Parent-level income taxes on a foreign subsidiary's earnings are paid only in the year in which dividends are received.

Name: Parent-level income taxes on a foreign subsidiary's earnings are paid only in the year in which dividends are received.
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Quizplus · Accepted Answer

Parent-level income taxes on a foreign subsidiary's earnings are indeed typically paid in the year dividends are received by the parent company, reflecting the tax principle that income is taxed when it is repatriated or actually received.

Parent-Level Income Taxes on a Foreign Subsidiary's Earnings Are Paid