The history of tax laws governing export tax incentives has been in constant flux over the last few decades, with disparities raised by the United States and the World Trade Organization in ongoing efforts to provide international guidelines for promoting fair and equal trading opportunities.
As the new tax laws are being implemented, it can be crucial for your company to take advantage of all tax incentives for exporters.
Eligibility categories
Currently, interest-charge domestic international sales corporation (IC-DISC) is the only export tax incentive provided currently to U.S. Companies under the Internal Revenue Code.
There are three basic types of companies typically eligible for export tax incentives; direct exporters, architectural and engineering services, and indirect exporters.
Many companies do not know that they qualify for one of these categories!
Direct exporters
The first type of company directly exports the goods that it manufactures. Their products and certain services are purchased directly through exports.
A good example would be a Michigan based company that manufactures snow shoes and ships directly to Canada.
Architectural and engineering services
The second type of company eligible for export tax incentives are architectural and engineering services for buildings being erected outside the United States.
A prime example is a New York based engineering company providing the designs for building a bridge in Cambodia. Under IC-DISC guidelines, this company would be able to receive export tax benefits through proper filing.
Indirect exporters
The final types of companies who can receive export tax incentives are indirect exporters who manufacture components that are utilized in goods being exported or reseller of goods that were manuafactured in the US. Additionally, parts that are shipped with exported goods are often covered by the same incentives, such as shipping a spare tire with a tractor delivered to Africa.
These types of companies often miss out on tax incentives for exporters.
Why PIASCIK
It is always important to seek professional advice to determine if your company qualifies for export tax incentives.
PIASICK is knowledgeable in every current venue of US export tax incentives. Our highly trained and educated international tax professionals can direct you to making the most of your company's export tax benefits with world-class service and precise planning that has your best interest in mind.
PIASCIK international tax professionals have been working with export tax incentives for decades and with over 75 years of combined international tax experience including current clients in over 49 countries we can help you too. PIASCIK is recognized as an national leader on export tax incentives, including the IC-DISC regime. PIASCIK representatives include the President of the Virginia International Business Council and the Treasurer for the Society of International Business Fellow. PIASCIK has also been a partner for all of Virginia's inbound and outbound international programs for the last 8 years. We are more than an experienced international accounting company. Contact us today and see why so many others turn to PIASCIK for understanding all of their international tax needs.
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