NDAC 81-03-05.1-04
DISC distributions
Cite as N.D. Admin. Code ยง 81-03-05.1-04
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.