Poland has a corporate income tax rate that is higher than that in the United States by the amount of 40% in Poland and 35% in the U.S. This differential mean that a U.S. parent operating with a subsidiary in Poland can realize an

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The differential in corporate income tax rates means that the U.S. parent company operating with a subsidiary in Poland would likely pay more taxes in Poland than in the U.S. To avoid double taxation, the U.S. parent company can claim excess foreign tax credits on their U.S. tax return for the taxes paid in Poland, up to the amount of the U.S. tax liability on the same income. Therefore, option C, excess foreign tax credit, is the best choice.

Poland Has a Corporate Income Tax Rate That Is Higher