Tax-haven subsidiaries are typically established in a country that can meet the following requirements:
A) a low tax on foreign investment or sales income earned by resident corporations and a low dividend withholding tax on dividends paid to the parent firm.
B) the facilities to support financial services, for example, good communications, professional qualified office workers, and reputable banking services.
C) a stable government that encourages the establishment of foreign-owned financial and service facilities within its borders.
D) all of the above

Question

Quizplus · Accepted Answer

Tax-haven subsidiaries require a low tax on foreign investment or sales income earned by resident corporations and a low dividend withholding tax on dividends paid to the parent firm. Additionally, they need facilities to support financial services, such as good communications, professional qualified office workers, and reputable banking services. A stable government that encourages the establishment of foreign-owned financial and service facilities within its borders is also necessary. Therefore, all of the above requirements must be met to establish a tax-haven subsidiary.

Tax-Haven Subsidiaries Are Typically Established in a Country That Can