Profits earned by subsidiary are taxed even if it is not repatriated to the parent company as dividends because they are considered as income for the parent company.

Question

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Profits earned by a subsidiary are typically taxed in the country where the subsidiary operates. They are not taxed as income for the parent company until they are repatriated as dividends or other forms of income.

Profits Earned by Subsidiary Are Taxed Even If It Is