In: Accounting
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.
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.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.
Difference between branch and sibsidary
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.