To encourage a better balance of trade and help keep U.S. products competitive in the world market, the government offers certain tax incentives for exporters. Specifically, these include the Extraterritorial Income Exclusion (EIE) and Interest-Charge Domestic International Sales Corporations (IC-DISC).
While the EIE has been phased out for current and future tax years, it is still accessible for prior years.
The IC-DISC is more attractive than ever due to the lowered rate of tax dividends created by the Job and Growth Tax Relief Reconciliation Act of 2003. An IC-DISC is a separate domestic corporation which must formally elect to be treated as an IC-DISC and is required to maintain a separate bank account and set of accounting books. The IC-DISC must also file an annual U.S. income tax return, even though it pays no U.S. income taxes. alliantgroup’s export incentive specialists help clients remain competitive globally by taking advantage of government export incentives, such as the IC-DISC (and EIE if accessible).
For more information on export incentives, please complete the form below to contact alliantgroup. For immediate assistance, contact David Ji.