C.F.R. » Title 19 » CHAPTER III—INTERNATIONAL TRADE ADMINISTRATION, DEPARTMENT OF COMMERCE › PART 351—ANTIDUMPING AND COUNTERVAILING DUTIES › Subpart E—Identification and Measurement of Countervailable Subsidies

19 C.F.R. § 351.509

Direct taxes

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(a) Benefit—(1) Exemption or remission of taxes. In the case of a program that provides for a full or partial exemption or remission of a direct tax (for example, an income tax), or a reduction in the base used to calculate a direct tax, a benefit exists to the extent that the tax paid by a firm as a result of the program is less than the tax the firm would have paid in the absence of the program, including as a result of being located in an area designated by the government as being outside the customs territory of the country.

(2) Deferral of taxes. In the case of a program that provides for a deferral of direct taxes, a benefit exists to the extent that appropriate interest charges are not collected. Normally, a deferral of direct taxes will be treated as a government-provided loan in the amount of the tax deferred, according to the methodology described in § 351.505. The Secretary will use a short-term interest rate as the benchmark for tax deferrals of one year or less. The Secretary will use a long-term interest rate as the benchmark for tax deferrals of more than one year.

(b) Time of receipt of benefit—(1) Exemption or remission of taxes. In the case of a full or partial exemption or remission of a direct tax, the Secretary normally will consider the benefit as having been received on the date on which the recipient firm would otherwise have had to pay the taxes associated with the exemption or remission. For all exemptions or remissions related to income taxes, this date will be the date on which the firm filed its tax return.

(2) Deferral of taxes. In the case of a tax deferral of one year or less, the Secretary normally will consider the benefit as having been received on the date on which the deferred tax becomes due. In the case of a multi-year deferral, the Secretary normally will consider the benefit as having been received on the anniversary date(s) of the deferral.

(c) Allocation of benefit to a particular time period. The Secretary normally will allocate (expense) the benefit of a full or partial exemption, remission, or deferral of a direct tax to the year in which the benefit is considered to have been received under paragraph (b) of this section.

(d) Benefit not tied to particular markets or products. If a program provides for a full or partial exemption, reduction, credit, or remission of an income tax, the Secretary normally will consider any benefit to be not tied with respect to a particular market under § 351.525(b)(4) or to a particular product under § 351.525(b)(5).

[63 FR 65407, Nov. 25, 1998, as amended at 89 FR 20841, Mar. 25, 2024; 89 FR 101766, Dec. 16, 2024]
Notes of Decisions
Cited in 5 cases (4 in the last 5 years), 2018–2024 · leading case: Gov't of Quebec v. United States, 105 F.4th 1359 (Fed. Cir. 2024).
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Gov't of Quebec v. United States, 105 F.4th 1359 (Fed. Cir. 2024). · cites it 5× “” 6 Regarding benefits provided through direct taxes, 19 C.F.R. § 351.509 (a)(1) (“Exemption or remission of taxes”) provides that “a benefit exists to the extent that the tax paid by a firm as a result of the program is less than the tax the firm would have paid in the absence…”
Gov't of Sri Lanka v. United States, 2018 CIT 43 (Ct. Intl. Trade 2018). · cites it 3× “" 19 C.F.R. § 351.509 (a). The Super Gains Tax was imposed on Camso because its pre-tax profits for the year beginning April 1, 2013, exceeded two billion Sri Lankan rupees.”
Comm. Overseeing Action for Lumber Int'l Trade Investigations or Negot. v. United States, 2024 CIT 50 (Ct. Intl. Trade 2024). · cites it 2× “Commerce’s benefit regulation, 19 C.F.R. § 351.509 (a), directs the agency to determine whether “a benefit Consol.”
Hyundai Steel Co. v. United States, 2023 CIT 144 (Ct. Intl. Trade 2023). “, 19 C.F.R. § 351.509 (a) (in the case of tax credits, stating that “a benefit exists to the extent that the tax paid by a firm as a result of the program is less than the tax the firm would have paid in the absence of the program”) (emphases added).”
Gov't of Quebec v. United States (Fed. Cir. 2024). · cites it 5× “” 6 Regarding benefits provided through direct taxes, 19 C.F.R. § 351.509 (a)(1) (“Exemption or remission of taxes”) provides that “a benefit exists to the extent that the tax paid by a firm as a result of the program is less than the tax the firm would have paid in the absence…”
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