Sales to foreign customers through a branch office of a U.S. corporation are considered foreign-derived intangible income eligible for a preferential tax rate.

Question

Quizplus · Accepted Answer

Sales to foreign customers through a branch office of a U.S. corporation do not qualify as foreign-derived intangible income (FDII) because FDII benefits are designed to apply to income derived from serving foreign markets directly from the U.S., rather than through a foreign branch or subsidiary.

Sales to Foreign Customers Through a Branch Office of a U.S