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S headquartered in st paul mn in the form of dividend

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Unformatted text preview: Last year (2011) 3M Germany earned 400,000,000 USD and 3M China 600,000,000 USD (both figures are pretax earnings). Suppose these two subsidiaries paid out all after ­tax earnings back to the parent company, 3M U.S., headquartered in St. Paul, MN, in the form of dividend. Please use the tax rates below for calculations: U.S. corporate tax rate: 35% German corporate tax rate: 40% German dividend withholding tax: 0% Chinese corporate tax rate: 25% Chinese dividend withholding tax: 10% 1. How much corporate tax did 3M Germany pay to the German government? 2. How much corporate tax did 3M Germany pay to the U.S. government? 3. How much tax did 3M U.S. pay to the Ge...
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