The principle whereby foreign source income is not taxed until received by the U.S. shareholder is known as

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The principle whereby foreign source income is not taxed until received by the U.S. shareholder is known as deferral. This means that the earnings from a foreign country are not immediately subject to U.S. taxes and are only taxed when the funds are distributed to the shareholder. This principle encourages U.S. companies to invest in foreign countries without being taxed twice on the same income.

The Principle Whereby Foreign Source Income Is Not Taxed Until