SECTION .2400 ‑ DOMESTIC INTERNATIONAL SALES CORPORATION
17 NCAC 05C .2401 DOING BUSINESS ACTIVITIES OF DISC
A domestic international sales corporation (DISC) is a
domestic corporation whose income is derived from export sales. The DISC
transacts business by exporting the products of its parent or related companies
with the income earned by the DISC deferred for federal income tax purposes.
The Tax Reform Act of 1984 left only the interest charge DISC remaining whose
tax benefits are limited with an interest charge for tax deferred amounts
imposed on DISC shareholders. Since G.S. 105-130.3 imposes an income tax on
every corporation unless otherwise exempted, a DISC doing business in this
state shall be subject to income tax in this state and subject to the rules in
this Subchapter except as provided in this Section.
History Note: Authority G.S. 105‑130.3; 105‑262;
Eff. December 5, 1976;
Amended Eff. January 1, 1994.