### Question
How is the "active foreign business income" defined?


### Answer
The term **active foreign business income** is defined in *26 U.S.C. § 871* as follows -

> gross income which—



(I) is derived from sources outside the United States (as determined under this subchapter), and



(II) is attributable to the active conduct of a trade or business in a foreign country or possession of the United States

#### Citation:
  - *26 U.S.C. § 871*
  - 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 II-NONRESIDENT ALIENS AND FOREIGN CORPORATIONS > Subpart A-Nonresident Alien Individuals**

