FORco wants to open a sales office in the United States. Because FORco does not...
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Accounting
FORco wants to open a sales office in the United States. Because FORco does not want to be subject to any withholding tax on dividends, FORco does not form a U.S. subsidiary, but instead operates in the U.S. as a branch. If the U.S. sales office is profitable and distributes cash, FORco may be subject to:
(a) the withholding tax on dividends only.
(b) the branch profits tax only.
(c) both the withholding tax on dividends and the branch profits tax.
(d) transfer pricing penalties.
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