Which of the following foreign taxes are not creditable for U.S. tax purposes?
A) Direct taxes paid by a U.S. corporation on income earned in a foreign branch.
B) Income taxes paid to a foreign taxing authority on a dividend received by a U.S. corporation from its 100 percent owned foreign subsidiary.
C) Withholding taxes imposed on a dividend received by a U.S. corporation from its 100 percent owned foreign subsidiary.
D) All of these taxes are creditable.

Question

Which of the following foreign taxes are not creditable for U.S. tax purposes?
A) Direct taxes paid by a U.S. corporation on income earned in a foreign branch.
B) Income taxes paid to a foreign taxing authority on a dividend received by a U.S. corporation from its 100 percent owned foreign subsidiary.
C) Withholding taxes imposed on a dividend received by a U.S. corporation from its 100 percent owned foreign subsidiary.
D) All of these taxes are creditable.

Quizplus · Accepted Answer

Foreign taxes imposed on dividends eligible for the 100% dividends received deduction are not creditable.

Which of the Following Foreign Taxes Are Not Creditable for U.S