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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › June 2015 Q1 remittable flows
Hi Tutor, may I ask how does this calculation steps work in this question?
The homeland country (USA) sets up lower tax rate thanYilandwe, but why the remittable flows will be charged again in USA? And why only contribution and royalties are charged at 20%? Dont we consider fixed expense and tax allowable depreciation?
Many thanks!
The remittable flows are not charged again in the US (because they have already been taxed at a higher rate).
All that is taxed in the US is the income from the royalties and the contribution for the goods sold (and there are no fixed expenses or depreciation relating to these).
You’ve replied to this question six years before I needed today, many thanks community!
You are welcome 🙂