All glossary terms
Glossary term
Foreign-Derived Intangible Income (FDII)
A favorable deduction regime for U.S. corporate income from foreign sales of property and services.
Related terms
1
Jurisdictions
us
Definition
Section 250 provides a partial deduction for FDII, broadly defined as a U.S. corporation's deemed intangible income from foreign sales and services. Scheduled to be less generous after 2025.
Examples
- A U.S. tech company selling software licenses to foreign customers may benefit from the FDII deduction.
Related terms
Translations
ESFDII
ZH外国衍生无形所得
DEFDII
FRFDII
JAFDII
Citations
26 U.S.C. · 250
Related citations
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Cited by
Primary sources
- IRS: FDIIVerified 2026-05-20
Important disclaimer
This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.