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Tax Reform and Export Tax Incentives

Today, the use of an IC-DISC (Interest Charge Domestic International Sales Corporation) generates permanent tax savings for U.S. exporters, with additional tax savings provided by the Domestic Production Activities Deduction (“DPAD”).

Tax reform proposals that would have the biggest impact on U.S. exporters are:

- The corporate income tax rate and its applicability to pass-through companies,
- Capital gains tax rate and whether it continues to apply as the rate for qualified dividends,
- The potential elimination of the 3.8% passive income tax, and
- Border adjustments.
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Global Tax Planning in Light of Trump/House Tax Reform

In light of BEPS and the new Trump/House repatriation proposals, tax planning is more important than ever. There are up to $2.5 trillion dollars that could be repatriated over the next 3 years and hundreds of billions of tax assets that might go unused unless companies properly test and execute the proper tax strategy. In order to properly plan, companies need to see the full impact of structural changes, utilizing credits and deductions, intercompany transactions and how this affects E&P pools and international return calculations globally. Companies using excel spreadsheets obtain a high-level view of the tax impact, but the devil is in the details. Companies deserve accurate, eas-to-understand reports with actionable information at their fingertips.

The answer is VantagePoint – the most complete and easy to use global tax planning tool on the marketplace. VantagePoint Global Tax Software has a detailed international modeling tool for BEPS and repatriation with pre-canned Trump and House proposal modeling scenarios. These planning scenarios interact with complex tax calculations (E&P, Foreign Tax Credit, Subpart F, Domestic Production Activities Deduction, IC-DISC) and provide easy modeling of tax pools and tax adjustments. VantagePoint immediately shows the impact of tax planning (Repatriation, BEPS, Transfer Pricing) in one overview across all tax types and calculates a global effective tax rate. For the next 2 years, getting tax planning right is essential, and Forte’s product is used by Fortune 1000 companies and Top 100 CPA firms as the trusted solution.

Accounting Today says, “Forte International Tax has earned an Honorable Mention for its Vantage Point 4.3 by adding a detailed international modeling tool covering the repatriation proposals of the Trump administration and others so that users can begin creating planning scenarios to make the most (or minimize the worst) of whatever gets enacted.”

Accounting Today’s 2017 Top New Products

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Global Tax Optimization

Global tax optimization is the process of achieving and communicating the best right tax result at the lowest practicable cost. We say best right because a variety of controllable factors can and will impact the amount of taxes attributable to business operations. Tax consequences must be communicated to management, investors and governments. The world is getting smaller and the demand for transparency continues to increase.
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Take Advantage of U.S. Manufacturing and Export Incentives

If your business manufactures goods, develops software, generates power, or helps construct buildings in the United States, you may qualify for significant tax benefits. And if your company exports your goods overseas, or you can trace your products into foreign commerce, you may qualify for powerful export tax incentives.
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Significant Transfer Pricing Developments – United States and International

There have been significant IRS developments and court cases that affect transfer pricing. This article will highlight those changes for the United States and internationally including Mexico, Canada and other countries.
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Australian Taxpayer Wins Appeal of Transfer Pricing Tax Assessment

Australia, Canada and Brazil are among the countries that have been increasing their aggressiveness in “enforcing” their transfer pricing regulations during 2009 and 2010. In this article, we are highlighting a recent (June 25, 2010) taxpayer win against the Australian Taxation Office (ATO).
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Budget Increases for Transfer Pricing Administration and Examination

The Obama Administration has made enforcement of transfer pricing legislation a priority. In fact, for the first time in IRS history, an internal Transfer Pricing Council will focus on specific transfer pricing issues.
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GlaxoSmithKline Inc. v. The Queen Decision Reversed on Appeal

In a major reversal, the Canadian Federal Court of Appeal (FCA) has ruled that GlaxoSmithKline Inc. did not violate the Canadian Income Tax Act with its early 1990s transfer pricing practices for ranitidine, the active ingredient in anti-ulcer drug Zantac. This outcome gives credence to a view held by many taxpayers and advisors that the arm’s length price of individual transactions should be established by considering all relevant intercompany transactions within the related group.
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Reducing Your Odds of Being Audited

Many factors are taken into consideration by taxing authorities when selecting a taxpayer for audit. One thing is certain: the likelihood of being audited has significantly increased over the past 12-24 months.
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Foreign Import: Is the U.S. Headed for a Value Added Tax?

Even as the economic meltdown of the past two years shows signs of improvement, Americans are faced with an economic crisis of a different sort. New government spending, on everything from the economic stimulus to health care reform, means federal deficits are heading toward record highs.
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Exporters Should Consider the Tax Benefits of an IC–DISC

An Interest Charge–Domestic International Sales Corporation (IC–DISC) is a strong tax–saving opportunity. With the extension of capital gains tax rates for qualified dividends included in the Tax Relief Act of 2010, permanent tax savings result from the current tax rate differential.
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