Delivering benefits and removing complexity for companies leveraging export incentives.

Companies stand to benefit from additional deductions available to businesses conducting international sales. A&M Tax’s Export Incentives solution helps organizations create additional value from existing exports of products and services, in line with the Foreign-Derived Intangible Income (FDII) legislation implemented in 2017 and the FDII structure. 

What Are the Credits and Incentives Tax Benefits for Exporting Companies?  

Export incentives like FDII offer several benefits to any company trading internationally, no matter the sector. They include:

• Direct and indirect benefits from lower tax payments. Deductions under FDII reduce organizations’ tax obligations and, where appropriate, effective tax rates. This applies to the preferred tax treatment of foreign trade income and interest charge deferrals that are available under the FDII, for example.
• Removing complexity from international sales documentation. Companies trading internationally invariably are required to deal with changing processes and ledgers from location to location. In addition, it is not always easy to identify exactly what qualifies as international sales. Tax teams can find it difficult to apply the right calculations to determine expected deductions and need experts proficient in local market requirements.   

Why Should your Company Use A&M’s Export Incentives Services? 

Alvarez & Marsal is a market leader in counseling small and middle market companies to take advantage of the FDII incentives. A&M offers the following distinctions for its clients.

• We understand the broader context: FDII legislation can be associated with other tax laws. For instance, FDII deductions share many characteristics with the well-established Section 199 tax break. Our longstanding experience helping organizations realize value through Section 199 makes A&M a logical choice for businesses exploring their options when it comes to FDII.
• We work in nimble, dedicated and experienced teams: A&M Tax combines a flexible and tailored approach with decades of industry experience that serves as a valuable guide through the process for in-house finance, tax and treasury teams.

Did you know? 

A&M’s simple four-stage Export Incentives process benefits all related client projects. Our work entails:

• Scoping: understanding the potential benefit for your organization. 
• Delivery: understanding the relevant data and identifying the high-priority levers and initiatives to exploit.  
• Implementation: working alongside the client team to seamlessly optimize tax liabilities under FDII.   
• Sustainment: building robust partnerships to take advantage of new opportunities on an ongoing basis. 

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