The income of a foreign corporation is not subject to federal corporate income tax unless the foreign corporation has income that is effectively connected with a U.S. trade or business (or permanent establishment as provided in an applicable tax treaty) or consists of certain types of U.S. source fixed or determinable annual or periodic income (“FDAP”). A foreign corporation’s income from operations outside the U.S. is not subject to U.S. corporate income tax unless special rules apply. […]
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