\\\\table[[JS

=28%

,US income tax rate],[

=40%

,Foreign income tax rate],[

0=1.3000($)/(\\\\epsi )lon

,Spot exchange rate],[

t_(W)=10%

,Withholding Tax on interest paid to non-US creditors],[

%

,Transfer - interest rate for intracorporate loans]]\ n Germany:\ Foreign exchange gains are fully taxed Foreign exchange losses are fully tax deductible Interest paid is fully income tax deductible\ Interest earned is fully taxed\ In the US:\ Foreign exchange gains are fully taxed\ Foreign exchange losses are fully tax deductible\ Interest paid is fully income tax deductible\ Interest earned is fully taxed\ There is an income tax deductible withholding tax of

t_(w)

on interest paid outside the US.

J=28%=40%0=1.3000$/tW=10%2iT7% US income tax rate Foreign income tax rate Spot exchange rate Withholding Tax on interest paid to non-US creditors Transfer-interest rate for intracorporate loans n Germany: Foreign exchange gains are fully taxed Foreign exchange losses are fully tax deductible Interest paid is fully income tax deductible Interest earned is fully taxed In the US: Foreign exchange gains are fully taxed Foreign exchange losses are fully tax deductible Interest paid is fully income tax deductible Interest earned is fully taxed There is an income tax deductible withholding tax of tw on interest paid outside the US