Concept
Foreign Base Company Income 0
Foreign Base Company Income (FBCI) refers to income earned by a controlled foreign corporation (CFC) that is considered easily movable and not tied to the economic activities of the country where the CFC is located. This concept is crucial for tax purposes, as it helps determine the tax liability of U.S. shareholders on income earned abroad, aiming to prevent tax avoidance through the shifting of profits to low-tax jurisdictions.