Page 390 - Large Business IRS Training Guides

FDII
Terms and Definitions 2

• Deemed Intangible Income (DII)
is profit in excess of

DTIR, i f
any, and is considered earned from intangible

assets.

• Foreign-Derived Deduction Eligible Income (FDDEI)

is the portion of DEI from certain foreign sales and

services.

• Foreign-Derived Ratio (FDR) i s
the quotient of FDDEI

which is ultimately multiplied by DII to
over DEI,

determine FDII.
The FDR cannot exceed one (1) as
calculation.
part of this

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