What is the FDII deduction and can my U.S. corporation benefit from it?
I own a U.S. C-corporation that sells software licenses to customers all over the world. About 60% of our revenue comes from foreign customers. Someone mentioned that there's a deduction called FDII that could reduce our tax rate on foreign sales. How does FDII work? Is it only for big companies or can a small C-corp benefit too? And how is 'foreign-derived' defined?
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