A U.S.parent corporation that receives a dividend from a wholly-owned foreign subsidiary that pays a 45% income tax to its home country does not owe any U.S.tax on the dividend.

Question

Quizplus · Accepted Answer

The dividend received deduction allows a U.S. parent corporation to exclude from its taxable income dividends received from a wholly-owned foreign subsidiary.

A USParent Corporation That Receives a Dividend from a Wholly-Owned Foreign