Export Tax Savings Assessment

Did you know that a Domestic International Sales Corporation (DISC) can save companies with net export profits of $1 million $40,000 or more in federal income tax per year?

If your company’s net export profits are $1,000,000 or more, establishing a Domestic International Sales Corporation could help you reduce your export tax bill by between 50 and 100 percent. The DISC is the oldest tax benefit available to exporters. 

A DISC acts as a separate, legal, tax-exempt entity from its parent company that doesn’t pay tax on commission income. Therefore, using a DISC, a U.S. company pays “commission” to the DISC based on its profits from the sale of qualifying export products (explained below). This commission is deductible by the parent company. In return, the DISC pays a dividend to its shareholders. This is a qualified dividend under the law and is taxed at up to 23.8 percent, compared to the standard 35 to 43.4 percent export tax rate.

To qualify, a company must:

  • Be a U.S. manufacturing or distribution business that exports U.S. goods
  • Be an architectural and engineering firm that oversees non-U.S. construction projects

Qualifying exports must:

  • Be manufactured, produced, grown or extracted in the U.S.
  • Be used or consumed outside of the U.S.
  • Have no more than 50 percent of the export property value related to imported costs or components

Companies interested in establishing a DISC should also be aware of several restrictions that apply. The entity or export cannot be leased or rented to a related person or receive income from intangibles. Also included in these restrictions are certain oil, gas, coal and uranium products, unprocessed softwood timber and controlled products which are in short supply,
If your company and exports meet the criteria listed above and your net export profits exceed $1 million, take this assessment to see how much money you could be saving.  

Once you have completed the assessment, a CEO Tools-designated export tax specialist will contact you within 3-5 business days to schedule a consultation call to review your report.

What you will need:

  • 15 minutes to complete the assessment
  • Knowledge of your company’s federal income tax rate, domestic and export sales volume and EBIT for last year and projections for the next 12 months

What you will get:

  • Export Tax Savings report with estimated savings
  • Consulting call with an export tax specialist to discuss your report
  • View preview here


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