Meaning of nowhere income | Babel Free

Definitions

Income that is generated in the United States by a corporation but that is not taxed by the destination US state (the state in which a buyer, for example, is based), due to the state not having the jurisdiction to tax the corporation.

US, uncountable

Examples

“The bill seems to me, and I have not had a very careful reading of it, but it looks like a tax exemption for big business and it looks to me like it will assuredly create additional nowhere income for income tax purposes for corporations that are doing business in most of the States.”

“In fact, the Congressional Research Service found, in its report on the issue of a physical presence nexus standard, that in many instances corporations could in fact produce large quantities of nowhere income, meaning that it is not taxed anywhere.”

“A number of states use throwback rules to eliminate the nowhere income that arises because of P.L. 86-272.”

CEFR level