International Accounting and Taxation

International - International Accounting and Taxation Riad A Ajami PhD 1 Tax Treatment of Foreign Income Double Tax Foreign Tax Calculation Foreign

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
1 International Accounting and Taxation Riad A. Ajami, PhD
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Tax Treatment of Foreign Income Double Tax Deduction Credit Foreign Tax Calculation Foreign Income 100.00 100.00 100.00 Foreign Tax (30%) (30.00) (30.00) (30.00) Net Foreign Income 70.00 70.00 70.00 US Tax Calculation Taxable Income 100.00 100.00 100.00 Foreign Tax Deduction - (30.00) - Net Taxable Income 100.00 70.00 100.00 US Tax (35%) (35.00) (24.50) (35.00) Foreign Tax Credit - - 30.00 Net Income 35.00 45.50 65.00
Background image of page 2
3 International Taxation Tax Haven Countries – 4 Types Foreign Sales Corporation (FSC) Foreign Branch Controlled Foreign Corporation (CFC)
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 Parent Company in the United States Grandchild Subsidiary Grandchild Subsidiary Tax-Haven Subsidiary Grandchild Subsidiary A Tax-Haven Subsidiary as a Holding Company
Background image of page 4
5 Tax Haven Mobil Exxon USA Mobil Exxon International (Tax Haven) Mobil Exxon Venezuela Mobil Exxon Turkey Mobil Exxon …… Mobil Exxon …… Esso France
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6 International Taxation Active Income Passive Income Transfer Pricing Unitary Taxation Value-Added Tax (VAT)
Background image of page 6
7 Deferral for Different Legal Forms The three forms of foreign organization have different rules relating to the deferral principle U.S. Shareholder Parent Corporation CFC Foreign Corporation (non CFC) Branch
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
8 Tax Status of Active and Subpart F Income from Foreign Subsidiaries
Background image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/24/2010 for the course MBA 720 taught by Professor Ajami during the Summer '09 term at Wright State.

Page1 / 21

International - International Accounting and Taxation Riad A Ajami PhD 1 Tax Treatment of Foreign Income Double Tax Foreign Tax Calculation Foreign

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online