1. Home
  2. Knowledge Base
  3. Dictionary of International Trade
  4. domestic international sales corporation (DISC)

domestic international sales corporation (DISC)

(U.S.) A special U.S. corporation authorized by the U.S. Revenue Act of 1971, as amended by the Tax Reform Act of 1984, to borrow from the U.S. Treasury at the average one-year Treasury bill interest rate to the extent of income tax liable on 94 percent of its annual corporate income. To qualify, the corporation must derive 95 percent of its income from U.S. exports; also, at least 95 percent of its gross assets, such as working capital, inventories, building and equipment, must be export-related. Such a corporation can buy and sell independently, or can operate as a subsidiary of another corporation. It can maintain sales and service facilities outside the United States to promote and market its goods. DISCs can now provide a tax deferral on up to $10 million of exports so long as the funds remain in export-related investments.

Was this article helpful?

Related Articles

Need Support?

Can't find the answer you're looking for?
Contact Support