Branch Profits Tax

Branch Profits Tax

About Branch Profits Tax:

A BPT is a tax of 30% of the dividend equivalent amount, imposed on foreign companies doing business in the United States. The dividend equivalent amount is the foreign corporation's effectively connected earnings and profits for the tax year, subject to certain adjustments for increases and decreases in net equity. Effectively connected earnings and profits are the earnings and profits (or the deficit) attributable to income that is effectively connected with the conduct of a trade or business in the United States. Former IRC (check if this IRC provision is current here) §312; Former Temporary Regulation (check here if this Temp. Reg. is current) §§1.884-lT(b)(2) and 1.884-2T.

See also other Tax Terms and Definitions in U.S.A.

effectively connected income.

U.S. and other Developed Countries International Tax Meaning

See: Branch tax.

See Dividend in the American Legal Encyclopedia and Dividend in the World Legal Encyclopedia.


Posted

in

by

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *