AmCorp Management is an expert in helping companies claim export tax benefits through the EIE and IC-DISC provisions. They offer no-cost feasibility studies to determine if a company is eligible for these tax savings programs. The EIE allows companies to exclude a percentage of foreign trade income from federal taxes in 2005-2006, saving an estimated 15-30% in taxes. The IC-DISC provides a permanent 50% tax savings on qualifying foreign trade income by subjecting it to a 15% dividend tax rate rather than the usual 35% corporate tax rate. AmCorp can help qualified exporters take advantage of these provisions through their filing services.

1. The Nation’s Leader in Export Tax Benefit Services

2. AmCorp Management, Inc. has been
highlighted by the following media outlets
Plus many more…

3. AmCorp Management, Inc. is the Nation’s
Leader in Export Tax Benefit Services
AmCorp’s Tax Team is the Nation’s leader in Export Tax Benefits. Our
p p
Tax Experts sole practice is identifying and securing Corporate Export
Tax Benefits.
We have one of the most experienced teams in the industry they partner
industry,
with some of the country’s leading CPA firms, Law firms, Private Equity
firms and various professional financial services firms and institutions
to help you not only reduce taxes but maximize cash flow.
Today we are not here to sell you anything, we
want to highlight a couple of opportunities which
may dramatically increase you company’s
company s
operating capital and improve future corporate
earnings.
The two export tax areas we will discuss are
the EIE and IC-DISC tax provisions.

4. EIE and IC-DISC Tax Provisions
What is EIE?
(EIE: Extraterritorial Income Exclusion: Income Exclusions on Income from ETI)
(ETI: Extra-Territorial Income: Income earned from exporting goods outside the U S )
U.S.)
The EIE are tax benefits and incentives that are available to any U.S.
taxpayer that exports property that is manufactured or produced in the
United States. Goods may also be manufactured outside the United
y
States, with some qualifying caveats.
What is IC-DISC?
(Interest-Charge Domestic International Sales Corporation)
An IC-DISC is a domestic corporation formed to
act as a commission agent f export sales. An
t i i t for t l A
IC-DISC provides huge permanent tax savings
for privately held U.S. exporters by allowing
a portion of the sales p
p profits to be exempt from
p
the corporate tax (35%) by making it subject to
a Capital Gains tax of 15%.

5. What The Experts Say About EIE
ETI Tax Benefits
“…the ETI tax regime provides permanent tax savings to those who
lif t h l k th
qualify, taxpayers who overlook these rules may miss opportunities to
l i t iti t
reduce their tax liabilities substantially.”
- The Tax Advisor
Extraterritorial exclusion and the FTC - (foreign tax credits)
“More taxpayers that export goods are reaping the tax benefits from the
extraterritorial income exclusion (EIE). The EIE allows a corporation to
exclude qualifying foreign trade income (FTI) from income
foreign-trade income.
- USA Today
International Tax Incentives
Since Oct. 1 2000 U S exporters have been
Oct 1, 2000, U.S.
allowed to exclude certain export sales from
federal taxable income. The tax benefit is an
exclusion of 15 to 30 percent of export sales
p p
income from U.S. taxation.
- Wall Street Journal

6. Extra-territorial Income Exclusion (EIE)
The EIE rule was signed into law on November 15, 2000. It is effective
for the transactions beginning on or after October 1, 2000. The EIE rule
g g ,
is designed to promote exports by U.S. taxpayers. Taxpayers who export
products are generally allowed an exclusion of a percentage of the
income related to their exports
exports.
Applies to U.S. C Corporations, Foreign Corporations, U.S. S
Corporations partnerships and individuals The benefits are much more
Corporations, individuals.
expansive than the prior Foreign Sales Corporation (“FSC”) rules.
The
Th EI rules allow t
l ll taxpayers t amend previously
to d i l
filed returns to obtain any benefits available so
long as the years involved are not closed under
the statute of limitations (i.e., 3 years).

7. How The EIE Works
Income Statement Total Revenue Export Revenue
Gross Receipts $20,000,000 $6,600,000
COGS 60% (Cost of Goods Sold) ($12,000,000) ($3,960,000)
Gross Margin $8,000,000 $2,640,000
SGA Expenses 50% (Sells & General Admin) $4,000,000 $1,320,000
Taxable Income $4,000,000 $1,320,000
Overall Profit Percentage 20.00 % 20.00 %
Method of Calculating ETI Exclusion
15% of FTI (F i Trade IIncome)
(Foreign T d ) $198,000
$198 000
1.2% of FTGR (Foreign Trade Gross Receipts) $79,200
Larger EIT Exclusion of the two methods $198,000
Effective Tax Rate 35.00%
2005 Federal Income Tax Savings (Fadeout = 80% of benefit) $55,440
2006 Federal Income Tax Savings (Fadeout = 60% of benefit) $41,580
“Consequently, time is ticking for U.S. exporters to claim EIE for previous tax
years where qualified exports existed” - Tampa Bay Business Journal

8. What The Experts Say About IC-DISC
IC-DISC: Tax Benefits for Exports 2007
“The IC-DISC offers an opportunity for exporters to convert ordinary
income t
i d t t to di id d income t
taxed at 35 percent t dividend i taxable at reduced
bl t d d
rates.” - The Tax Advisor
Interest-Charge Domestic International Sa es Co po at o
te est C a ge o est c te at o a Sales Corporation
Owner-managed exporting businesses can recoup — or even exceed
— their tax savings by creating an interest charge-domestic
international sales corporation (IC-DISC). - CFO.com
Tax Economics
Combined with the favorable dividend tax rules
enacted under the Jobs and Growth Tax Relief
Reconciliation Act of 2003, the IC-DISC now
provides a permanent 20 percent tax savings
for qualifying U.S. exporters.
- New York Times

9. What The Experts Say About IC-DISC
The IC-DISC rule was created by Congress in 1984 as a deferral
benefit for exporters on the first $10M of qualified exports.
Most taxpayers opted to utilize the more beneficial FSC rule that was
repealed in 2000. However, Congress changed the dividend tax rate to
15% in 2003 and made the IC-DISC a very valuable export tax
i
incentive t privately h ld b i
ti to i t l held businesses.
It applies to:
Manufacturers and Distributors
Engineers and Architects who work on
projects that are located abroad even if
the work is performed in the US
US.

10. How Company Export Taxes Are Paid
EIE Benefits
Shareholder owns their main
company and exports its
products directly to buyers out
of the U.S. Borders. The
Shareholder pays a 35% tax
rate as normal income on the
earnings received from the sell
of their export products.

11. How The IC-DISC Works
Shareholder owns their main
company and exports its
products directly.
Shareholder creates an IC-
DISC to provide exporting
services through a
commission agreement for
goods sold outside the U.S.
borders. The tax rate is now
15% from dividend income
instead of the 35% tax rate
from normal earnings.
(The existence of the IC-DISC is
transparent to all customers)
customers).

12. How The IC-DISC Works
Income Statement Total Revenue Export Revenue
Gross Receipts (1/3 Export) $20,000,000 $6,600,000
COGS 60% (Cost f G d S ld)
(C t of Goods Sold) ($12 000 000)
($12,000,000) ($3,960,000)
($3 960 000)
Gross Margin $8,000,000 $2,640,000
SGA Expenses 50% (Sells & General Admin) $4,000,000 $1,320,000
Taxable Income $4,000,000 $1,320,000
Overall Profit Percentage 20.00 % 20.00 %
Method of Calculating IC-DISC Deduction
50% of FTI (Foreign Trade Income) $660,000
4% of FTGR (Foreign Trade Gross Receipts) $264,000
$264 000
Larger IC Deduction of the two methods $500,000
Effective Tax Rate Without IC-DISC 35.00%
Federal Income Tax Without IC-DISC $231,000
Effective Tax Rate With IC-DISC
IC DISC 15.00%
15 00%
Federal Income Tax With IC-DISC $99,000
Federal Income Tax Savings $132,000
“The IC-DISC will improve cash flow for any business that has a qualifying
net income from export sales” - San Francisco Chronicle

13. What The EIE and IC-DISC
Can Do For You
EIE IC-DISC
(For Years 2005 and 2006) (Current and Future Years)
Provides an estimated Provides an
reduction of 15 to 30% tax estimated 50% tax
savings over standard savings over standard
exporter tax filings. exporter tax filings.
Q lif i f
Qualifying foreign t d i
i trade income i is Q lif i R i t
Qualifying Requirements
determined using one of the following
three methods: Must be a US Corporation
15% of foreign trade net income method 95% of FTGR must be from export sales
1.2% of foreign trading gross receipts 95% of total assets must be qualified export
from a transaction (but capped at 2X what assets on the close of each tax year
Timely election to be treated as IC-DISC
is earned under the income method)
Cannot be part of a controlled group
g
30% of the “foreign sales and leasing
income” from the transaction (FTGR - Foreign Trade Gross Receipts)

14. Most Common Asked Questions
Shouldn’t I already be doing this?
Not necessarily, experience shows that less than 10% of the
y p
companies that qualify actually take advantage of these exclusions and
incentives. Most of those are public companies who can afford to
access specialty tax services, plus it is a very complex process.
Will this cause an IRS audit?
No, the IRS has defined the process for the EIE and IC-DISC
procedures and when they are followed there are no problems. We
have over 4,300 problem free tax clients. Plus if there ever is an issue
with our work we stand behind it 100% with no cost to the client.
How do I know if I qualify?
By allowing AmCorp to do a no-obligation,
no-cost Feasibility Study on your tax filings.

15. Our Process
P id ith t bli ti f ibilit t d
Provide you with a no-cost, no-obligation feasibility study
This will:
• Identify your EIE and IC-DISC tax savings
• Outline the process
• Outline our pre-determined flat based fee
• Highlight your responsibilities
• Detail the timeline of the process

16. The Next Step
YOU
SUBMIT A LETTER OF UNDERSTANDING
PROVIDE COPIES OF THE FOLLOWING:
Required tax records
Contact Person
AmCorp Management
ANALYZE YOUR RECORDS
PROVIDE A FEASIBILITY STUDY
Upon approval of the Feasibility Study, we
will prepare a quality and IRS approved
filing documents for you to recover
your additional tax revenue.