How much corporate income tax will be paid

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Question: Assume a wholly-owned subsidiary in country X (tax rate = 35%) makes 500 units of a product for $200 each and sells them to the parent company in country B (tax rate = 21%) for 350 USD each.

The parent then sells them for 470 USD each in country Y. The company has no other costs or sources of revenue. Given this information:

1) How much corporate income tax will be paid in Country X?

2) If no income is repatriated from country X to country Y, how much corporate income tax will be paid in Country Y?

Reference no: EM132758473

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