The Domestic International Sales Corporation (“DISC”) and the Foreign Sales Corporation tax incentives each have their own unique benefits. Currently, the IRS Code provides two types of export tax incentives, the Interest-Charge Domestic International Sales Corporation (“IC-DISC”) and the Foreign-Derived Intangible Income (“FDII”) deduction.
This recent International Tax Journal article, co-authored by our own Michael Cornett, Director of International Tax Services, examines each incentive to compare and contrast the incentives, including an example comparing the potential benefits. Potential tax legislation that will impact these two incentives is also discussed.
For any questions about export tax incentives, including IC-DISC and the FDII deduction and tax legislation, contact your Cherry Bekaert professional or Mike Cornett.
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