Foreign Personal Holding Company Law and Legal Definition

Foreign personal holding company is a foreign corporation, the primary part of the income of which is personal holding company income and the stock of which is owned to the extent of 50 percent in value by less than six individual United States citizens or residents.

A foreign corporation which comes within the classification of a foreign personal holding company is not subject to taxation. The fact that a foreign corporation is a foreign personal holding company does not relieve the corporation from liability for the taxes imposed generally upon foreign corporations. [26 CFR 1.552-1].