 (Rev. 12-2024)

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 foreign-owned U.S. DE, and do not have an
FTIN, leave the block blank.
Lines 6a–6e and lines 7a–7e. Attach an explanation of
the attribution of ownership. See Rev. Proc. 91-55, and
Regulations section 1.6038A-1(e).

Part III—Related Party

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.

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.
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.

Reasonable estimates. When actual amounts are not
determinable, enter reasonable estimates (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 consideration
(U.S. currency or foreign currency) was the sole
consideration paid or received during the tax year of the
reporting 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.
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.”
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).
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).
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
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.

Part IV—Monetary Transactions
Between Reporting Corporations and
Foreign Related Party

Note. The term “cost sharing 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).

Note. Do not complete Part IV for transactions with a
domestic 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.

When completing Part IV or Part VI, the terms “paid”
and “received” include accrued payments and accrued
receipts.
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
transaction(s) equal to the percentage of its partnership
interest. This rule does not apply if the reporting
corporation owns a less-than-25% interest in the
partnership. The rules of attribution apply when
determining the reporting corporation’s percentage of
partnership interest.
Instructions for Form 5472 (Rev. 12-2024)

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.
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 method. If the outstanding balance
method is used, enter the beginning and ending
outstanding balances for the tax year on lines 31a and
5

31b. If the monthly average method is used, skip line 31a
and enter the monthly average for the tax year on line 31b.
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,
Limitation on Business Interest Expense Under Section
163(j). Any amounts accrued or paid in excess of the
amount 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.
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 into account in determining the taxable
income of the reporting corporation.

Part V—Reportable Transactions of a
Reporting Corporation That Is a
Foreign-Owned U.S. DE

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.

Part VI—Nonmonetary and
Less-Than-Full Consideration
Transactions Between the Reporting
Corporation and the Foreign Related
Party
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 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:
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;
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
3. A reasonable estimate of the FMV of all properties
and services exchanged, if possible, or some other
reasonable indicator of value.
See the instructions for Part IV, earlier, for information
on reasonable estimates and small amounts.
6

Part VII—Additional Information

!

All reporting corporations must complete the
additional information in Part VII.

CAUTION

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
corporation’s allocable share of interest or royalty paid or
accrued by the partnership) for which a deduction is
disallowed under section 267A.
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
instrument, or a payment to a reverse hybrid), provided
that the payment or accrual is to a related party (or
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 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 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).
Extent to which deduction is disallowed. When
section 267A applies to interest or royalty paid or accrued
pursuant to a hybrid 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). 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 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 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,
Instructions for Form 5472 (Rev. 12-2024)

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.
See Form 8993, Section 250 Deduction for
Foreign-Derived Intangible Income (FDII) and Global
Intangible Low-Taxed Income (GILTI), and its instructions
for information on the section 250 deduction.
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).
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).

Lines 43a and 43b

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).
Line 43a. Check the “Yes” box if the reporting corporation
issued a 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 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.
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 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
Instructions for Form 5472 (Rev. 12-2024)

measured by the FMV of the property distributed and/or
acquired).
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
instrument deemed exchanged for stock) of the debt
instrument 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 1.1275-1(b)(1).

Part VIII—Cost Sharing Arrangement
(CSA)

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.
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.
Line 47. Enter the reporting corporation’s share of
reasonably anticipated benefits (RAB) for the CSA during
the tax year. See 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.
Lines 48b and 48c. See Regulations section 1.482-7 for
more information on determining whether stock-based
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 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 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
7

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 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.
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 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.

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” 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).
Base erosion payments also include amounts paid or
accrued by the reporting corporation to a foreign related
party in connection with the acquisition of depreciable or
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 Regulations section
1.59A-3(b)(1)(iii)), 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)(B) and Regulations section 1.59A-3(c) for further
details.
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).

8

Line 52. Enter the amount of qualified derivative
payments made by the reporting corporation. The term
“qualified derivative payment” generally means any
payment made by a taxpayer according to a derivative
with respect to which the taxpayer:
• 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);
• Treats any gain or loss so recognized as ordinary; and
• Treats the character of all items of income, deduction,
gain, or loss with respect to a payment according to the
derivative as ordinary.
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.
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 will vary
depending on individual circumstances. The estimated
burden for business taxpayers filing this form is approved
under OMB control number 1545-0123. The estimated
burden for all other taxpayers who file this form is:
Recordkeeping . . . . . . . . . . . . . . .

17 hr., 42 min.

Learning about the law or the
form . . . . . . . . . . . . . . . . . . . . . .

3 hr., 4 min.

Preparing and sending the form to
the IRS . . . . . . . . . . . . . . . . . . . .

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.

Instructions for Form 5472 (Rev. 12-2024)