Tax incentives for exports remain after the repeal of the extraterritorial income exclusion…

Federal tax incentives for exporters are still available after the repeal of the extraterritorial income exclusion (“EIE”).  With the passage of the Tax Increase Prevention and Reconciliation Act of 2005 on May 17, 2006, these existing export incentives will have a larger impact for exporters.

With the full repeal of the EIE by the end of 2006, now is the time to investigate taking advantage of these export incentives to save your company tax dollars on export sales.

If your company is closely-held, exports goods overseas and meets certain eligibility criteria, your company can receive a tax rate reduction up to 20% on export sales income.  This results in having additional funds to finance distribution payments to owners or ongoing operations.  Additionally, these tax incentives offered to exporters can be accomplished with minimal restructuring or disruption to your company’s business.

The international tax professionals at Pannell Kerr Forster of Texas, P.C. have extensive experience in providing exporters with a variety of tax planning options to assist with helping them achieve their business objectives.  To schedule a consultation with one of our professionals, please contact Karen Love via phone (713) 860-1459 or email klove@pkftexas.com or speak to your PKF Texas tax advisor.

Click below to download the white paper detailing the Interest Charge – Domestic International Sales Corporation (IC-DISC) tax incentive.

Interest Charge - Domestic International Sales Corporation (IC-DISC)