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EXPORT TAX BENEFITS

BASED ON MANY YEARS OF EXPERIENCE IN PROVIDING EFFECTIVE, PROFESSIONAL EXPORT TAX AND FINANCE MANAGEMENT SERVICES, EXPORT ASSIST WILL HELP DESIGN, IMPLEMENT AND MANAGE THE EXPORT TAX BENEFIT PROGRAM THAT BEST MEETS YOUR OBJECTIVES.

Whether you are public or private, large or small, you could benefit from the:

 
 

And, Export Assist continues to perform Foreign Sales Corporation (FSC) Management and Termination Services for regular and long-term lease FSCs that have remained active for tax and compliance purposes.

If you have any questions, please contact Wendy Weir, Chief Operating Officer – Chief Operating Officer, directly at 800-894-8366 or wweir@exportassist.com.

IC-DISC and VIEXCO

The following chart highlights the structure and benefits that can be received with an IC-DISC and a Virgin Islands Export Corporation (VIEXCO).

IC-DISC
VIEXCO

Structure:

  • Domestic C corporation
  • Benefits begin upon incorporation
  • IC-DISC can own a Foreign International Sales Corporation (FISC)
  • 100% safe harbor commission or buy/sell
  • Not a taxable entity

Structure:

  • Controlled foreign corporation (CFC)
  • Benefits begin upon incorporation
  • Foreign presence
  • Services or buy/sell
  • Entity with virtually no tax

Benefits:

  • Dividends - 15% tax rate for individuals
  • Deferral with $10 million annual revenue limit
  • Low-cost working capital for export growth and R&D (R&D tax credits applicable)
  • Increased cash flow for exporter
  • Lower effective tax rate
  • Reduced taxable base at exporter level
  • Elimination of double taxation in C corporations
  • Protection of IRC safe harbor commission provisions

Benefits:

  • Dividends - 15% tax rate for individuals
  • Unlimited deferral
  • Low-cost working capital for export growth
  • Increased cash flow for exporter
  • Lower effective tax rate
  • Use of foreign tax credit carryforwards
  • Use of trapped Section 956 funds in the U.S. without Subpart F exposure

Who benefits the most:

  • Small to medium, private exporters

Who benefits the most:

  • Medium to large, private and public exporters

Recovery of ETI Benefits

Although ETI was repealed in 2006, exporters might be able to recover Extraterritorial Income Exclusion benefits for open tax years 2005 and 2006 as long as they did not have an active IC-DISC in those years. This could be of interest to the majority of exporters who never applied for ETI benefits and to those with annual foreign trading gross receipts in excess of $5,000,000 who only applied for the minimum benefit amount.

FSC Management and Termination Services

Export Assist continues its foreign sales corporation management services to keep your FSC active and in good standing, thereby allowing you and your tax advisor to facilitate future dividend declarations, tax refunds, tax amendments, redeterminations and outstanding audits or to maintain FSC-related activities for long-term lease FSCs. Once these purposes have been fulfilled, Export Assist will terminate or dissolve your FSC.

For more information, please Wendy Weir, Chief Operating Officer, at 800-894-8366 or wweir@exportassist.com.

 

 
   
Call 1-800-894-8366 to discuss your needs or
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EXPORT TAX BENEFITS
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