Do international tax rules provide incentives for companies?
Yes, there are significant cross-border tax incentives available in the U.S. and abroad. A key U.S. incentive for exporters is the IC-DISC (Interest Charge Domestic International Sales Corporation). Although this incentive has existed for more than 35 years, many U.S. companies aren’t aware of it or may not realize that they qualify. It can significantly reduce the U.S. tax by 50 percent or more on income from sales of certain export products and from certain international services. The IC-DISC rules are highly complex, however, so an experienced international tax consultant can help a company identify and capture the maximum IC-DISC export tax benefits. What risks exist for companies that do not develop effective international tax strategies? Companies that are not familiar with international tax rules, cross-border transfer pricing requirements and double tax treaties are much more likely to suffer unnecessarily high global tax costs, including increased tax compliance burdens and ta
