Rice, R. Michael
September 1985
FE: The Magazine for Financial Executives;Sep1985, Vol. 1 Issue 9, p11
Trade Publication
The article presents information on the significance of Foreign Sales Corporation (FSC) in the U.S. FSCs require a substantial foreign presence, which can be costly and reduce the exporters expected tax savings. In return for this, however, the exporter receives one clearcut advantage: a tangible and predictable tax exemption, in contrast to the vagaries of the Domestic International Sales Corporation tax deferral. Regulations require only that a FSC be chartered outside U.S. customs territory in an eligible jurisdiction, which includes U.S. possessions and countries that have an agreement with the U.S. to exchange tax information.


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