12 2 STA T .39 31 PUBLIC LA W 11 0– 3 4 3 —O CT. 3 , 200 8‘ ‘ (i ii )CO O RDINAT ION W IT HSPEC IA L R U LE .—Par a -g ra ph ( 3 )( B ) s ha l l not appl y to any c o m p e nsation to w hich cla u se (i) applies. ‘‘( 2 )CO M PREHENSI V E F OREI G N INCOME TA X .— T he term ‘com- prehensi v e f oreign income ta x’ means , with respect to any foreign person, the income tax of a foreign country if— ‘‘( A ) such person is eligi b le for the benefits of a com- prehensive income tax treaty between such foreign country an d the U nited S tates, or ‘‘(B) such person demonstrates to the satisfaction of the Secretary that such foreign country has a comprehen- sive income tax. ‘‘(3) N ON Q UALIFIED DEFERRED COMPENSATION PLAN.— ‘‘(A) I N GENERAL.—The term ‘non q ualified deferred compensation plan’ has the meaning given such term under section 409 A(d), except that such term shall include any plan that provides a right to compensation based on the appreciation in value of a specified number of equity units of the service recipient. ‘‘(B) E XCEPTION.—Compensation shall not be treated as deferred for purposes of this section if the service pro- vider receives payment of such compensation not later than 1 2 months after the end of the taxable year of the service recipient during which the right to the payment of such compensation is no longer sub j ect to a substantial ris k of forfeiture. ‘‘(4) EXCEPTION FOR CERTAIN COMPENSATION WITH RESPECT TO EFFECTIVEL Y CONNECTED INCOME.—In the case a foreign corporation with income which is taxable under section 8 82, this section shall not apply to compensation which, had such compensation had been paid in cash on the date that such compensation ceased to be subject to a substantial risk of forfeiture, would have been deductible by such foreign corpora- tion against such income. ‘‘( 5 ) APPLICATION OF RULES.— R ules similar to the rules of paragraphs (5) and ( 6 ) of section 409A(d) shall apply. ‘‘(e) REGULATIONS.—The Secretary shall prescribe such regula- tions as may be necessary or appropriate to carry out the purposes of this section, including regulations disregarding a substantial risk of forfeiture in cases where necessary to carry out the purposes of this section.’’. (b) CONFORMING AMENDMENT.—Section 26(b)(2), as amended by the H ousing Assistance Tax Act of 2008, is amended by striking ‘‘and’’ at the end of subparagraph ( V ), by striking the period at the end of subparagraph ( W ) and inserting ‘‘, and’’, and by adding at the end the following new subparagraph
‘‘( X ) section 45 7 A(c)(1)(B) (relating to determinability of amounts of compensation).’’. (c) CLERICAL AMENDMENT.—The table of sections of subpart B of part II of subchapter E of chapter 1 is amended by inserting after the item relating to section 457 the following new item: ‘ ‘ Sec.457A . Nonqualif ie d defe r red co mp en s a t ion from certain ta x indifferent par - ties. ’ ’. (d) EFFECTIVE D ATE.— (1) IN GENERAL.—Except as otherwise provided in this sub- section, the amendments made by this section shall apply to 26USC457Anote. 26 USC 26. D e adli ne.
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