Exporter Forum – IC-DISC Tax Break for Exporters

EXPORTER FORUM

Export Series

International Trade Assistance Center at
Raj Soin College of Business
Wright State University

October 2014

The Exporter Forum

Date: October 29, 2014

Time: 9:00 – 10:30 AM

Location: 248 Rike Hall,

Wright State University

Cost: No cost to attend, but registration is required.

CLICK here to register.

After you register, you will receive a confirmation email. Directions, parking instructions and other details will be sent before the program.

Seating is limited so

REGISTER early.

The Exporter Forum workshops

are brought to you by:

IC-DISC

Tax Break for Exporters

Wednesday – October 29th

9:00 – 10:30 am

This workshop is for exporters who want to achieve significant savings of U.S. income taxes related to your export business. The export tax incentive for small and medium manufacturers is called IC-DISC – Interest-Charge Domestic International Sales Corporation. The name is confusing and leads manufacturers to believe that it is difficult and leads business leaders wondering what is it?

The tax savings are real and over 6000 businesses take advantage of this tax incentives, but thousands more companies are eligible. Are you one of those businesses failing to do so?

Simply stated, companies create a separate entity and the exporter pays commission to this corporation (the IC-DISC). The commissions are deductible to the exporter and the deemed or actual dividend payment of the commission income in the IS-DISC is taxed to the exporter’s shareholders or partners at a lower rate (sometimes as much as 28% lower) than ordinary income.

Our nation’s leaders agree that strengthening our manufacturing sector and exports are key to the U.S. economic recovery. The IC-DISC is tailor-made to encourage exactly such activity – providing a tremendous tax incentive for small and medium business owners who manufacture and export. The door is open for significant tax savings for these businesses – they just have to walk through.

This programs will provide a greater understanding of an IC-DISC, including:

Very reasonable set up cost relative to the benefit that can be achieved
Most ideally suited to closely held companies
No need to make any changes to your current accounting or bookkeeping
Products exported must have at least 50% US content
Ultimate shipment destination must be outside the US, sales to Canada and Mexico count
No need to use a foreign corporation or have a foreign agent to take advantage of this tax break
Will have no impact on your state of Ohio income tax
Reduction in Federal income taxes related to export business can range from 15% to 28%

Join us for this workshop to find out if an IC-DISC is for you and begin taking advantages of this tax incentive.

The presenter is Dave Berry of Brady Ware. Dave is a CPA and has been practicing in the Dayton area for over 40 years. He specializes in taxation matters and will walk you through the tax advantages available to US exporters through the use of an IC-DISC. Dave will explain how the IC-DISC works, what it takes to set one up, and will provide examples of how the tax savings are achieved.

The International Trade Assistance Center of Ohio (ITAC) program is funded in part through a cooperative agreement with the U.S. Small Business Administration. The ITAC program is also funded in part by the Ohio Development Services Agency. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA. Reasonable accommodations for persons with disabilities will be made if requested at least two weeks in advance. For arrangements, call the WSU ITAC at 937-775-3524.