Qualified Subsidiary (Internal Revenue Code) Law and Legal Definition

According to 26 USCS § 501 (Title 26, Internal Revenue Code; Subtitle A, Income Taxes; Chapter 1, Normal Taxes and surtaxes; Subchapter F. Exempt Organizations; Part I, General Rule), the term "qualified subsidiary" means “any corporation if, at all times during the period such corporation was in existence, 100 percent of the stock of such corporation is held by the corporation or trust described in subparagraph (A).” (26 USCS § 501)