By channeling its export sales through a foreign sales corporation,a U.S.company can reduce its tax rate on profits from export sales from 45 percent to 30 percent.

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By channelling its export sales through a foreign sales corporation, a U.S. company can indeed reduce its tax rate on profits from export sales from 45 percent to 30 percent. This is because foreign sales corporations are designed to provide tax incentives to American companies engaged in foreign trade, allowing them to defer or reduce taxes on their overseas earnings.

By Channeling Its Export Sales Through a Foreign Sales Corporation,a