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On Foreign Soil

Congress is proceeding with a plan to allow U.S. exporters to establish foreign sales corporation in other countries.

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This story appears in the November 2000 issue of Entrepreneur. Subscribe »

Congress is moving ahead with legislation to amend a tax law that allows U.S. exporters to establish foreign sales corporations (FSCs) abroad. With FSCs, companies can lower their income tax rate on the profits made from selling products in other countries. (For more details, see February 2000's "Tax Talk.")

The legislative push is in response to a recent ruling from the World Trade Organization (WTO) indicating that the 1982 law allowing FSCs provides unfair subsidies to U.S. companies. The European Union brought the complaint to the WTO.

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