npv

This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
April 4, 2022 at 10:06 am #652685
shaunak22
Participant
- Topics: 220
- Replies: 41
foreign – 40% tax rate
Domestic -20% tax rate
If 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?
April 4, 2022 at 12:23 pm #652694
John Moffat
Keymaster
- Topics: 57
- Replies: 54845
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.
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.