### Question
How does NORMAL TAXES AND SURTAXES define financial services income?


### Answer
Under *26 U.S.C. § 904*, **financial services income** is defined as:

> any income which is received or accrued by any person predominantly engaged in the active conduct of a banking, insurance, financing, or similar business, and which is—


(I) described in clause (ii),


(II) passive income (determined without regard to subclauses (I) and (III) of subparagraph (A)(iii)), or


(III) export financing interest which (but for subparagraph (B)(ii)) would be high withholding tax interest

#### Citation:
  - *26 U.S.C. § 904*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter N-Tax Based on Income From Sources Within or Without the United States > PART III-INCOME FROM SOURCES WITHOUT THE UNITED STATES > Subpart A-Foreign Tax Credit**

