§541. Imposition of personal holding company tax

In addition to other taxes imposed by this chapter, there is hereby imposed for each taxable year on the undistributed personal holding company income (as defined in section 545) of every personal holding company (as defined in section 542) a personal holding company tax equal to 39.6 percent of the undistributed personal holding company income.

(Aug. 16, 1954, ch. 736, 68A Stat. 182 ; Feb. 26, 1964, Pub. L. 88–272, title II, §225(a), 78 Stat. 79 ; Aug. 13, 1981, Pub. L. 97–34, title I, §101(d)(2), 95 Stat. 184 ; Oct. 22, 1986, Pub. L. 99–514, title I, §104(b)(8), 100 Stat. 2105 ; Nov. 5, 1990, Pub. L. 101–508, title XI, §11802(f)(1), 104 Stat. 1388–530 ; Aug. 10, 1993, Pub. L. 103–66, title XIII, §§13201(b)(2), 13202(b), 107 Stat. 459 , 461.)

Amendments

1993-Pub. L. 103–66, §13202(b), substituted "39.6 percent" for "36 percent".

Pub. L. 103–66, §13201(b)(2), substituted "36 percent" for "28 percent".

1990-Pub. L. 101–508 struck out "(38.5 percent in the case of taxable years beginning in 1987)" after "28 percent".

1986-Pub. L. 99–514 substituted "28 percent (38.5 percent in the case of taxable years beginning in 1987)" for "50 percent".

1981-Pub. L. 97–34 substituted "50 percent" for "70 percent".

1964-Pub. L. 88–272 reduced the tax from 75 percent of undistributed income not in excess of $2,000, and 85 percent when in excess of $2,000, to 70 percent.

Effective Date of 1993 Amendment

Amendment by Pub. L. 103–66 applicable to taxable years beginning after Dec. 31, 1992, see sections 13201(c) and 13202(c) of Pub. L. 103–66, set out as notes under section 1 of this title.

Effective Date of 1986 Amendment

Amendment by Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, see section 151(a) of Pub. L. 99–514, set out as a note under section 1 of this title.

Effective Date of 1981 Amendment

Amendment by Pub. L. 97–34 applicable to taxable years beginning after Dec. 31, 1981, see section 101(f)(1) of Pub. L. 97–34, set out as a note under section 1 of this title.

Effective Date of 1964 Amendment

Amendment by Pub. L. 88–272 applicable to taxable years beginning after Dec. 31, 1963, see section 225(l) of Pub. L. 88–272 set out as a note under section 316 of this title.

Savings Provision

For provisions that nothing in amendment by Pub. L. 101–508 be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to Nov. 5, 1990, for purposes of determining liability for tax for periods ending after Nov. 5, 1990, see section 11821(b) of Pub. L. 101–508, set out as a note under section 29 of this title.

Cross References

Adjustments for-

Accumulated taxable income as excluding deduction for tax imposed by this section, see section 535 of this title.

Undistributed foreign personal holding company income as excluding deduction for tax imposed by this section, see section 556 of this title.

Undistributed personal holding company income as excluding deduction for tax imposed by this section, see section 545 of this title.

Section Referred to in Other Sections

This section is referred to in sections 26, 111, 535, 542, 545, 546, 547, 556, 563, 882, 936, 992, 6683 of this title.