IC-DISC
Export Tax Incentives Consulting
Reduce your tax rate on export profits from 35% to 15%Minimize the time and resources to achieve the results
Centerprise Group is a leading authority on structuring and managing the IC-DISC export tax incentive.
Your company may qualify for the IC-DISC tax benefit if you:
- Sell / distribute products that are partially manufactured in the US which ultimately are shipped outside the US; and/or
- Provide services outside the US
IC-DISC structures are complex and require a specialized consulting firm during the formation process and for ongoing operations to ensure approval by the IRS. Our national team of tax specialists is dedicated full time to this area of the tax code and has the expertise to help ensure your company receives the maximum benefit available.
Centerprise Group can provide:
- Specialized transfer pricing experience needed to maximize the benefit of the structure
-
Understanding of the many complex IC-DISC requirements including the qualified export receipts test, qualified export assets test, the manufacturing requirements, the destination requirements, the minimum U.S. content requirement, and applicable transfer pricing principles
-
Proprietary software that is designed to perform transactional analysis which provides greater overall tax benefits
-
Experience with complex grouping rules to group sales to reflect greater export profits
-
Experience with complex expense allocation and marginal costing rules which can lead to increased benefit
-
Experience with the entire IC-DISC structure, from the important structural decisions before actually forming IC-DISC to handling the required on-going monitoring of its qualification, documentation, calculations, and IRS reporting
IC-DISC
Tax Benefit
Congress enacted the Domestic International Sales Corporation (“DISC”)
tax regime to stimulate U.S. exports. Via commissions, US exporters are
allowed to shift export profits to a tax exempt entity called an IC-DISC,
which is the only remaining tax incentive for exporters. Profits in the
IC-DISC are only taxed when distributed to the shareholders at the capital
gains rate of 15%.
The Centerprise Group Approach