sections 894 or 7852(d) of the Internal Revenue Code of 1986, the amendments made by this section shall apply without regard to any treaty obligation of the United States. 11. Limitations on treaty benefits (a) Limitation for certain deductible payments Section 894 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (d) Limitation on treaty benefits for certain deductible payments (1) In general In the case of any deductible related-party payment, any withholding tax imposed under chapter 3 (and any tax imposed under subpart A or B of this part) with respect to such payment may not be reduced under any treaty of the United States unless any such withholding tax would be reduced under a treaty of the United States if such payment were made directly to the foreign parent corporation. (2) Deductible related-party payment For purposes of this subsection, the term deductible related-party payment means any payment made, directly or indirectly, by any person to any other person if the payment is allowable as a deduction under this chapter and both persons are members of the same foreign controlled group of entities. (3) Foreign controlled group of entities For purposes of this subsection— (A) In general The term foreign controlled group of entities means a controlled group of entities the common parent of which is a foreign corporation. (B) Controlled group of entities The term controlled group of entities means a controlled group of corporations as defined in section 1563(a)(1), except that— (i) more than 50 percent shall be substituted for at least 80 percent each place it appears therein, and (ii) the determination shall be made without regard to subsections (a)(4) and (b)(2) of section 1563. A partnership or any other entity (other than a corporation) shall be treated as a member of a controlled group of entities if such entity is controlled (within the meaning of section 954(d)(3)) by members of such group (including any entity treated as a member of such group by