Export Promotion Expenses Law and Legal Definition

According to 26 USCS § 971 [Title 26. Internal Revenue Code; Subtitle A. Income Taxes; Chapter 1. Normal Taxes and Surtaxes; Subchapter N. Tax Based On Income from Sources Within or Without the United States; Part III. Income from Sources without The United States; Subpart G. Export Trade Corporations],export promotion expenses means “the following expenses paid or incurred in the receipt or production of export trade income--

(1) a reasonable allowance for salaries or other compensation for personal services actually rendered for such purpose,

(2) rentals or other payments for the use of property actually used for such purpose,

(3) a reasonable allowance for the exhaustion, wear and tear, or obsolescence of property actually used for such purpose, and

(4) any other ordinary and necessary expenses of the corporation to the extent reasonably allocable to the receipt or production of export trade income.”