FDDEI in 2026: How a U.S. C Corporation Selling Abroad on Marketplaces Gets to About 14%
The OBBBA renamed FDII as FDDEI: for tax years beginning in 2026, a U.S. C corporation deducts 33.34% of profit from sales to foreign persons for foreign use, about a 14% effective federal rate. Marketplace sales to individual buyers abroad, shipped to foreign addresses, generally qualify. LLCs and S corporations can't use it; claim it on Form 8993 and keep each order's foreign delivery record.
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