A Japanese branch of a U.S. corporation paid $4,200,000 in taxes to the government of Japan on income it generated there. The corporation is subject to a 35% tax rate in the U.S.
-How much tax will be owed to the U.S.government on the Japanese branch income?

Question

Quizplus · Accepted Answer

The corporation will owe $0 to the U.S. government on the Japanese branch income because the taxes paid to the government of Japan can be credited against the taxes owed to the U.S. government, avoiding double taxation.

A Japanese Branch of a U