IC-DISC

IC-DISC export incentives provide a permanent 20 percent tax savings for qualified U.S. exporters.

What is an IC-DISC?
The Interest Charge - Domestic International Sales Corporation (IC-DISC) export incentive for U.S. exporters. Under this structure, the organization is incorporated on paper as a C-corporation that elects to be treated as an IC-DISC. Alternately, a flow-through organization might qualify for IC-DISC status.

Essentially, the IC-DISC allows an exporter to convert a portion of their foreign sales from a 35% tax bracket to a 15% tax bracket, thereby significantly lowering the exporter’s tax liability. An IC-DISC is incorporated by the same individual shareholders as the privately-held exporter, who sells the export property or pays commissions to the IC-DISC. The commissions are deductible to the exporter at a maximum rate of 35%.


 

What do Weaver’s IC-DISC services include?
Weaver offers an initial assessment of the potential tax savings from an IC-DISC structure to the development and implementation of a comprehensive strategy to maximize benefits. The process includes an analysis of available allocation methodologies, transaction-by-transaction analysis to maximize the commission on each, and verification that no unqualified transactions are included in the calculations.

Tactically, Weaver’s international consulting team’s calculations assist our clients’ legal counsel in the preparation of the supporting documentation required to take advantage of this export incentive.