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This is a sample brochure for a company that provides consulting in IC-DISC as well as offers IC-DISC treatment to exporters. This brochure explains how IC-DISC treatment works, how it is implemented, and what tax savings and benefits it can bring to an exporting company using it.
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: email@example.com
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"A Brochure for a Company Providing Interest Charge-Domestic International Sales Corporation (IC-DISC) Treatment"Please download to view full document