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Extraterritorial exclusion and the FTC.

Publication: The Tax Adviser
Publication Date: 01-MAY-02
Format: Online - approximately 498 words
Delivery: Immediate Online Access
Full Article Title: Extraterritorial exclusion and the FTC.(foreign tax credits)

Article Excerpt
More taxpayers that export goods are reaping the tax benefits from the extraterritorial income exclusion (EIE). The EIE allows a corporation to exclude qualifying foreign-trade income (FTI) from income. The EIE'S overall result is a tax rate of 29.75% (or less) on income realized from the sale of qualified export property.

However, for companies with excess foreign tax credits (FTCs), the EIE regime may have an adverse effect on a U.S. exporter's...

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