The Wall Street Journal: Treasury proposes new corporate tax break on foreign sales

WASHINGTON — The Treasury Department proposed the final major international-tax regulation under the 2017 tax law on Monday, outlining how businesses can claim a break related to certain foreign sales.

The break — for Foreign-Derived Intangible Income, or FDII — will let U.S. companies’ domestic operations get a 13.125% tax rate on some income, instead of the general 21% corporate tax rate. Congress created FDII to encourage companies to put intellectual property in the U.S., and the break could nudge corporations toward serving foreign markets from the U.S.

Regardless of whether companies have intangible assets, FDII can be a boon for companies that produce goods and services in the U.S.

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