Export Tax Services

USA Today
"The IC-DISC offers an opportunity for a partnership or an S corporation to convert ordinary
income taxed at 35 percent to taxable rates of only 15 percent."

Who Needs Export Tax Services?
Any business that has export revenue that exceeds one million dollars annually. AmCorp Management experts can provide a complete export tax management system, from the creation of your individual program to compliance and management services. With the repeal of the Extraterritorial Income Exclusion ("ETI"), the only option available for exporters to obtain tax benefits is through the Interest Charge-Domestic International Sales Corporation ("IC-DISC").;

What Is An IC-DISC?
The IC-DISC is a sales corporation set up on behalf of the primary exporting company and acts as its sales agent. The sales agent (IC-DISC) earns a commission based on the export sales of its related supplier, using a detailed in a commission agreement between the primary exporting company and the IC-DISC. The primary exporting company receives a tax deduction for the commissions paid to its sales agent (IC-DISC), and due to the rules established by the Internal Revenue Code, the IC-DISC does not pay federal income tax on commissions, rather it can either distribute the earnings as a taxable dividend to its shareholders, or retain the earnings, deferring  any taxation to the future. The dividends paid by the IC-DISC to its U.S. individual shareholders are taxable at a maximum rate of 15% rather than the maximum tax rate of 35%, thus lowering U.S. shareholders tax requirements from 35% to only 15% a tax reduction, which reduces the net tax requirement by fifty-eight percent.

Other IC-DISC Benefits
Other benefits available under the IC-DISC regime are effective from the date you create your IC-DISC and beyond. Because of this, the longer a taxpayer waits to form an IC-DISC, the less benefits they will receive. Other IC-DISC benefits include:
-Lower effective tax rate
-Permanent tax savings on exports
-Reduced taxable income
-Elimination of double taxation
-Increased income to shareholders
-Increased cash flow
-Deferral of IC-DISC income, giving you more flexible operating capital
-Ability to facilitate estate, retirement, and succession planning
-Means to leverage the cost of capital

Our Methodology
Based on the principles and requirements pertaining to an IC-DISC, this approach has helped hundreds of eligible companies realize significant tax savings for years to come. The first phase of our process is to determine if an IC-DISC makes sense for your company is to conduct a No-Cost, No-Obligation Feasibility Study/Assessment. Once we verify that you qualify we can proceed with analyzing the most effective way to establish your own tax saving IC-DISC program.