One of the tax advantages toan individual using a corporation through which to earn income in Germany is deferral of U.S. taxation on active business income earned by the corporation until such income is remitted back to the United States.

Question

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This is correct. The U.S. follows a territorial tax system, meaning that only income earned within its borders is subject to taxation. Active business income earned by a corporation in Germany is not subject to U.S. taxation until it is remitted back to the U.S. in the form of dividends or other payments. This allows for deferral of taxation and potential tax savings.

One of the Tax Advantages Toan Individual Using a Corporation