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John Moffat.
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shaunak22
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foreign – 40% tax rate
Domestic -20% tax rateIf there is a bilateral treaty we do not any additional tax on the profit earned by the foreign subsided in domestic country
DOUBT- But if there is foreign country has given concession of zero tax in first two year. IN THIS CASE do we pay additional tax on the profit earned by foreign subsidiary in domestic country for the first two years?
John Moffat
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Yes. Foreign profits are taxed at the domestic tax rate. If there is a bilateral treaty, then any foreign tax suffered can be offset. If there is no foreign tax suffered then there is nothing to offset.
shaunak22
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