W9_Assignment 8
ParCo (DDD-country based company) has 3 branches in different countries: AAA, BBB and CCC.
The branches generated incomes of DDD currency (DC) DC100,000; DC200,000 and DC300,000
respectively.
DDD-country income tax rate is 35%.
Income tax rates for the countries are listed below:
Required:
Country
Income tax rate
AAA
BBB
CCC
50%
40%
30%
For ParCo compute the following:
1) DDD's income tax before FTC;
2) Foreign income taxes paid;
3) Foreign tax credit (FTC) allowed;
4) Net DDD-country tax liability before excess FTC;
5) Excess foreign tax credit.
