Foreign Sales Corporation - FSC

AAA

DEFINITION of 'Foreign Sales Corporation - FSC'

A defunct provision in the U.S. federal income tax code which allowed for reduction in taxes on income derived from sales of exported goods. The code required the use of a subsidiary entity in a foreign country which existed for the purposes of selling the exported goods. The FSC evolved from 1971 tax legislation which provided benefits for domestic international sales corporations.

INVESTOPEDIA EXPLAINS 'Foreign Sales Corporation - FSC'

The tax provision was disputed by several countries on the grounds that is constituted an export subsidy that was not allowed under a certain international trade treaties. The foreign sales corporation was eliminated by the Extraterritorial Income Exclusion Act in 2000 which introduced new rules for income not subject to U.S taxation.



RELATED TERMS
  1. Foreign Corrupt Practices Act

    A United States law passed in 1977 which prohibits U.S. firms ...
  2. Foreign

    1. A non-U.S. company with securities trading on the North American ...
  3. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at ...
  4. Tax Evasion

    An illegal practice where a person, organization or corporation ...
  5. Tax Shelter

    A legal method of minimizing or decreasing an investor's taxable ...
  6. Controlled Foreign Corporation ...

    A corporate entity that is registered and conducts business in ...
Related Articles
  1. Safe Tax Planning For High-Net-Worth ...
    Taxes

    Safe Tax Planning For High-Net-Worth ...

  2. 10 Most Overlooked Tax Deductions
    Taxes

    10 Most Overlooked Tax Deductions

  3. That's A Tax Break?
    Taxes

    That's A Tax Break?

  4. New Tax Breaks You Need To Know
    Savings

    New Tax Breaks You Need To Know

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center