As far as I know, in general, the taxes paid to a foreign country are a credit toward taxes due in the United States. This is also true for your state taxes, i.e. taxes paid in another state are a credit toward you state taxes.
If the foreign tax rate was 20% and the US rate was 35%, they'd still owe the 15% difference to bring the profits home.
8 posted on 12/26/2019 8:02:11 AM PST by Toddsterpatriot
(TANSTAAFL)
If the foreign tax rate was 20% and the US rate was 35%, they’d still owe the 15% difference to bring the profits home.
Yes that is true and clarification , but I am objecting to the term “double taxation”
9 posted on 12/26/2019 8:06:46 AM PST by PeterPrinciple
(Thinking Caps are no longer being issued but there must be a warehouse full of them somewhere.)