Fillable Form 5472

What is Form 5472?

Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business, is an Internal Revenue Service (IRS) form used by U.S. corporations with 25% or more foreign ownership, or foreign corporations that do business or trade in the United States.

Use IRS Form 5472 to provide information required in the Internal Revenue Code under sections 6038A and 6038C when reportable transactions occur with a foreign or domestic related party. You must report the existence of all related parties in Form 5472 and fill out a separate form for each foreign owner. If you’re filing on behalf of a foreign-owned U.S. company, you may also have to file Form 1120, U.S. Corporation Income Tax.

The form required the disclosure of the foreign shareholders’ name, address, country of citizenship, organization or incorporation, and the nature and amount of the reportable transaction with each foreign shareholder. Note that this form is required where any one foreign person owns 25% or more of the U.S. corporation.

How to fill out Form 5472?

Completing the form requires time and effort, however, the instructions below will help you answer the form correctly and accurately. Be very certain to comprehend and follow these instructions as they will serve as your guide in accomplishing the form. With PDFRun, you can electronically fill out and download a PDF copy of IRS Form 5472 in a matter of minutes.

Tax Year

Enter the beginning and ending dates of the tax year using this format: Month, Year.

Part I – Reporting Corporation

All reporting corporations must complete Part I.

Line 1a

Enter the name of the reporting corporation.

Enter the number, street, and room suite number of the reporting corporation’s address. If the Post Office does not deliver mail to the street address and the corporation has a P.O. box, enter the box number instead.

Enter the city or town, state, and ZIP code of the reporting corporation’s address. If a 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 1b

Enter your employer identification number.

Line 1c

Enter your total assets in U.S. dollars.

Line 1d

Enter your principal business activity.

Line 1e

Enter your principal business activity code.

Line 1f

Do not complete this line if the reportable transaction is with a U.S.-related party. Otherwise, enter the total value in U.S. dollars of all foreign-related party transactions reported in Parts IV and VI of this form. 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.

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. Then, 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 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 1i

Mark the box if this is a consolidated filing of Form 5472.

Line 1j

Mark 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 agreement (CSA) and enter the total number of Parts VIII attached to Form 5472.

Line 1l

Enter the country of incorporation.

Line 1m

Enter the date of incorporation.

Line 1n

Enter the countries under whose laws the reporting corporation files an income tax as a resident.

Line 1o

Enter the principal countries where business is conducted. Do not include any countries in which business is conducted solely through a subsidiary. Do not enter “worldwide” instead of listing the countries.

Line 2

Mark the box if either of the following is true:

• At any time during the tax year, any foreign person owned, either directly or indirectly, at least 50% of the total voting power of classes of the stock of the reporting corporation entitled to vote.
• At any time during the tax year, any foreign person owned, either directly or indirectly, at least 50% of the total value of all classes of stock of the reporting corporation.

Line 3

Mark the box if you are a 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.

Part II – 25% Foreign Shareholder

Only 25% foreign-owned U.S. corporations, including foreign-owned U.S. DEs must complete Part II.

Mark 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 4a and 5a

Enter the name and address of your direct 25% foreign shareholder.

Lines 4b(1) and 5b(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 employer identification number (EIN).

Lines 4b(2) and 5b(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. However, filers are permitted to enter both an employer identification number (EIN) and a reference ID number. If applicable, enter the reference ID number you have assigned to the 25% foreign shareholder.

Lines 4b(3) and 5b(3)

A foreign-owned U.S. DE must enter a foreign taxpayer identification number (FTIN), if any, for each direct 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”. If you have a U.S. identifying number and reference ID number, you can enter it in their appropriate lines.

Filers, 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 the appropriate lines. If you are not a foreign-owned U.S. DE, and do not have an FTIN, leave this space blank.

Lines 4c and 5c

Enter the principal countries where the business is conducted.

Lines 4d and 5d

Enter the country of citizenship, organization, or incorporation.

Lines 4e and 5e

Enter the countries under whose laws your direct 25% foreign shareholder files his income tax return as a resident.

Note: For lines 6a-6e and 7a-7e, attach an explanation of the attribution of ownership.

Lines 6a and 7a

Enter the name and address of your ultimate indirect 25% foreign shareholder.

Lines 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 employer identification number (EIN).

Lines 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. However, filers are permitted to enter both an employer identification number (EIN) and a reference ID number. If applicable, enter the reference ID number you have assigned to the 25% foreign shareholder.

Lines 6b(3) and 7b(3)

A foreign-owned U.S. DE must enter a foreign taxpayer identification number (FTIN), if any, for each ultimate indirect 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”. If you have a U.S. identifying number and reference ID number, you can enter it in their appropriate lines.

Filers, 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 the appropriate lines. If you are not a foreign-owned U.S. DE, and do not have an FTIN, leave this space blank.

Lines 6c and 7c

Enter the principal countries where the business is conducted.

Lines 6d and 7d

Enter the country of citizenship, organization, or incorporation.

Lines 6e and 7e

Enter the countries under whose laws your ultimate indirect 25% foreign shareholder files his income tax return as a resident.

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.

Mark the appropriate box if the related party is a domestic or foreign person with which the reporting corporation had reportable transactions during the tax year. You may select:

• A foreign person
• A U.S. person

Line 8a

Enter the name and address of the related party.

Line 8b(1)

Enter the related party’s U.S. identifying number, if any. For individuals, enter a social security number (SSN), or an individual taxpayer identification number (ITIN) issued by the IRS. For all other entities, enter an employer identification number (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 the preceding line. 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.

Line 8b(3)

Enter the foreign taxpayer identification number (FTIN) of the related party, if any.

Line 8c

Enter the principal business activity.

Line 8d

Enter the principal business activity code.

Line 8e

Mark the boxes in which your relationship with the related party may apply. You may select:

• Related to reporting corporation
• Related to 25% foreign shareholder
• 25% foreign shareholder

Line 8f

Enter the principal countries where the business is conducted.

Line 8g

Enter the countries under whose laws your related party files an income tax return as a resident.

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

Part IV must be completed if the “foreign person” box is checked in the heading of Part III. Do not complete this part for transactions with a domestic related party.

Mark the box if you used reasonable estimates. 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.

Line 9

Enter the amount of sales of stock in trade in U.S. dollars.

Line 10

Enter the amount of sales of tangible property, other than stock in trade, in U.S. dollars.

Line 11

Enter the amount of platform contribution transaction payments received by the reporting corporation (without giving effect to any netting of payments due and owed), in U.S. dollars.

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 cost-sharing agreement (CSA) that was not in effect before January 5, 2009.

Line 12

Enter the amount of cost sharing transaction payments received by the reporting corporation (without giving effect to any netting of payments due and owed), in U.S. dollars.

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 cost-sharing agreement (CSA) that was not in effect before January 5, 2009.

Line 13a

Enter the amount of rents received, other than intangible property rights, in U.S. dollars.

Line 13b

Enter the amount of royalties received, other than intangible property rights, in U.S. dollars.

Line 14

Enter the amount of sales, leases, and licenses of intangible property rights (such as patents, trademarks, secret formulas) in U.S. dollars.

Line 15

Enter the amount of consideration received for technical, managerial, engineering, construction, scientific, or like services in U.S. dollars.

Line 16

Enter the amount of commissions received in U.S. dollars.

Lines 17a and 17b

Enter the 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.

Line 18

Enter the amount of interest received in U.S. dollars.

Line 19

Enter the amount of premiums received for insurance or reinsurance in U.S. dollars.

Line 20

Enter the amount of loan guarantee fees received in U.S. dollars.

Line 21

Enter other 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 22

Enter the combined amounts on lines 9 through 21.

Line 23

Enter the amount of purchases of stock in trade in U.S. dollars.

Line 24

Enter the amount of purchases of tangible property, other than stock in trade, in U.S. dollars.

Line 25

Enter the amount of platform contribution transaction payments paid by the reporting corporation (without giving effect to any netting of payments due and owed), in U.S. dollars.

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 cost-sharing agreement (CSA) that was not in effect before January 5, 2009.

Line 26

Enter the amount of cost sharing transaction payments paid by the reporting corporation (without giving effect to any netting of payments due and owed), in U.S. dollars.

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 cost-sharing agreement (CSA) that was not in effect before January 5, 2009.

Line 27a

Enter the amount of rents paid, other than intangible property rights, in U.S. dollars.

Line 27b

Enter the amount of royalties paid, other than intangible property rights, in U.S. dollars.

Line 28

Enter the amount of purchases, leases, and licenses of intangible property rights (such as patents, trademarks, secret formulas) in U.S. dollars.

Line 29

Enter the amount of consideration paid for technical, managerial, engineering, construction, scientific, or like services in U.S. dollars.

Line 30

Enter the amount of commissions paid in U.S. dollars.

Lines 31a and 31b

Enter the 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 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

Enter the amount of interest paid or accrued in U.S. dollars.

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. See 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 33

Enter the amount of premiums paid for insurance or reinsurance in U.S. dollars.

Line 34

Enter the amount of loan guarantee fees paid in U.S. dollars.

Line 35

Enter other 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.

Line 36

Enter the combined amounts on lines 23 through 35.

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

Mark the box if you are a foreign-owned DE that has 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 in an attached statement.

Part VI – Nonmonetary and Less-Than-Full Consideration Transactions Between the Reporting Corporation and the Foreign Related Party

Do not complete Part VI for transactions with a domestic related party.

If the related party is a foreign person, the reporting corporation must mark the box and 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:

• 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.
• 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.
• A reasonable estimate of the fair market value (FMV) of all properties and services exchanged, if possible, or some other reasonable indicator of value.

If the entire consideration received for any transaction includes both tangible and intangible property and the consideration paid is solely monetary consideration, report the transaction in Part IV instead of Part VI if the intangible property was related and incidental to the transfer of the tangible property (for example, a right to warranty services).

Part VII – Additional Information

All reporting corporations must complete Part VII.

Line 37

Mark the appropriate box if the reporting corporation imports goods from a foreign related party. You may select:

• Yes
• No

Line 38a

If your answer on the preceding line is yes, mark the appropriate box if the basis or inventory cost of the goods is greater than the customs value of imported goods. You may select:

• Yes
• No

Line 38b

If your answer on the preceding line is yes, you must attach a statement explaining the reason(s) for the difference between your inventory cost of goods and your customs value of imported goods.

Line 38c

If your answers to lines 37 and 38a are yes, mark the appropriate box if the documents you used to support the treatment of your imported goods are in existence and available in the United States at the time you’re filing this form. You may select:

• Yes
• No

Line 39

Mark the appropriate box if your foreign parent corporation is a participant in any cost sharing agreement (CSA) during the tax year. You may select:

• Yes
• No

Line 40a

Mark the appropriate box if during the tax year, the reporting corporation paid or accrued any interest or royalty for which the deduction is not allowed under section 267A. You may select:

• Yes
• No

Line 40b

If your answer to the preceding line is yes, enter the total amount of the disallowed deductions. Otherwise, leave it blank.

Line 41a

Mark the appropriate box if you’re claiming a deduction under section 250 with respect to foreign-derived intangible income (FDII) derived from transactions described in Part IV. You may select:

• Yes
• No

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 41b

If your answer on line 41a is yes, enter the amount of gross income derived from sales, leases, exchanges, or other dispositions (but not licenses) of property to the foreign-related party that the reporting corporation included in its computation of foreign-derived deduction eligible income (FDDEI).

Line 41c

If your answer on line 41a is yes, enter the amount of gross income derived from a license of property to the foreign-related party that the reporting corporation included in its computation of foreign-derived deduction eligible income (FDDEI).

Line 41d

If your answer on line 41a is yes, enter the amount of gross income-derived services provided to the foreign-related party that the reporting corporation included in its computation of foreign-derived deduction eligible income (FDDEI).

Line 42

Mark the appropriate box if the reporting corporation had any loan to or from the related party in which the safe-haven rate rules were applicable and for which they used a rate of interest within the safe-haven range. You may select:

• Yes
• No

Note: Fill in 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.

Line 43a

Mark the appropriate box if the reporting corporation made at least one distribution or acquisition during the tax year or, during the period beginning 36 months before the date of the respective acquisition or distribution and ending 36 months afterward, and if they issued or refinanced indebtedness owed to a related party. You may select:

• Yes
• No

Line 43b

If the answer to question 43a is “Yes,” provide the following:

• Line 43b(1)

Enter the amount of the distribution(s) or acquisition(s) made during the tax. Otherwise, leave this blank.

• Line 43b(2)

Enter the amount of the indebtedness owed to the related party. Otherwise, leave this blank.

Part VIII – Cost Sharing Agreement (CSA)

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.

Line 44

Enter 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 45

Mark the appropriate box if during the course of the tax year, the reporting corporation became a participant in the CSA. You may select:

• Yes
• No

Line 46

Mark the appropriate box if the CSA was in effect before January 5, 2009. You may select:

• Yes
• No

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 Intangible Drilling Costs (IDCs), enter the RAB share that was applied to IDCs incurred at the end of the year.

Line 48a

Enter the total amount of stock-based compensation deductions claimed by the reporting corporation.

Line 48b

Enter the total amount of deduction for the tax year for stock-based compensation that was granted during the term of the CSA and, at date of grant, is directly identified with, or reasonably allocable to, the intangible development activity under the CSA.

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 Intangible Drilling Costs (IDCs), including an election available with respect to options on publicly traded stock and certain other stock-based compensation.

Line 48c

Mark the appropriate box to determine if any stock-based compensation was granted during the term of the CSA to individuals who performed functions in business activities that generate cost shared intangibles that were not treated as directly identified with, or reasonably allocable to, the intangible development activity (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.

You may select:

• Yes
• No

Line 49a

Enter the total amount of intangible development costs (IDCs) for the CSA. See Regulations section 1.482-7(d) for more information on IDCs.

Line 49b

Enter the amount of intangible development costs (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. 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, certain reinsurance payments, and certain payments relating to expatriated entities.

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 which is allowed under chapter 1 for the tax year with respect to any base erosion payment. Base erosion tax benefits also include certain reductions in gross premiums with respect to certain reinsurance payments and certain reductions in gross receipts with respect to certain expatriated entities.

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 derivatives were sold for their fair market value (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.
• 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.

Line 53

This line is reserved for future use.