Contact UsCan Engineering or Managerial Services in the US on Foreign Projects Qualify for an IC-DISC?
Can Engineering or Managerial Services in the US on Foreign Projects Qualify for an IC-DISC?
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Brett Thompson, JD, CPA
Using a DISC for Foreign Construction. The DISC does not require that goods be manufactured in the US for sales overseas. Engineering work done in the US for foreign construction projects also qualify, such as work on the Three Gorges Dam in China, or on equipment used in Middle East also qualifies. Exploration for oil and gas does not qualify.
Code §993 states in part, “… qualified export receipts of a corporation are… (G) gross receipts for engineering or architectural services for construction projects located (or proposed for location) outside the United States, and (H) gross receipts for the performance of managerial services in furtherance of the production of other qualified export receipts of a DISC.
Regulations are issued to further explain what receipts qualifies.
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320 weeks ago
Code §993 states in part, “… qualified export receipts of a corporation are… (G) gross receipts for engineering or architectural services for construction projects located (or proposed for location) outside the United States, and (H) gross receipts for the performance of managerial services in furtherance of the production of other qualified export receipts of a DISC.
Regulations are issued to further explain what receipts qualifies.