Deferral and Exemption of the Income of Foreign Subsidiaries: A Review of the Basic Analytics
11 Pages Posted: 4 Feb 2014 Last revised: 20 Jun 2014
Date Written: February 3, 2014
Current proposals to replace the U.S. foreign tax credit with an exemption for the income of foreign subsidiaries of U.S. companies make timely a review of the basic analytics of taxation under the two systems. This brief note reviews the key relationships, highlighting some that are not always fully appreciated in policy discussions.
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