The World Trade Center of New Orleans
presents

What is an FSC?

A Foreign Sales Corporation (FSC) is a tax incentive enacted by Congress to encourage export sales, leasing and certain engineering and architectural services. The benefit is an exemption from tax on approximately 15% of the net profits from export transactions. Another way of viewing the FSC benefit is that it represents a 5% reduction in the U.S. corporate rate, i.e., approximately 30% rather than 35%. This represents a permanent tax benefit.

Who should attend?

• CEOs, CFOs, Tax Directors, Tax Managers, and others interested in saving tax dollars on exports.
• Any U.S. company that exports, companies with a FSC that want to maximize FSC benefits, and companies that meet the FSC candidate profile.

FSC Candidate Profile

• Products with 50% or more U.S. content.
• Medium-to-high profit margin on export sales and leasing transactions, or else a high volume of export transactions.
• Companies in a U.S. regular tax (vs. AMT) position.
• Companies with no excess or unused foreign tax credits.
• Companies with excess or unused foreign tax credits and foreign sales in which title passes within the United States.

What type of products and services are eligible for FSC Benefit?

• Products manufactured, produced, grown or extracted in the United States:
• Products held primarily for sale, lease or rental, in the ordinary course of a trade or business for direct use, consumption or disposition outside the United States, and
• Not more than 50% of the fair market value of which is attributed to articles imported into the United States.
• Engineering or architectural services for construction projects located outside of the United States.
• Software Exports under the 1997 Tax Act.
• The following property is not eligible:
• Patents and other intangibles
• Oil or gas

What will be covered?

• General FSC Requirements
• Large FSC
• Small FSC
• Optimizing the FSC Benefit Saves Time and Money
• Why should we look at the FSC again?
• Are we taking all the FSC benefit?
• How do we optimize the calculation?
• FSC Hot Topics
• Look for FSC Opportunities
• The Optimization Strategy
• Planning and Other Opportunities

 About Jeffrey L. Olin

Jeffrey is a Senior Manager in Arthur Andersen LLP’s International Tax Services Group in Chicago, where he specializes in computerized software applications for global tax planning and compliance. He assists clients with multinational tax planning to reduce worldwide effective tax rates, and advises clients on numerous international tax consulting and transactions including analysis of treaties, determination of withholding, calculation of foreign tax credits, analysis of transfer prices, and analysis of Subpart F income. Mr. Olin, a C.P.A., has a B.S. from Carroll College, a J.D. from Marquette University, and an L.L.M. in taxation from DePaul University College of Law. He is active in several professional associations and is a frequent lecturer on international tax topics for the FSC/DISC Tax Association, the Council for International Tax Education, and the Global Educational Services group.

SPONSORING ORGANIZATIONS

City of New Orleans, Office of International Trade

New Orleans U.S. Export Assistance Center

Louisiana District Export Council

Louisiana International Trade Center/SBDC

Traffic & Transportation Club of Greater New Orleans

Registration Fee: $20 for members of the WTC and other co-sponsoring organizations and $25 for non-members.