With a territorial model of taxation, a foreign tax credit is needed toensure that the income is not taxed twice.

Name: With a territorial model of taxation, a foreign tax credit is needed toensure that the income is not taxed twice.
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Quizplus · Accepted Answer

In a territorial tax system, only domestic income is taxed, and foreign income is generally exempt, so there is no need for a foreign tax credit to prevent double taxation on foreign income.

With a Territorial Model of Taxation, a Foreign Tax Credit