The annual corporation tax rate in Gamala is 20% and Tramont Co currently pays corporation tax at a rate of 30% per year. Both countries’ corporation taxes are payable in the year that the tax liability arises. A bi-lateral tax treaty exists between the US and Gamala, which permits offset of overseas tax against any US tax liability on overseas earnings. The US and Gamalan tax authorities allow losses to be carried forward and written off against future profit for taxation purpose.
hey mike, would you please why tramont co does not pay extra 10% tax on remitted cashflows, I am confusing about this, rest of question is easy plz reply