Because current U.S.corporate income tax rates are higher than many foreign corporate income tax rates, the overall limitation does not yield a lower foreign tax credit than the amount of foreign taxes actually paid.

Question

Quizplus · Accepted Answer

The statement is true. Since U.S. corporate income tax rates are higher than many foreign corporate income tax rates, the overall limitation on the foreign tax credit does not typically result in a lower foreign tax credit than the amount of foreign taxes actually paid. This means that U.S. businesses generally do not face double taxation on their foreign income.

Because Current U