North Dakota Administrative Code
Title 81 - Tax Commissioner
Article 81-03 - Income Taxes and Privilege Taxes Based on Income
Chapter 81-03-05.1 - Income Tax on Corporations
Section 81-03-05.1-04 - DISC distributions

Actual distributions received from a DISC (domestic international sales corporation), or a former domestic international sales corporation, after December 31, 1984, on accumulated earnings derived before January 1, 1985, must be treated as taxable income and included in apportionable income for state tax purposes. Therefore, the taxable income of a corporation as computed pursuant to the provisions of the Internal Revenue Code of 1954, as amended, must be adjusted as necessary to include the actual domestic international sales corporation distributions received after December 31, 1984, in apportionable income for state tax purposes.

Actual distributions received after December 31, 1984, from accumulated earnings before January 1, 1985, from a domestic international sales corporation, or a former domestic international sales corporation, previously included in a combined report filed with this state, must be treated as previously taxed income and no adjustment to income for state tax purposes is necessary.

General Authority: NDCC 57-38-56

Law Implemented: NDCC 57-38-01, 57-38-01.3