For over a decade, SGC has been working with US businesses that export product and assisting them in utilizing many of the US Export Incentives in order to be more competitive in the global marketplace and drive more profits to the bottom line.
IC-DISC (Interest Charged- Domestic International Sales Corporation): This is a US entity that if properly structured and implemented offers two (2) different types of benefits to certain US exporters:
1. The ability to re-characterize certain export profits from being taxed at ordinary income rates to qualified dividend rates.
2. The potential to re-invest certain export profits into the export business on a tax deferred basis until those profits are no longer needed for the export business provided certain criteria is met. In essence, the US government is providing a loan of the taxes owed at a very low interest rate.
SGC's clients that benefit from the IC-DISC structure range from businesses with export revenues ranging from $750K to over $250M. We recommend that any business with at least $100K of export profits consider the benefits of this structure.
Ex-Im Bank Programs: The Export-Import Bank of the United States is the official export credit agency of the United States. Ex-Im Bank has multiple programs for which US exporters can utilize:
SGC has strong working knowledge of these types of programs and assists clients in identifying which programs may be most beneficial. As in many other areas, SGC works more closely with clients than just providing academic advice and making an introduction when it comes to Ex-Im Bank. SGC not only assists its clients in applying to these programs, but will assist in implementing procedures and reporting to maximize program benefits with the least amount of distraction to the company's core business. This goes well beyond simply submitting financial data and is driven by an in-depth knowledge of its clients business coupled with experience participating in these government programs.