When an American company earns profits in a foreign country, those profits are taxed according to the tax laws of the United States.

Name: When an American company earns profits in a foreign country, those profits are taxed according to the tax laws of the United States.
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Quizplus · Accepted Answer

Profits earned by an American company in a foreign country are typically subject to the tax laws of that foreign country, and the U.S. may tax them when they are repatriated, with possible credits for foreign taxes paid.

When an American Company Earns Profits in a Foreign Country