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Once an IC-DISC is formed, annual requirements must also be met. These requirements include:

 At least 95% of the gross receipts must be qualified export receipts.

 A reasonable estimate of the commission must be paid within 60 days of the exporter’s tax year-end.

 An IC-DISC tax return, Form 1120-IC-DISC, must be filed annually by the 15th day of the ninth month following the close of the IC-DISC’s taxable year. (The IC-DISC’s taxable year must be the same as that of its principal shareholder.)

 The IC-DISC must maintain its own separate set of books and records.

 International boycott (Israel) operations must be disclosed (in conjunction with Form 5713).

At least 95% of the IC-DISC’s assets must be qualified export assets that fall into several categories: export property, working capital (only the amount necessary for required working capital), commission receivable, stocks or securities of a related foreign export corporation, and producers’ loans.

Qualified export property must be

 manufactured, produced, grown, or extracted in the United States, and

 for use or consumption outside the United States.

Up to 50% of the fair market value of the export property can be attributable to foreign content.

Qualified export receipts include the following:

 The sale, exchange, or other disposition of export property

 The lease or rental of export property used outside the United States

 Related and subsidiary services

 Dividends from the related foreign export corporation

 Interest on obligations that are qualified export assets

 Engineering and architectural services for construction projects outside the United States

Sales made to U.S. distributors and sales made to foreign disregarded entities may qualify in some cases.