2016 Base Period T-Bill Rate. The “base period T-bill rate” for the period ending September 30, 2016, is published as required by section 995(f) of the Internal Revenue Code

Section 995.—Taxation of DISC Income to Shareholders

2016 Base Period T-Bill Rate. The “base period T-bill rate” for the period ending September 30,

2016, is published as required by section 995(f) of the Internal Revenue Code.

Rev. Rul. 2017-01

Section 995(f)(1) of the Internal Revenue Code provides that a shareholder of a domestic

international sales corporation (“DISC”) shall pay interest each taxable year in an amount equal

to the product of the “shareholder’s DISC-related deferred tax liability” for the year (as defined

in section 995(f)(2)) and the “base period T-bill rate.” Under section 995(f)(4), the base period

T-bill rate is the annual rate of interest determined by the Secretary to be equivalent to the

average of the 1-year constant maturity Treasury yields, as published by the Board of Governors

of the Federal Reserve System, for the 1-year period ending on September 30 of the calendar

year ending with (or the most recent calendar year ending before) the close of the taxable year of

the shareholder.

The base period T-bill rate for the period ending September 30, 2016, is 0.54 percent.

Pursuant to section 6622 of the Internal Revenue Code, interest must be compounded

daily. The table below provides factors for compounding the 2016 base period T-bill rate daily

for any number of days in the shareholder’s taxable year (including for a 52-53 week accounting

period). To compute the amount of the interest charge for the shareholder’s taxable year,

multiply the amount of the shareholder’s DISC-related deferred tax liability for that year by the

base period T-bill rate factor corresponding to the number of days in the shareholder’s taxable

year for which the interest charge is being computed. Generally, one would use the factor for

365 days

unting

period). To compute the amount of the interest charge for the shareholder’s taxable year,

multiply the amount of the shareholder’s DISC-related deferred tax liability for that year by the

base period T-bill rate factor corresponding to the number of days in the shareholder’s taxable

year for which the interest charge is being computed. Generally, one would use the factor for

365 days. One would use a different factor only if the shareholder’s taxable year for which the

interest charge is being determined is a short taxable year, if the shareholder uses a 52-53 week

taxable year, or if the shareholder’s taxable year is a leap year.

For the base period T-bill rates for periods ending in prior years, see Rev. Rul. 2015-26,

2015-49 IRB 696; Rev. Rul. 2014-33, 2014-52 IRB 957; Rev. Rul. 2013-24, 2013-49 IRB 594;

Rev. Rul. 2012-22, 2012-48 IRB 565; and Rev. Rul. 2011-30, 2011-49 IRB 826.

DRAFTING INFORMATION

The principal author of this revenue ruling is Matthew A. Nieters of the Office of

Associate Chief Counsel (International). For further information regarding the revenue ruling,

contact Mr. Nieters at (202) 317-6939 (not a toll-free number).

ANNUAL RATE, COMPOUNDED DAILY

0.54 PERCENT

DAYS FACTOR__

1 .000014754

2 .000029508

3 .000044263

4 .000059018

5 .000073773

6 .000088528

7 .000103283

8 .000118039

9 .000132795

10 .000147551

11 .000162307

12 .000177064

13 .000191820

14 .000206577

15 .000221334

16 .000236092

17 .000250849

18 .000265607

19 .000280365

20 .000295123

.000147551

11 .000162307

12 .000177064

13 .000191820

14 .000206577

15 .000221334

16 .000236092

17 .000250849

18 .000265607

19 .000280365

20 .000295123

21 .000309882

22 .000324640

23 .000339399

24 .000354158

25 .000368918

26 .000383677

27 .000398437

28 .000413197

29 .000427957

30 .000442718

31 .000457478

32 .000472239

33 .000487000

34 .000501761

35 .000516523

36 .000531285

37 .000546047

38 .000560809

39 .000575571

40 .000590334

41 .000605097

42 .000619860

43 .000634623

44 .000649386

45 .000664150

46 .000678914

47 .000693678

ANNUAL RATE, COMPOUNDED DAILY

0.54 PERCENT

DAYS FACTOR__

48 .000708442

49 .000723207

50 .000737972

51 .000752737

52 .000767502

53 .000782267

54 .000797033

55 .000811799

56 .000826565

57 .000841331

58 .000856098

59 .000870864

60 .000885631

61 .000900398

6

.000752737

52 .000767502

53 .000782267

54 .000797033

55 .000811799

56 .000826565

57 .000841331

58 .000856098

59 .000870864

60 .000885631

61 .000900398

62 .000915166

63 .000929933

64 .000944701

65 .000959469

66 .000974238

67 .000989006

68 .001003775

69 .001018544

70 .001033313

71 .001048082

72 .001062852

73 .001077621

74 .001092391

75 .001107162

76 .001121932

77 .001136703

78 .001151474

79 .001166245

80 .001181016

81 .001195788

82 .001210559

83 .001225331

84 .001240103

85 .001254876

86 .001269648

87 .001284421

88 .001299194

89 .001313968

90 .001328741

91 .001343515

92 .001358289

93 .001373063

94 .001387837

ANNUAL RATE, COMPOUNDED DAILY

0.54 PERCENT

DAYS FACTOR__

95 .001402612

96 .001417387

97 .001432162

98 .001446937

99 .001461712

100 .001476488

101 .001491264

102 .001506040

103

0.54 PERCENT

DAYS FACTOR__

95 .001402612

96 .001417387

97 .001432162

98 .001446937

99 .001461712

100 .001476488

101 .001491264

102 .001506040

103 .001520816

104 .001535593

105 .001550369

106 .001565146

107 .001579924

108 .001594701

109 .001609479

110 .001624257

111 .001639035

112 .001653813

113 .001668591

114 .001683370

115 .001698149

116 .001712928

117 .001727708

118 .001742487

119 .001757267

120 .001772047

121 .001786827

122 .001801608

123 .001816388

124 .001831169

125 .001845950

126 .001860732

127 .001875513

128 .001890295

129 .001905077

130 .001919859

131 .001934642

132 .001949424

133 .001964207

134 .001978990

135 .001993774

136 .002008557

137 .002023341

138 .002038125

139 .002052909

140 .002067693

ANNUAL RATE, COMPOUNDED DAILY

0.54 PERCENT

DAYS FACTOR__

141 .002082478

142 .002097263

143 .002112048

144 .0021

137 .002023341

138 .002038125

139 .002052909

140 .002067693

ANNUAL RATE, COMPOUNDED DAILY

0.54 PERCENT

DAYS FACTOR__

141 .002082478

142 .002097263

143 .002112048

144 .002126833

145 .002141618

146 .002156404

147 .002171190

148 .002185976

149 .002200763

150 .002215549

151 .002230336

152 .002245123

153 .002259910

154 .002274698

155 .002289485

156 .002304273

157 .002319061

158 .002333850

159 .002348638

160 .002363427

161 .002378216

162 .002393005

163 .002407794

164 .002422584

165 .002437374

166 .002452164

167 .002466954

168 .002481745

169 .002496535

170 .002511326

171 .002526117

172 .002540909

173 .002555700

174 .002570492

175 .002585284

176 .002600077

177 .002614869

178 .002629662

179 .002644455

180 .002659248

181 .002674041

182 .002688835

183 .002703628

184 .002718422

185 .002733217

186 .002748011

187 .002762806

ANNUAL RATE, COMPOUNDED DAILY

178 .002629662

179 .002644455

180 .002659248

181 .002674041

182 .002688835

183 .002703628

184 .002718422

185 .002733217

186 .002748011

187 .002762806

ANNUAL RATE, COMPOUNDED DAILY

0.54 PERCENT

DAYS FACTOR__

188 .002777600

189 .002792396

190 .002807191

191 .002821986

192 .002836782

193 .002851578

194 .002866374

195 .002881171

196 .002895967

197 .002910764

198 .002925561

199 .002940358

200 .002955156

201 .002969953

202 .002984751

203 .002999550

204 .003014348

205 .003029146

206 .003043945

207 .003058744

208 .003073543

209 .003088343

210 .003103143

211 .003117942

212 .003132743

213 .003147543

214 .003162343

215 .003177144

216 .003191945

217 .003206746

218 .003221548

219 .003236349

220 .003251151

221 .003265953

222 .003280756

223 .003295558

224 .003310361

225 .003325164

226 .003339967

227 .003354770

228 .003369574

229 .003384378

9 .003236349

220 .003251151

221 .003265953

222 .003280756

223 .003295558

224 .003310361

225 .003325164

226 .003339967

227 .003354770

228 .003369574

229 .003384378

230 .003399182

231 .003413986

232 .003428790

233 .003443595

234 .003458400

ANNUAL RATE, COMPOUNDED DAILY

0.54 PERCENT

DAYS FACTOR__

235 .003473205

236 .003488011

237 .003502816

238 .003517622

239 .003532428

240 .003547234

241 .003562041

242 .003576847

243 .003591654

244 .003606461

245 .003621268

246 .003636076

247 .003650884

248 .003665692

249 .003680500

250 .003695308

251 .003710117

252 .003724926

253 .003739735

254 .003754544

255 .003769354

256 .003784163

257 .003798973

258 .003813783

259 .003828594

260 .003843404

261 .003858215

262 .003873026

263 .003887837

264 .003902649

265 .003917460

266 .003932272

267 .003947085

268 .003961897

269 .003976709

270 .003991522

.003843404

261 .003858215

262 .003873026

263 .003887837

264 .003902649

265 .003917460

266 .003932272

267 .003947085

268 .003961897

269 .003976709

270 .003991522

271 .004006335

272 .004021148

273 .004035962

274 .004050775

275 .004065589

276 .004080403

277 .004095218

278 .004110032

279 .004124847

280 .004139662

ANNUAL RATE, COMPOUNDED DAILY

0.54 PERCENT

DAYS FACTOR__

281 .004154477

282 .004169292

283 .004184108

284 .004198924

285 .004213740

286 .004228556

287 .004243373

288 .004258189

289 .004273006

290 .004287823

291 .004302641

292 .004317458

293 .004332276

294 .004347094

295 .004361912

296 .004376731

297 .004391550

298 .004406368

299 .004421188

300 .004436007

301 .004450826

302 .004465646

303 .004480466

304 .004495286

305 .004510107

306 .004524927

307 .004539748

308 .004554569

309 .004569391

310 .004584212

311 .004599034

312

4450826

302 .004465646

303 .004480466

304 .004495286

305 .004510107

306 .004524927

307 .004539748

308 .004554569

309 .004569391

310 .004584212

311 .004599034

312 .004613856

313 .004628678

314 .004643500

315 .004658323

316 .004673146

317 .004687969

318 .004702792

319 .004717616

320 .004732439

321 .004747263

322 .004762087

323 .004776912

324 .004791736

325 .004806561

326 .004821386

327 .004836211

ANNUAL RATE, COMPOUNDED DAILY

0.54 PERCENT

DAYS FACTOR__

328 .004851037

329 .004865863

330 .004880688

331 .004895515

332 .004910341

333 .004925167

334 .004939994

335 .004954821

336 .004969648

337 .004984476

338 .004999303

339 .005014131

340 .005028959

341 .005043788

342 .005058616

343 .005073445

344 .005088274

345 .005103103

346 .005117932

347 .005132762

348 .005147592

349 .005162422

350 .005177252

351 .005192083

352 .005206913

353

343 .005073445

344 .005088274

345 .005103103

346 .005117932

347 .005132762

348 .005147592

349 .005162422

350 .005177252

351 .005192083

352 .005206913

353 .005221744

354 .005236575

355 .005251407

356 .005266238

357 .005281070

358 .005295902

359 .005310734

360 .005325567

361 .005340400

362 .005355232

363 .005370066

364 .005384899

365 .005399732

366 .005414566

367 .005429400

368 .005444234

369 .005459069

370 .005473903

371 .005488738