Last Revised: June 10, 2014
What is an IC-DISC? The Interest Charge-Domestic International Sales Corporation (IC-DISC) is a tax saving vehicle for U.S. exporters. Eligible U.S. companies can recoup or exceed their tax savings on exported product (and in some cases services) revenue by creating an IC-DISC.
Qualified exporters can receive a permanent tax savings of 20 percent or more on Federal income tax from export profits by utilizing an IC-DISC.
If you are unsure if your company is eligible to set up an IC-DISC to take advantage of tax savings, ask the following questions:
- Do you have any transactions outside of the U.S.?
- Do you use overseas distribution?
- Does your product cross any borders?
- Are you generating operating income?
If the answer to any of these is yes, an IC-DISC may be a valuable tax savings option for your business.