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Article: Export incentives: here's a money-saver that's never been targeted by the WTO.(World Trade Organization)(Extraterritorial Income Exclusion )
- Article from:
- Detroiter
- Article date:
- July 1, 2005
- Author:
CopyrightCOPYRIGHT 2005 Detroit Regional Chamber. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The Extraterritorial Income Exclusion (EIE) created by the American Jobs Creation Act of 2004 is now being phased out and will disappear from the Internal Revenue Service code altogether after 2006. It's going the way of other export incentives for U.S. companies due to economic sanctions imposed by the World Trade Organization.
However, there is one export incentive that remains intact and is now more attractive than ever due to the lowered rate of tax on dividends created by the Jobs and Growth Tax Relief Reconciliation Act of 2003. It's called the Interest Charge--Domestic International Sales Corporation or IC-DISC, and it has survived the repeals of U.S. ...