A Brochure for a Company Providing Interest Charge-Domestic International Sales Corporation (IC-DISC) Treatment by ika10101

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									   IC DISC – Permanent Tax Savings for Closely Held Exporters


                                                 Annual Permanent Tax                            Can your company
                                                 Savings, and more:                              benefit?
                                                 Annual calculation to determine IC-             If you answer yes to either of
                                                 DISC commission results in:                     the following, you should be
                                                                                                 enjoying    substantial    tax
                                                    •   recurring permanent tax                  savings on export sales:
                                                        savings for shareholders
                                                                                                     •   Do   you   export   US
                                                    •   Typically high benefits relative                 manufactured goods?
                                                        to costs
  IC DISC: How does it work?                                                                         •   Do distributors export
                                                    •   Deferral mechanism when
                                                                                                         your US manufactured
     •   Exporting company                              earnings are not distributed
                                                                                                         goods?
         shareholders create new                        out of IC-DISC
         entity, which elects IC-DISC               •   Ability to tax efficiently
                                                                                                 Implementation:
         treatment                                      manage cash flow needs of                    •   No impact on customers
     •   Exporting company and IC-                      exporting company                                or operations
         DISC entity execute a                      •   Potential retirement planning
         commission agreement                                                                        •   Non-disruptive, utilizing
                                                        flexibility
                                                                                                         data which is easily
     •   Exporting company pays IC-                 •   Analysis of allocation and                       accessible
         DISC a commission on export                    apportionment methodologies
         sales                                                                                       •   Highly      experienced
                                                    •   Multi-dimensional profitability                  engagement teams who
     •   Exporting company deducts                      analysis useful in business                      work on or off-site
         the commission                                 review
                                                                                                     •   Efficient        process
     •   Commission income of IC-                   •   Transactional taxable income                     produces       accurate,
         DISC is not taxed                              calculation, reconciling tax                     timely    results    for
                                                        return data to financial                         inclusion in tax return
     •   IC-DISC can pay a dividend in
                                                        information                                      filing
         current or future tax year

     •   IC-DISC dividend is typically              •   Transparent work paper trail
         a qualified dividend, taxed at
         15%

IC-DISC Timeline
 1984
                                          2004                                      2005                                                2006
                                             Qualified dividend rules take effect                          Widespread use of ic-disc entities

   Enactment of IC-DISC Provisions                                                     eti phase out renews focus on ic-disc
IC DISC – Permanent Tax Savings for Closely Held Exporters

IC DISC: The value of
the transactional
computation:
  •   Without IC-DISC, tax
      liability is $5.25M (35%
      x $15M)

  •   At the company level
      IC-DISC computation,
      the commission
      deduction is $7.5M, or
      50% of US Co. taxable
      income of $15M.

  •   At the transactional
      IC-DISC calculation,
      loss transaction is
      excluded and the
      calculation is based
      upon transaction1.
      Therefore, the
      commission deduction
      is $15M or 50% of
      transaction1 export
      taxable income of
      $30M.

  •   In this example, IC-DISC
      has led to tax savings
      of $1.5M

  •   Our Process and
      experience improved
      that result to $3M
IC DISC – Permanent Tax Savings for Closely Held Exporters


                                      Worldwide Trade                 Worldwide Trade
                                      Partners LLC; Our               Partners LLC;
                                      Philosophy:                     Delivery:
                                          •   Clients should               •    Flexible,
                                              never have to pay                 seasoned
                                              for a service                     consultants who
                                              provider’s learning               deliver on time,
                                              curve                             every time

                                          •   We have used our             •    Turn-key delivery
                                              experience to                     including
Worldwide Trade Partners                      benefit our clients               reports, forms,
                                              by developing a                   and
LLC; People:                                  standardized                      documentation
                                              process, yielding
  •   Partners and consultants                consistent,
      specializing in IC-DISC, FSC,                                        •    Results are
                                              accurate and                      reviewed and
      ETI and manufacturing                   transparent results
      deduction                                                                 presented to you

                                          •   We will always
  •   Partners and consultants                lever technology,
      skilled in large volume                 making use of the
      data manipulation                       best-in-class ic-disc
                                                                         Worldwide Trade Partners LLC
                                                                         specializes in delivering value from
                                              commission
  •   All Partners and                        calculation
                                                                         complex quantitative computations for
      consultants are former Big              software
                                                                         US exporters.       Our people, our
      Four accounting firm                                               philosophy, and our technology set us
      Managers or Senior                  •   Specialized
                                                                         apart from any other firm.
      Managers
                                              calculations               The firm has built a national network of
                                              require specialists        consultants, providing clients with local
  •   National network of
                                                                         representation, whenever possible.
      consultants, with ability to
      work remotely,                                                     Please contact us for a free consultation
      substantially reducing or                                          and learn whether you should be
      eliminating travel time and                                        enjoying substantial tax savings on
      expense                                                            export sales.
IC-DISC

                                                                    Interest Charge –
We help exporters                                                   Domestic
                                                                    International Sales
Consulting in IC-DISC,                                              Corporations
Foreign Sales
Corporations(“FSC”),
Extraterritorial income
exclusion (“ETI”), and
manufacturing deduction
(“DPA”)




                          WORLDWIDE TRADE PARTNERS LLC
                              New York, Minneapolis, Los Angeles




                           Email: info@worldwidetradepartners.com

								
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