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 20 percent of the undistributed personal holding company income.
Aug. 16, 1954, ch. 736 68A Stat. 182 Pub. L. 88–272, title II, § 225(a)78 Stat. 79 Pub. L. 97–34, title I, § 101(d)(2)95 Stat. 184 Pub. L. 99–514, title I, § 104(b)(8)100 Stat. 2105 Pub. L. 101–508, title XI, § 11802(f)(1)104 Stat. 1388–530 Pub. L. 103–66, title XIII107 Stat. 459 Pub. L. 107–16, title I, § 101(c)(5)115 Stat. 43 Pub. L. 108–27, title III, § 302(e)(6)117 Stat. 764 Pub. L. 112–240, title I, § 102(c)(1)(B)126 Stat. 2319 (, ; , , ; , , ; , , ; , , ; , §§ 13201(b)(2), 13202(b), , , 461; , , ; , , ; , , .)
Editorial Notes
Amendments
Pub. L. 112–2402013— substituted “20 percent” for “15 percent”.
Pub. L. 108–272003— substituted “equal to 15 percent of the undistributed personal holding company income.” for “equal to the product of the highest rate of tax under section 1(c) and the undistributed personal holding company income.”
Pub. L. 107–162001— substituted “equal to the product of the highest rate of tax under section 1(c) and the undistributed personal holding company income.” for “equal to 39.6 percent of the undistributed personal holding company income.”
Pub. L. 103–66, § 13202(b)1993—, substituted “39.6 percent” for “36 percent”.
Pub. L. 103–66, § 13201(b)(2), substituted “36 percent” for “28 percent”.
Pub. L. 101–5081990— struck out “(38.5 percent in the case of taxable years beginning in 1987)” after “28 percent”.
Pub. L. 99–5141986— substituted “28 percent (38.5 percent in the case of taxable years beginning in 1987)” for “50 percent”.
Pub. L. 97–341981— substituted “50 percent” for “70 percent”.
Pub. L. 88–2721964— 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.
Statutory Notes and Related Subsidiaries
Effective Date of 2013 Amendment
Pub. L. 112–240section 102(d)(1) of Pub. L. 112–240section 1 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .
Effective Date of 2003 Amendment
Pub. L. 108–27section 302(f) of Pub. L. 108–27section 1 of this titleAmendment by applicable, except as otherwise provided, to taxable years beginning after , see , set out as an Effective and Termination Dates of 2003 Amendment note under .
Effective Date of 2001 Amendment
Pub. L. 107–16section 101(d) of Pub. L. 107–16section 1 of this titleAmendment by applicable to taxable years beginning after , see , set out as an Effective and Termination Dates of 2001 Amendment note under .
Effective Date of 1993 Amendment
Pub. L. 103–66Pub. L. 103–66section 1 of this titleAmendment by applicable to taxable years beginning after , see sections 13201(c) and 13202(c) of , set out as notes under .
Effective Date of 1986 Amendment
Pub. L. 99–514section 151(a) of Pub. L. 99–514section 1 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .
Effective Date of 1981 Amendment
Pub. L. 97–34section 101(f)(1) of Pub. L. 97–34section 1 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .
Effective Date of 1964 Amendment
Pub. L. 88–272lPub. L. 88–272section 316 of this titleAmendment by applicable to taxable years beginning after , see section 225() of set out as a note under .
Savings Provision
Pub. L. 101–508section 11821(b) of Pub. L. 101–508section 45K of this titleFor provisions that nothing in amendment by be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to , for purposes of determining liability for tax for periods ending after , see , set out as a note under .