Nonaffiliated 10 Percent Owned Corporation Law and Legal Definition

According to 26 USCS § 864 [Title 26. Internal Revenue Code; Subtitle A. Income Taxes; Chapter 1. Normal Taxes and Surtaxes; Subchapter N. Tax Based on Income from Sources Within or Without the United States; Part I. Determination of Sources of Income], nonaffiliated 10-percent owned corporation means “any corporation if--

(i) such corporation is not included in the taxpayer's affiliated group, and

(ii) members of such affiliated group own 10 percent or more of the total combined voting power of all classes of stock of such corporation entitled to vote.”