### Question
Can you define what applicable percentage means?


### Answer
**Applicable percentage** is defined as the following in *26 U.S.C. § 936*:

> the percentage determined in accordance with the following table:




 | **In the case of taxable years    beginning in:** | **The percentage is:** |
| 1994  | 60   |
| 1995  | 55   |
| 1996  | 50   |
| 1997  | 45   |
| 1998 and thereafter  | 40

#### Citation:
  - *26 U.S.C. § 936*
  - 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 D-Possessions of the United States**

