For U.S. exporters, the Interest Charge Domestic International Sales Corporation (IC-DISC) offers a valuable tax benefit—deferred federal income tax on export profits. However, to take full advantage of these savings, companies must adhere to specific regulations, including the IC-DISC Commission Payment Rules, which mandate timely commission payments. The IC-DISC program is built around the concept […]
For exporters using the Interest Charge Domestic International Sales Corporation (IC-DISC) structure, staying compliant with IRS regulations is essential to maintaining tax benefits. One key requirement is IRS Form 8404, Interest Charge on DISC-Related Deferred Tax Liability, which calculates the interest charge on deferred taxes tied to IC-DISC profits. Why is Form 8404 Important? With […]
Exporting is an essential part of the global economy, and the U.S. is a major player in international trade. Taxing exports refers to the practice of imposing taxes or levies on goods and services that are sold and shipped out of a country to foreign markets. While many countries impose direct taxes on exports, the […]
For U.S. exporters, the Interest Charge Domestic International Sales Corporation (IC-DISC) is a powerful but often underutilized tax savings tool. Originally enacted by Congress in 1971, IC-DISC remains the last significant federal tax incentive designed to support businesses that sell goods or services outside the United States. By leveraging IC-DISC, eligible companies can significantly reduce […]
IC-DISC benefits are one of the primary reasons businesses file for this corporate structure change. As a company branches into international sales, the tax incentive can hold over money that can be spent on warehousing, product development, and more. What are the benefits of IC-DISC? IC-DISC tax benefits include tax deferrals, estate-planning aids, reduced federal […]
In 2024, international tax planning remains a critical factor for businesses engaged in cross-border trade. Navigating this complex landscape requires strategies to reduce tax liabilities, optimize compliance, and leverage available export incentives.International tax planning involves creating tax-efficient structures for businesses operating globally to minimize liabilities and maximize compliance across jurisdictions. Effective planning is essential for […]
The Interest Charge Domestic International Sales Corporation (IC-DISC) provides a valuable tax incentive for U.S. businesses engaged in exporting. Companies can enjoy significant tax savings by deferring taxes on export-related profits. However, to fully benefit from this structure, businesses need to understand and manage the IC-DISC interest charge—a requirement that ensures taxes deferred under the IC-DISC are not held indefinitely […]
Foreign income taxation significantly impacts U.S. exporters, particularly when selling goods internationally. One key mechanism to reduce tax liabilities is the Interest Charge Domestic International Sales Corporation (IC-DISC). This tax incentive allows exporters to defer or reduce taxes on their foreign sales income by transforming it into qualified dividends, which are taxed at a lower […]
In July 2025, U.S. exports of goods and services reached a record high of $265.9 billion, according to the U.S. Census Bureau. This growth offers U.S. exporters a tremendous opportunity, and one way to capitalize on it is through the IC-DISC structure, which helps businesses boost profitability by cutting down on taxes. So, how does […]
IC-DISC and FDII are two export incentives for US-based companies with foreign presences to utilize around tax time. However, they have enough differences that you must know one versus another to select the most optimal tax incentive for your business. What are the differences between FDII and IC-DISC? IC-DISC and FDII are different in areas […]
Free Download
Download our free resource to understand how you can utilize IC-Disc services to maximize your export tax savings.