When excess tax credits go unused,the foreign tax liability for a branch is greater than the corresponding U.S.tax liability when the foreign income tax rate is greater than the U.S.rate.Calculate the total tax liability for a wholly-owned subsidiary when excess tax credits cannot be used in a country given: U.S. tax rate $= 35 \%$
Foreign tax rate $= 39 \%$
Withholding tax rate $= 5 \%$

Question

Quizplus · Accepted Answer

The Answer of When excess tax credits go unused,the foreign tax liability for a branch is greater than the corresponding U.S.tax liability when the foreign income tax rate is greater than the U.S.rate.Calculate the total tax liability for a wholly-owned subsidiary when excess tax credits cannot be used in a country given: U.S. tax rate $= 35 \%$
Foreign tax rate $= 39 \%$
Withholding tax rate $= 5 \%$

When Excess Tax Credits Go Unused,the Foreign Tax Liability for a Branch