Foreign Sales Corporation


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Foreign Sales Corporation (FSC)

A special type of corporation created by the Tax Reform Act of 1984 that is designed to provide a tax incentive for exporting U.S.-produced goods.

Foreign Sales Corporation

An exporting corporation in the United States. Exporters may register as foreign sales corporations in order to receive certain tax advantages. Foreign sales corporations must have an office in a country with an exchange of information agreement with the United States and have at least one member of the board of directors residing in that country. This structure was created by the Tax Reform Act of 1984, and was formerly called a Domestic International Sales Corporation.
References in periodicals archive ?
5 of the DSU in its tax treatment of foreign sales corporations (FSCs).
Essentially, this pre-1985 system of tax deferral for export income was replaced by the exemption system of Foreign sales corporations (FSCs), now also repealed.
income tax offered to foreign sales corporations (FSCs).
Taxpayers cannot claim a credit for taxes paid or accrued by a Foreign Sales Corporation (FSC) on its taxable income attributable to foreign trade, as defined by Internal Revenue Code section 923(b), and must compute a separate limitation on such income.
IT-MAP is made up of four modular components: International Electronic Tax Package (I-ETP) software for collecting, classifying and adjusting financial accounts; Foreign Tax Credit (FTC) software for calculating foreign tax credit and generating Form 1118; Controlled Foreign Corporation (CFC) software for analyzing earnings and profits, as well as Subpart F income and generating Form 547 1; and Foreign Sales Corporation (FSC) software for handling grouping and pricing alternatives and calculations, as well as generating Form 1120-FSC.
Repeal of the foreign sales corporation and extraterritorial income exclusion binding contract transition rules, due to the risk of World Trade Organization sanctions (TIPRA Section 513);
foreign sales corporation (FSC)/Extraterritorial Income (ETI) tax regimes.
Foreign sales corporation commissions (and extraterritorial income exclusions) and subsequent adjustments.
He reported on his firm's utilization of a foreign sales corporation (FSC) in the past and its current use of an extraterritorial income regime (ETI) to compete in overseas markets.
exporters, Congress set up the foreign sales corporation (FSC) rules.
j) The Foreign Sales Corporation Act: this act provides exemption from income tax for qualified income arising from foreign trade transactions.
Meagher advised the chairman on fundamental tax reform, Internet taxation, and the legislation replacing the Foreign Sales Corporation (FCS) provisions of the Internal Revenue Code, following a WTO decision on the subject.

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