ETI Program
HIGHLIGHTS
-
Specifically approved by Congress as the replacement for Foreign Sales Corporations
-
Provides a permanent exclusion from income tax
-
Not subject to alternative minimum tax
-
Easy to obtain
-
Inexpensive
-
No visible change in business operations
OVERVIEW
The FSC Repeal and Extraterritorial Income Exclusion Act of 2000 (ETI) repeals the FSC provisions of the Internal Revenue Code and enacts a replacement for the FSC, effective October 1, 2000.
Most people currently having a FSC or participating in a Shared FSC probably will continue to use the FSC provisions throughout 2001, the end of the transition period. Taxpayers that have not previously used the FSC provisions will use the new ETI provision.
When fully phased in, on January 1, 2002, the ETI will replace the FSC as the most widely used export tax reduction vehicle. Unlike FSCs, the new rules apply to both individuals and corporations. Not only regular C corporations, but also S corporations, LLCs, LLPs, partnerships and sole proprietorships can utilize these provisions. The exclusion also applies for individual and corporate alternative minimum tax we well as regular income tax purposes. Accordingly, the population of taxpayers claiming benefits is expected to grow.
The tax savings using ETI can amount to a 15% exclusion of export profits. Treasury Department regulations will provide for marginal costing and grouping rules. By applying special marginal costing and grouping rules, the savings can be maximized.
Congress specifically replicated the Shared FSC provisions with the Shared Partnership provisions in the new legislation.
AN OPPORTUNITY YOU CAN'T MISS
· Federal Income Tax Savings
· Improves Cash Flow
· Be more competitive in the global marketplace
· Business as usual
· Minimal time & effort
· We take care of everything for you
· Full service at a bargain price
· Why Not?
|
