Under U.S.tax law, a parent American company can defer U.S.taxes paid on the income of its foreign subsidiary as long as that income is retained overseas rather than repatriated to the United States.

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This is known as the "deferral of foreign income" rule and is a provision in the U.S. tax code. It allows U.S. companies to avoid paying taxes on the overseas income of their foreign subsidiaries until that income is repatriated, or brought back, to the United States. As long as the income remains overseas, the parent company can defer paying U.S. taxes on it.

Under USTax Law, a Parent American Company Can Defer U