The following approaches have been adopted by some countries to eliminate double tax on income transferred across borders except __________.

Question

Quizplus · Accepted Answer

The approaches adopted by some countries to eliminate double tax on income transferred across borders include eliminating tax on foreign source income, offering credit for tax paid overseas, and reaching tax treaties to regulate how much tax should be paid in each country. However, forbidding MNC subsidiaries from claiming royalty payments as tax-deductible expenses is not one of the common approaches.

The Following Approaches Have Been Adopted by Some Countries to Eliminate