Difference between worldwide and territorial tax policies

Reference no: EM131015540

Please define and Explain the difference between Worldwide and Territorial tax policies. (B) Please define and explain current US tax policy relative to overseas profit. (C) Assume Company A has two foreign subsidiaries, X and Y. Company A has a 30% domestic tax rate. The current year probability for the two subsidiaries is as follows:

	X	Y
Pre tax profit	2000	1500
Taxes	-900	-300
Net income	1100	1200

Assume Company A dividends all current year Net Income from the two subsidiaries. Please calculate what US taxes are due or what Express Foreign Tax credits are generated by such a dividend policy

Reference no: EM131015540

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