If your business exports products or services, you may be missing out on substantial tax benefits that can reduce your federal income tax liability. Learn how you can unlock significant tax savings with the IC-DISC tax incentive.
If your company exports, even indirectly, and you’re not using an IC-DISC, you may be overpaying 10% to 20% in unnecessary taxes each year.
An Interest Charge – Domestic International Sales Corporation (IC-DISC) is a powerful export tax incentive that allows US companies to reduce federal income taxes on qualifying export profit by setting up a specialized entity. IC-DISC is a tax-exempt corporate entity that allows US exporters to convert a portion of ordinary income into qualified dividends, which are taxed at a lower rate. Since profits that flow through an IC-DISC can be taxed as qualified dividends rather than ordinary income, it creates a permanent tax savings for eligible US exporters.
An Interest Charge – Domestic International Sales Corporation
How It Works
→ $280K saved in first year
→ $912K in multi-year cumulative tax savings
→ $370K in annual tax savings
At Specialty Tax Advisors, we specialize in helping businesses set up and leverage the IC-DISC tax incentive for maximum savings. Here’s why you should choose us to handle your IC-DISC strategy:
With decades of experience in export tax incentives, we understand how to navigate the complexities of the IC-DISC and ensure your business maximizes its tax savings.
We have a proven track record of helping businesses achieve significant tax savings through the IC-DISC, with numerous success stories of clients realizing substantial savings.
We work hand-in-hand with your CPA, legal advisors, and other professionals to ensure the IC-DISC is integrated seamlessly into your overall tax plan.
We don't believe in one-size-fits-all. Our team works closely with your business to develop a strategy that fits your unique export operations and financial goals.
From setting up the IC-DISC entity to managing ongoing compliance, we provide comprehensive services that cover every aspect of your tax strategy.
Your success is our priority. We guide you through the process with clear communication, detailed reporting, and strategies that align with your business goals.
An IC-DISC (Interest Charge – Domestic International Sales Corporation) is a tax-exempt entity that allows U.S. exporters to convert a portion of their income into qualified dividends, resulting in lower tax rates.
U.S. manufacturers, exporters, and firms involved in foreign sales or foreign projects may qualify for the IC-DISC tax incentive, especially those with $1M+ in annual export revenue.
You can save between 10% and 20% on qualifying export profits by converting ordinary income into qualified dividends taxed at a lower rate (up to 20%).
Setting up an IC-DISC is straightforward. We handle the complexities, ensuring you receive the full benefit without hassle. It’s a simple and effective way to reduce taxes.
Yes, the IC-DISC can apply to both current and retroactive export profits, allowing you to claim tax savings for previous years’ eligible export activities.
It’s not. We help with the heavy lifting while you get the benefit.