### Question
What does foreign trading gross receipts mean?


### Answer
**Foreign trading gross receipts** has the following meaning in *26 U.S.C. § 924*:

> the gross receipts of any FSC which are—


(1) from the sale, exchange, or other disposition of export property,


(2) from the lease or rental of export property for use by the lessee outside the United States,


(3) for services which are related and subsidiary to—


(A) any sale, exchange, or other disposition of export property by such corporation, or


(B) any lease or rental of export property described in paragraph (2) by such corporation,


  

(4) for engineering or architectural services for construction projects located (or proposed for location) outside the United States, or


(5) for the performance of managerial services for an unrelated FSC or DISC in furtherance of the production of foreign trading gross receipts described in paragraph (1), (2), or (3)

#### Citation:
  - *26 U.S.C. § 924*
  - 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 C-Taxation of Foreign Sales Corporations**

