Part III—Adjustment for Certain Taxes Under Section 56A(c)(5)

Federal income taxes, and income, war profits, and excess profits taxes (within the meaning of section 901) with respect to any foreign country or U.S. territory which are taken into account on the corporation’s AFS are disregarded for AFSI purposes. Complete Part III to adjust for taxes described in section 56A(c)(5).

Line 1. Enter any income, war profits, and excess profits taxes (within the meaning of section 901) with respect to any foreign country or U.S. territory which are taken into account on the corporation’s AFS in the current income tax provision. Exclude any CFC income, war profits, and excess profits taxes (within the meaning of section 901) with respect to a foreign country or U.S. territory which are taken into account on the CFC’s AFS in the current income tax provision.

Line 2. Enter federal income taxes which are taken into account on the corporation’s AFS in the current income tax provision.

Line 3. Enter any income, war profits, and excess profits taxes (within the meaning of section 901) with respect to any foreign country or U.S. territory which are taken into account on the corporation’s AFS in the deferred income tax provision. Exclude any CFC income, war profits, and excess profits taxes (within the meaning of section 901) with respect to a foreign country or U.S. territory which are taken into account on the CFC’s AFS in the deferred income tax provision.

Line 4. Federal deferred tax provision. Enter federal income taxes which are taken into account on the corporation’s AFS in the deferred income tax provision.

Line 5. Enter the federal income taxes and income, war profits, and excess profits taxes (within the meaning of section 901) with respect to a foreign country or U.S. territory taken into account on the corporation’s AFS as part of equity method investment income. Exclude any CFC income, war profits, and excess profits taxes (within the meaning of section 901) with respect to a foreign country or U.S. territory which are taken into account on the CFC’s AFS as part of equity method investment income.

Lines 6a through 6h. Reserved for future use.

Line 5. The amount of the FSNOL adjustment for the tax year is limited to the lesser of:

1. The aggregate amount of FSNOL carryovers to the tax year, or

2. 80% of AFSI computed without regard to the FSNOL deduction allowed.

12 Instructions for Form 4626 (2025)

Line 6z. Income taxes in other places. Enter other federal income taxes and income, war profits, and excess profits taxes (within the meaning of section 901) with respect to a foreign country or U.S. territory taken into account on the AFS in determining net income in other places. Exclude any CFC income, war profits, and excess profits taxes (within the meaning of section 901) with respect to a foreign country or U.S. territory which are taken into account on the CFC’s AFS in determining net income in other places.