If a corporation with a foreign subsidiary is domiciled in a jurisdiction using the territorial approach to taxation,the corporation is taxed on profits earned by both the parent and the foreign subsidiary.

Question

Quizplus · Accepted Answer

If a corporation with a foreign subsidiary is domiciled in a jurisdiction using the territorial approach to taxation, only the profits earned in the local country will be taxed. Profits earned by the foreign subsidiary will not be subject to taxation in the local country.

If a Corporation with a Foreign Subsidiary Is Domiciled in a Jurisdiction