Foreign branch income is ________.
A)deferred from U.S. taxation until a dividend is remitted to the parent company
B)considered passive income and therefore not subject to U.S. taxation
C)directly included in the parent's taxable income in the year in which it is earned
D)considered active income and therefore deferred until future years

Question

Quizplus · Accepted Answer

Foreign branch income is directly included in the parent company's taxable income in the year it is earned, according to U.S. tax regulations. This means the income is taxed on a current basis rather than being deferred.

Foreign Branch Income Is ________