Are US exporters subject to income tax in importing countries? How does taxation of a branch...

Are US exporters subject to income tax in importing countries? How does taxation of a branch firm differ from that of a subsidiary? Provide examples.

Solutions

Expert Solution

Hello,

Basing on the above question,the below answer is given:

A. Are US exporters subject to income tax in importing countries?

1. Foreign country income taxation of US exporter's export profits varies based on

whether a US exporter exports on a direct basis or through an intermediary.

2. Generally speaking, foreign countries will tax a US exporter's export profits if the

US exporter is considered to be trading or doing business in the country.

B. How does taxation of a branch firm differ from that of a subsidiary? Provide examples.

Differences Between Branch and Subsidary

Example for difference between Branch and subsidary:

**Google is a subsidary company of Alphabet. Alphabet has more than 50% stake in google.

Google and Alphabet have seperate Legal Status & Liabilities.Google is not liable to report to Alphabet.

**Walmart has branches at various places such as Best Price in India etc..Best Price doesn't have seperate

legal status & liabilities.Best Price is responsible to report to Walmart which is it's Head Office.

Thank You.....

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Are US exporters subject to income tax in importing countries? How does taxation of a branch...

Are US exporters subject to income tax in importing countries? How does taxation of a branch firms differ from that of a subsidiary? Provide examples.

A us corporation is subject to an income tax rate of 35% and has a branch...

A us corporation is subject to an income tax rate of 35% and has a branch in the UK which paid the national corporate tax rate of 30% on its earnings there. The branch generated taxable income from its operations in UK equivalent to $5,000,000. What is the amount of taxes owed to the us government on the income generated in the UK

In terms of Adam Smith’s canons of taxation, how does the Federal income tax fare as...

In terms of Adam Smith’s canons of taxation, how does the Federal income tax fare as far as economy is concerned?

6. a) How to the personnel income tax and corporate tax cause economic double taxation? b) How...

6. a) How to the personnel income tax and corporate tax cause economic double taxation? b) How to eliminate the economic double taxation? Explain the corporate tax systems.

How does one find the earnings to subject tax?

a.Explain how the taxation of corporations protects the integrity of the personal income tax. What are...

a.Explain how the taxation of corporations protects the integrity of the personal income tax. What are the other grounds on which a corporation tax may be justified? b. Explain the possible impact of the corporation tax on resource allocation, tax incidence, and excess burden using the different views of the corporation tax. Which view do you think is more realistic? Justify your answer.

a) Explain how the taxation of corporations protects the integrity of the personal income tax. What...

a) Explain how the taxation of corporations protects the integrity of the personal income tax. What are the other grounds on which a corporation tax may be justified? b) Explain the possible impact of the corporation tax on resource allocation, tax incidence, and excess burden using the different views of the corporation tax. Which view do you think is more realistic? Justify your answer.

Yes, this is a Taxation subject. But the system does not have that category, so selected...

Yes, this is a Taxation subject. But the system does not have that category, so selected Accounting. Zero Corporation is the parent corporation of a consolidated group of corporations that file a consolidated calendar year tax return. Its members include subsidiaries Loss Corporation and Gain Corporation. As of the end of 2019, the consolidated group hada net operating loss carryforward of $5 million. All of the net operating loss carryforward is attributable to losses of Loss Corporation. On April 30,...

Is taxation theft? Why or why not? Research the Progressive income tax, the flat tax and...

Is taxation theft? Why or why not? Research the Progressive income tax, the flat tax and the fair tax. Which one do you prefer and why? Make sure you justify your answer

Should capital income be subject to personal taxation? There are arguments for and against its inclusion...

Should capital income be subject to personal taxation? There are arguments for and against its inclusion in the personal tax base. In all cases, the arguments center around three issues: equity, efficiency and administrative complexity. Your task is to evaluate the merits of excluding capital income from the personal tax base in light of these three issues.

Subjects