United States Tax Incentives for Foreign-Based Operations

A Western Hemisphere trade corporation (WHTC) trades exclusively with Eastern Hemisphere nations.

The United States tax incentives for WHTCs result in a 48 percent corporate tax rate.

At least 90 percent of a corporation's sales must come from outside the United States to qualify as a WHTC.

Under the system of a domestic international sales corporation (DISC), shareholders pay taxes on 100 percent of the earnings.

The purpose of the tax incentive for WHTCs was successful in significantly attracting foreign dire investment in less developed nations.

A DISC must receive at least 90 percent of its gross receipts from exports to qualify.

Transfer pricing has not been a concern for international organizations like the United Nations.

Tax havens are criticized by the United Nations due to their role in enabling tax avoidance.

Tax holidays are supported by the United Nations as they promote healthy competition among countries.

The European Economic Community (EEC) has import duties among its member nations.