Products or services to a foreign country the foreign

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products or services to a foreign country the foreign-derived intangible income (FDII) deduction. This provision is intended to incentivize U.S. firms to keep their intangible assets in the United States, thus further discouraging firms from shifting intangible assets to foreign countries with low tax rates. This provision is similar t o “IP boxes” adopted by some countries which subject income arising from patents developed within that country to reduced tax rates. Electronic copy available at: