Sec. 3-8.3. Alien corporations

A corporation organized under the laws of a country other than the United States which has income from sources outside the United States (worldwide) may carry back or carry forward net operating losses resulting from its worldwide operation. The net operating loss deduction must be computed in the following manner:

(a) compute the income or loss from worldwide operations for each year;

(b) adjust the income or loss from worldwide operations as required by sections 3-2.3, and 3-2.4 of this Part, without a deduction for any net operating loss for each year; and

(c) submit a statement showing how the worldwide net operating loss would have been claimed as a deduction for Federal purposes if the worldwide net operating loss were a Federal net operating loss and if the worldwide income in the carry back or carry forward year or years were Federal taxable income.