The income earned by a foreign branch operation of a U.S. corporation is taxable by the United States only when repatriated.

Question

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The income earned by a foreign branch operation of a U.S. corporation is generally taxable by the United States in the year it is earned, regardless of whether it is repatriated or not. However, the U.S. corporation may be able to claim a foreign tax credit for any foreign taxes paid on that income.

The Income Earned by a Foreign Branch Operation of a U.S