Because current U.S. corporate income tax rates are higher than many foreign corporate income tax rates only infrequently will the credit's, the overall limitation yield a lower foreign tax credit than the amount of foreign taxes actually paid.

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Quizplus · Accepted Answer

This statement is true. Due to the higher U.S. corporate income tax rates, the foreign tax credit may not always fully offset the amount of foreign taxes paid, resulting in an overall limitation on the credit.

Because Current U