Paul Ferreira, CPA, President, Export Tax Management, Inc.
Jennifer Simpson, Regional Director, Export-Import Bank of the United States
More than 50% of small and medium-sized business (SMB) exporters are overpaying on their taxes and don’t even know it. Most small business exporters are also taking unnecessary risks with unprotected credit extended to foreign buyers.
Aiming at keeping jobs domestic, while encouraging global sales, the U.S. government offers two programs that can help SMB exporters lower risk and increase their revenues:
- Interest Charge-Domestic International Sales Corporation (IC-DISC): An Internal Revenue Service (IRS) export tax credit that enables SMB exporters to reduce their tax burden on products sold overseas.
- Export credit insurance: An Export-Import Bank of the United States (EXIM) policy that covers up to 95% of foreign receivables for small business exporters.
