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A Direct Foreign Tax Credit Is

Question 45

Multiple Choice

A direct foreign tax credit is


A) computed for direct taxes paid on active foreign-source income of a foreign branch of a U.S. MNC.
B) computed on the indirect withholding taxes withheld form passive income distributed by the foreign subsidiary to the U.S. parent.
C) computed for income taxes deemed paid by the subsidiary.
D) both a and b

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