Extraterritorial income exclusion

rdf:langString Extraterritorial income exclusion

rdf:langString Extraterritorial income exclusion, under the U.S. Internal Revenue Code, was the amount excluded from a taxpayer's gross income for certain transactions that generate foreign trading gross receipts. In general, foreign trading gross receipts include gross receipts from the sale, exchange, lease, rental, or other disposition of qualifying foreign trade property. Foreign trading gross receipts also include receipts from certain services provided in connection with such property, as well as engineering and architectural services for construction projects outside the United States. Extraterritorial income is the gross income of the taxpayer attributable to foreign trading gross receipts. The taxpayer reported all of its extraterritorial income on its tax return. The taxpayer used Form 8873 to calculate its exclusion from income that is qualifying foreign trade income. It was abolished when in late 2004, US President George W Bush signed the American Jobs Creation Act of 2004 which phased out the extraterritorial income (ETI) exclusion in favor of broader tax relief. ETI deduction benefits are not available for transactions entered into after 2006.