Domestic International Sales Corporation [DISC] Law and Legal Definition
The Domestic International Sales Corporation (DISC) is a federal corporation receiving reduced income tax rates. It is a subsidiary whose income is primarily attributable to exports. Generally, shareholders of the DISC receive reduced income tax rates on qualifying income from exports of U.S. made goods.
The function of DISC is to enter into contracts with a producer or reseller of the U.S. made goods. In Microsoft Corp. v. Comm'r, 311 F.3d 1178, 1180 (9th Cir. 2002), it was held that tax incentives are provided to the U.S. firms, so long as they are retained in a new type of U.S. corporation known as a Domestic International Sales Corporation or a DISC. A firm in the U.S. is recognized as a DISC only if the corporation's gross receipts and assets are export related.
Legal Definition list
- Domestic International Sales Corporation [DISC]
- Domestic Industrial Base
- Domestic Fleet
- Domestic Farmer’s Mutual Fire Insurance Companies
- Domestic Exports
- Domestic Judgment
- Domestic Mail Classification Schedule
- Domestic Material
- Domestic Nuclear Detection Office
- Domestic Owner [Internal Revenue]
- Domestic Partners
Related Legal Terms
- Absolute Discharge
- Abuse of Discretion
- Abusive Discharge
- Academy for International Conflict Management and Peacebuilding [USIP]
- Accelerated Disclosure
- Accent Discrimination
- Accrued Market Discount
- Actuarial Documents [Federal Crop Insurance Corporation]
- Actuarially Appropriate [Federal Crop Insurance Corporation]
- Additional Disclosable Party
