Strategic Cost-Saving Opportunities Volume II | Page 6

Benefits of an IC -DISC
Clearly, launching an IC-DISC and then complying with its
requirements will require a business to make an initial and
ongoing investment of time and resources. But the benefits
to a company can be substantial.
In general, an IC-DISC will be beneficial for companies
with at least $1 million in export sales, along with at least
$100,000 in profits on those sales, Eckert says. Companies
with higher sales and profits will see additional value from
establishing an IC-DISC or expanding its use.
The law provides several ways to calculate the commission
you can pay to the IC-DISC. The company associated with
the IC-DISC can put roughly 50 percent of its profit from
export sales into the IC-DISC as a commission, Eckert
says. However, it may be possible for the company to put
as much as 70 percent of export profits into the IC-DISC.
To view a video that further explains the benefits of an
IC-DISC, view below or click here. 1
1

Scratching The Surface

This strategy remains underused, and many business
managers aren’t aware of the benefits they might be able
to gain from it. At Brown Smith Wallace, we can assess
whether your company is eligible to lower its tax obligation
with an IC-DISC.
IC-DISCs may perform other functions aside from those
discussed here. We have the expertise to advise you on
how to structure an IC-DISC so it provides the maximum
benefits for your company. We can also help ensure, as
you move forward, that you remain compliant with the
requirements of this tax benefit.
IC-DISC // 06

Click here to request a copy of our IC-DISC infographic.

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