Less Developed Country Corporation

Summary of Less Developed Country Corporation

As provided in the 1980s in U.S. tax laws, a firm that derived at least 80 percent of its income in less developed countries (LDCs) and had at least 80 percent of its assets in LDCs. Dividend and interest income from such corporations was excluded from foreign-base company income to the extent it was reinvested in an LDC. Sheltering of income on trading in the stock of LDC corporations ended with the Tax Reform Act of 1976.

(Main Author: William J. Miller)