Section .2400 ‑ Domestic International Sales Corporation

Link to law: http://reports.oah.state.nc.us/ncac/title 17 - revenue/chapter 05 - corporate franchise, income, and insurance taxes/subchapter c/17 ncac 05c .2401.html
Published: 2015

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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.