Question
Trident Solar Technologies (TST) is the wholly-owned Taiwanese subsidiary of United Renewable Energy (URE) Inc., a U.S. firm. Last year, TST had $3,000,000 of taxable
Trident Solar Technologies (TST) is the wholly-owned Taiwanese subsidiary of United Renewable Energy (URE) Inc., a U.S. firm. Last year, TST had $3,000,000 of taxable income and remitted 100% of the after-tax income to URE as dividends.
The corporate tax rate in Taiwan was 25%, and the foreign withholding tax rate on dividends was 10%. The corporate tax rate for the parent company in the U.S. was 30%. Calculate the tax liability and the excess foreign tax credit for URE, the U.S. parent company.
| The U.S. parent had no tax liability to the U.S. government, it was entitled to $25,000 excess foreign tax credit | ||
| The U.S. parent had a tax liability of $75,000 to the U.S. government, it was not entitled to excess foreign tax credit | ||
| The U.S. parent had a tax liability of $50,000 to the U.S. government, it was not entitled to excess foreign tax credit | ||
| The U.S. parent had no tax liability to the U.S. government, it was entitled to $100,000 excess foreign tax credit | ||
| The U.S. parent had no tax liability to the U.S. government, it was entitled to $75,000 excess foreign tax credit |
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Supernatural Provision Living In Financial Freedom
Authors: Joan Hunter, Sid Roth
1st Edition
1641238232, 978-1641238236
