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The Foreign Taxes That an MNC Can Usually Use as Credits

Question 8

Multiple Choice

The foreign taxes that an MNC can usually use as credits against its domestic income taxes include:


A) all foreign taxes paid by the MNC or its subsidiaries.
B) only those taxes that the MNC pays directly.
C) foreign corporate income taxes and foreign withholding taxes.
D) only those taxes that are paid to countries approved by the home country of the MNC.

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