78
STAT.
]
PUBLIC LAW 88-272-FEB. 26, 1964
59
••(i>) Si'KCiAL Kri.Ks K()i{ APPLKATKJN (»K SKCTIOX 401(a).— "(1)
XONDI.SCKIMINATIOX
KKQl IKKMKXTS.
For
pillpOSeS
of
applying? paragraphs (8) (J^) and (4) of section 401(a) with lespec't to an individual who is treated as an employee of a domestic corporation under subsection (a) — " (A) if such individual is an officer, shareholder, or person whose principal duties consist in supervising the work of other employees of a foreign sul)sidiary of such domestic corporation, he shall be treated as having such capacity with respect to such domestic corporation; and " (B) the determination of whether such individual is a highly compensated employee shall be made by treating such individual's total compensation (determined with the application of paragraph (2) of this subsection) as compensation paid by such domestic corporation and by determining such individual's status with regard to such domestic corporation. "(2)
DETERMINATION OF COMPENSATIOX.—For
purposes
68A Stat. 134. 26 USC 401.
of
applying paragraph (5) of section 401(a) with respect to an individual who is treated as an employee of a domestic corporation under subsection (a) — " (A) the total compensation of such individual shall be the remuneration paid to such individual by the foreign subsidiary which would constitute his total compensation if his services had been performed for such domestic corporation, and the basic or regular rate of compensation of such individual shall be determined under regulations x^rescribed by the Secretary or his delegate; and " (B) such individual shall be treated as having paid the amount paid by such domestic corporation which is equivalent to the tax imposed by section 8101. "(<") IKKMIXATIOX OF S T A T I S AS DKEMED Ibri'LOYEE NOT To Bi: THEATED AS SEPAUATIOX FROM SEHVICE KOI; I^IHI'OSES OF CAIMTAL G A I N
75 Stat. 141. 26 USC 3101.
l*Ko\isi()xs.—For purposes of applying section 402(a)(2) and section 26 USC 402. 40H(a)(2) with respect to an individual who is treated as an employee 26 USC 403. of a domestic corporation under subsection (a), such individual shall not be considered as separated from the service of such domestic corporation solely by reason of the fact that— "(1) the agreement entered into by such domestic corporation under section 8121(1) which covers the employment of such 26U^C3i2U individual is terminated under the |n-ovisions of such section, "(2) such individual becomes an employee of a foreign subsidiary with respect to which such agreement does not apply, "(8) such individual ceases to be an employee of the foreign subsidiary by reason of which he is treated as an employee of such domestic corporation, if he becomes an employee of another corporation controlled by such domestic cor])()ration, or "(4) the provision of the plan described in subsection (a)(2) is terminated. " (d) DEDrcTiBiLiTY OF CoxTiMiuTioxs.—For puiposes of applying sections 404 and 40.5(c) with respect to contributions made to or gjg^ ^*^*' ^^^' under a pension, protit-sharing, stock bonus, annuity, or bond pur- 26 USC 404, chase plan by a domestic corporation, or by another corporation '*°^* which is entitled to deduct its contributions under section 404(a) (5)(B), on behalf of an individual who is treated as an emploj-ee of such domestic corporation under subsection (a) — "(1) except as provided in paragraph (2), no deducticm shall be allowed to such domestic corporation or to any other cori^oration which is entitled to deduct its contributions under such sections.
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