### Question
What is the definition of applicable foreign corporation?


### Answer
The definition of **applicable foreign corporation** is as follows in *26 U.S.C. § 943*:

> any foreign corporation if—


(A) such corporation manufactures, produces, grows, or extracts property in the ordinary course of such corporation's trade or business, or


(B) substantially all of the gross receipts of such corporation are foreign trading gross receipts

#### Citation:
  - *26 U.S.C. § 943*
  - 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 E-Qualifying Foreign Trade Income**

