Under U.S. tax law, a multinational corporation may use any excess tax credits generated in high-tax foreign countries to offset its net U.S. tax liabilities on earnings in low-tax foreign countries.

Question

Quizplus · Accepted Answer

This is true. The excess tax credits generated in high-tax foreign countries can be used to offset the net U.S. tax liabilities on earnings in low-tax foreign countries due to the foreign tax credit system in U.S. tax law.

Under US Tax Law, a Multinational Corporation May Use Any Excess