What is IC-DISC?
The IC-DISC is the last surviving federal income tax incentive for U.S. companies that have products or services delivered outside of the United States. Originally enacted by Congress in 1971, the IC-DISC is the only statutory export incentive available today. Corporations, S-Corporations, individuals and partnerships are eligible to receive this tremendous federal income tax savings available under the Internal Revenue Code.
The passage of the Tax Cuts and Jobs Act of 2017 provides permanence for the IC-DISC. As such, the IC-DISC provides a permanent federal income tax reduction to the shareholders of the IC-DISC. This tax savings is realized when the exporting company deducts the commission it pays to the IC-DISC from its ordinary income. This commission would typically be deductible at 37%. IC-DISC is a non-taxable entity, and a 23.8% percent tax is paid on qualified dividends to the shareholders of the IC-DISC. Thus, a reduction in federal income taxes from 37% to 23.8% on qualified export sales is realized.
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US Department of Commerce
Hear from Owner/Founder, Paul Ferreira, CPA as he talks through the IC DISC and how exporters can increase their bottom line. Schedule a consultation to explore how our expertise can offer insights and strategies, enhancing your federal income tax savings in ways you haven’t seen before.
IC-DISC
Export Tax Management is dedicated to offering customized international tax services, emphasizing the maximization of IC-DISC benefits for companies whose products are delivered outside the United States.
Streamlined IC-DISC Setup and Integration offers U.S. exporters a tax efficiency strategy, enabling significant savings by converting export income into lower-taxed dividends. This comprehensive service simplifies setup, compliance, and management, enhancing global market competitiveness.
Our IC-DISC Compliance Services enhance tax efficiency and ensure full compliance for export businesses, focusing on qualifying export sales and IRS filings. This structured approach maximizes tax benefits and profitability, providing a clear roadmap for optimizing export incentives.
ETM’s proprietary software enhances IC-DISC tax savings with advanced strategies and sophisticated pricing methods. It offers precise tax planning and clear financial forecasts, tailored to exporters’ needs, ensuring optimal tax reduction and comprehensive understanding of benefits.
Our IRS and State Tax Examination Representation service offers comprehensive audit defense, expertly navigating tax audits to protect interests and minimize liabilities. With skilled advocacy and strategic defense, we ensure preparedness and confidence throughout, from pre-audit to appeals.
Free Download
Download our free resource to understand how you can utilize IC-Disc services to maximize your export tax savings.
Our Expertise
Specializing in IC-DISC incentives for manufacturers, software developers, agricultural producers, and engineering firms, our firm ensures optimal federal tax savings and compliance for U.S. exporters.
Contact Us
Set up a consultation to explore how our expertise can offer insights and strategies, enhancing your federal income tax savings in ways you haven’t seen before.
Call Us: 843.459.7801
Free Download
Download our free resource to understand how you can utilize IC-Disc services to maximize your export tax savings.