International Tax

What is a Foreign Sales Corporation (FSC)?

Under U.S. law, an FSC is a foreign corporation or a U.S. possessions corporation that is entitled to exclude certain "exempt foreign trade income" from taxation in the United States. A foreign corporation must meet a number of eligibility requirements in order to take advantage of the FSC exemption, including a requirement that its country of organization have a tax information exchange agreement with the United States. The FSC provisions were enacted by the Tax Reform Act of 1984 to replace the DISC provisions.

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