A U.S.corporation operating in a foreign country may be assessed income taxes on the same income by both the United States and by the country in which it operates.

Question

Quizplus · Accepted Answer

This is known as double taxation, and it can occur when there is no tax treaty between the two countries or when the tax laws of the two countries are not compatible. The U.S. has tax treaties with many countries to avoid double taxation.

A USCorporation Operating in a Foreign Country May Be Assessed Income