Domestic International Sales Corporation

Domestic International Sales Corporation means:
a domestic corporation whose income is derived almost exclusively from U.S. export-related activities and most of whose profits receive a U.S. taxation deferral. A DISC is not taxable, but any income subject to taxation is included in the income of its shareholders. The deferred income is taxed when it is distributed to the DISC shareholders, when the shareholders dispose of their stock, or when the DISC loses its tax-free status. Former IRC (check if this IRC provision is current here) §§991-997.