Worldwide Tax Rate Calculator

Worldwide Tax Rate Calculator - $1,250,000 US TAX ON...

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CALCULATION OF WORLD-WIDE TAX RATE FOREIGN INCOME TAXES Income Before Payments to Parent $50,000,000 Interest Payments to Parent 0 Royalty Payments to Parent 0 Taxable Income $50,000,000 X Tax Rate 20% Foreign Tax $10,000,000 FOREIGN WITHHOLDING TAXES ON REPATRIATED EARNINGS Withholding on Interest Payments $0 Withholding on Royalty Payments 0 Foreign Earnings less taxes 40,000,000 Percentage Repatriated 63% Dividend Distribution $25,000,000 X Foreign Withholding Rate 5% Withholding on Dividends $1,250,000 Foreign Withholding Tax
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Unformatted text preview: $1,250,000 US TAX ON REPATRIATED EARNINGS Interest Income $0 Royalty Income 0 Dividend from Subsidary 25,000,000 Sec. 78 Gross-up 6,250,000 Taxable Foreign Income $31,250,000 X U.S. Tax Rate 35% Pre-credit U.S. Tax $10,937,500 Foreign Tax Credit $7,500,000 Foreign Withholding Taxes $1,250,000 Deemed paid taxes 6,250,000 Creditable foreign taxes $7,500,000 General limitation $10,937,500 U.S. Income Tax $3,437,500 TOTAL TAXES $14,687,500 WORLD-WIDE TAX RATE 29.4%...
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This note was uploaded on 09/16/2011 for the course TAX 6527 taught by Professor Andrewjudd during the Spring '11 term at University of Central Florida.

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