Sec. 323. EXCEPTION FOR INTERESTS HELD BY FOREIGN RETIREMENT OR PENSION FUNDS
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## SEC. 323 EXCEPTION FOR INTERESTS HELD BY FOREIGN RETIREMENT OR PENSION FUNDS ###
(a)In General **[**[26 U.S.C. 897](/us/usc/t26/s897)**]** Section 897, as amended by the preceding provisions of this Act, is amended by adding at the end the following new subsection: > > ### “(l) Exception for Interests Held by Foreign Pension Funds > > > #### “(1) In general > > This section shall not apply to any United States real property interest held directly (or indirectly through 1 or more partnerships) by, or to any distribution received from a real estate investment trust by— > > > ##### “(A) > > a qualified foreign pension fund, or > > > ##### “(B) > > any entity all of the interests of which are held by a qualified foreign pension fund. > > > #### “(2) Qualified foreign pension fund > > For purposes of this subsection, the term ‘qualified foreign pension fund’ means any trust, corporation, or other organization or arrangement— > > > ##### “(A) > > which is created or organized under the law of a country other than the United States, > > > ##### “(B) > > which is established to provide retirement or pension benefits to participants or beneficiaries that are current or former employees (or persons designated by such employees) of one or more employers in consideration for services rendered, > > > ##### “(C) > > which does not have a single participant or beneficiary with a right to more than five percent of its assets or income, > > > ##### “(D) > > which is subject to government regulation and provides annual information reporting about its beneficiaries to the relevant tax authorities in the country in which it is established or operates, and > > > ##### “(E) > > with respect to which, under the laws of the country in which it is established or operates— > > > ###### “(i) > > contributions to such trust, corporation, organization, or arrangement which would otherwise be subject to tax under such laws are deductible or excluded from the gross income of such entity or taxed at a reduced rate, or > > > ###### “(ii) > > taxation of any investment income of such trust, corporation, organization or arrangement is deferred or such income is taxed at a reduced rate. > > > #### “(3) Regulations > > The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subsection.” > . ###
(b)Exemption From Withholding Section 1445(f)(3) is amended by striking “ any person ” and all that follows and inserting the following: > “any person other than— > > > ##### “(A) > > a United States person, and > > > ##### “(B) > > except as otherwise provided by the Secretary, an entity with respect to which section 897 does not apply by reason of subsection
(l)thereof.” > . ###
(c)Effective Date **[**[26 U.S.C. 897 note](/us/usc/t26/s897)**]** The amendments made by this section shall apply to dispositions and distributions after the date of the enactment of this Act.
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Sec. 323
EXCEPTION FOR INTERESTS HELD BY FOREIGN RETIREMENT OR PENSION FUNDS
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