Countries differ in how they tax foreign-source income of their domestic MNCs.

Question

Quizplus · Accepted Answer

Different countries have different policies on how they tax foreign-source income of domestic MNCs. This means that companies may opt for different structuring options within a country to minimize their tax liabilities based on the country's tax policies.

Answer: B
 Despite the differences in how countries tax foreign-source income, U.S-based MNCs can benefit from tax treaties and foreign tax credits to minimize the impact of foreign taxes on their global tax liabilities.

Answer: C
 This statement is incorrect as countries have different tax policies and rates on domestic income of their domestic MNCs, which can affect a company's tax liabilities.

Therefore, the correct answer is:

Answer: A and B

Countries Differ in How They Tax Foreign-Source Income of Their