Background Note | HBS Case Collection | November 2006

U.S. Taxation of Foreign-Source Corporate Income

by Henry B. Reiling

Abstract

Identifies several of the problems and policy choices associated with taxing foreign-source income. Examples are given of the practical after-tax effects of the major alternatives. Foreign tax credit and "tax haven" based business activities receive special attention. Provides an understanding of the basic problems and principles associated with U.S. taxation of foreign-source corporate income.

Keywords: Earnings Management; Credit; Policy; Taxation; Problems and Challenges; United States;

Citation:

Reiling, Henry B. "U.S. Taxation of Foreign-Source Corporate Income." Harvard Business School Background Note 207-085, November 2006.