U.S.regulations tax U.S.shareholders on the firm's overseas income when it is earned,regardless of when the parent company in the United States receives it.

Question

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This is known as the "worldwide" or "global" tax system, where U.S. shareholders are taxed on the worldwide income of the firm, regardless of whether it was earned domestically or abroad, and regardless of when it is received by the parent company in the United States.

USRegulations Tax U