Make More Money…Beat The Competition…Save Tax Money Legally
An IC-DISC is the only current U.S. government sponsored tax benefit program for exporters. It is available to all U.S. Taxpayers no matter what size or what type of corporate structure. The only stipulations are that the entity has Qualified Exports and be profitable.
In its simplest terms an IC-DISC is a “paper” entity used as a tax-savings vehicle for exporters. It does not require office space, employees, payroll or tangible assets; rather it is a shell company that serves as a conduit for export tax savings. All business activities take place in your existing operating company and none of your customers will know you have an IC-DISC.
The benefits obtained from an IC-DISC are on a go-forward basis only; no retroactive benefits exist, so delaying the start of your IC-DISC only reduces your benefits now. The tax benefits are based on the differential between the qualified dividend rates of 15% – 23.8% and the ordinary income tax rates of up to 39.6% on that money. The amount of money that can be moved to an IC-DISC, which will ultimately determine your tax savings, is based on the export sales revenue and pretax export sales profit that take place within your operating company.
This tax rate differential was set to expire on December 31, 2012. Although it was extended, because qualified dividend tax rates were set at 15% to 20% – plus 3.8% qualified dividend tax for Obamacare – the tax rate differential has been modified. Either way the modification retains significant tax savings for exporters, and indications are that it will continue to be in place for the foreseeable future.
Let Export IC-DISC take the hassle, complications and mystery out of the IC-DISC.
Why Don’t You Have An IC-DISC?
- You thought only large exporters could afford an IC-DISC
- The U.S. Government and IRS do not go around promoting the IC-DISC
- The Tax Code is 13,458 pages long so your CPA cannot be expected to know all of it
- You or your CPA heard of it but it was too complex to implement
- You or your CPA wanted to see if the benefits would be extended (and missed out on thousands of dollars in savings while waiting)
- You were not exporting in the past