According to U.S.tax law, a multinational enterprise headquartered in the United States is allowed credits against its U.S.income tax liabilities in an amount equal to the income taxes it pays to foreign governments.

Question

Quizplus · Accepted Answer

This statement is true. The U.S. tax law allows for foreign tax credits to be applied against income tax liabilities in order to avoid double taxation on income earned abroad by multinational enterprises headquartered in the United States.