The undistributed income of a minority foreign subsidiary of a U.S.MNC

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Undistributed income of a minority foreign subsidiary of a U.S. MNC is tax deferred until it is remitted via a dividend, meaning it is not taxed until it is actually paid out to the parent company. This is because the subsidiary is considered a separate legal entity and subject to the tax laws of the country in which it operates, rather than the tax laws of the U.S.

The Undistributed Income of a Minority Foreign Subsidiary of a U.S.MNC