IC-DISC Benefits for Exporters

If you qualify for an IC-DISC, this arrangement allows you to take dividends out of the IC-DISC at a favorable 23.8 percent dividend tax rate – a savings of 11.2 percent off the top rate of 35 percent on your qualifying income.

Benefits of an IC-DISC

• Commission DISC benefits include permanent tax savings on your global sales – 23.8 percent tax rate versus 35 percent tax rate on 4 percent of export sales
• Operating DISC benefits include permanent tax savings of 20 percent on DISC taxable income
• One-time tax deferral opportunity
• Ability to leverage cost of capital
• Means to facilitate your succession or estate planning

Read more about an IC-DISC on our blog, and for assistance with accounting for your exporting business or setting up an interest charge-domestic international sales corporation, contact our international tax accountants.