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Today, shareholders of a DISC continue to receive reduced income tax rates on qualifying income from exports of U.S.-made goods. A DISC is a U.S. corporation that has elected DISC status and meets certain other largely symbolic requirements. [1] A corporation so electing is not subject to U.S. Federal income tax. [2]
The foreign corporation will be subject to U.S. income tax on its effectively connected income, and will also be subject to the branch profits tax on any of its profits not reinvested in the U.S. [citation needed] Thus, many countries tax corporations under company tax rules and tax individual shareholders upon corporate distributions. Various ...
Foreign Sales Corporation (FSC) was a type of tax device allowed under the United States Internal Revenue Code that allowed companies to receive a reduction in U.S. federal income tax for profits derived from exports. The FSC was created in 1984 to replace the old export-promoting tax scheme, the Domestic International Sales Corporation, or ...
Income type: Different types of income may qualify for either the foreign tax credit or foreign tax deduction. For instance, some non-income related taxes may only be eligible for the FTD.
Source of income (for international tax) 871–898: Tax on foreign persons/corporations; inbound international rules 901–908: Foreign tax credit 911–943: Exclusions of foreign income (mostly repealed) 951–965: Taxation of U.S. shareholders of controlled foreign corporations (Subpart F) 971–999: Other international tax provisions 1001–1092
Double taxation can occur when laws from two distinct countries require the same income to be taxed. The Foreign Tax Credit (FTC) is a non-refundable tax credit designed to alleviate this burden ...
The U.S. federal and most state income tax systems tax the worldwide income of citizens and residents. [18] A federal foreign tax credit is granted for foreign income taxes. Individuals residing abroad may also claim the foreign earned income exclusion. Individuals may be a citizen or resident of the United States but not a resident of a state.
The Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), enacted as Subtitle C of Title XI (the "Revenue Adjustments Act of 1980") of the Omnibus Reconciliation Act of 1980, Pub. L. No. 96-499, 94 Stat. 2599, 2682 (Dec. 5, 1980), is a United States tax law that imposes income tax on foreign persons disposing of US real property interests.