CIMA Exam CIMAPRA19-F01-1 Topic 3 Question 59 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 59
Topic #: 3

What does the tax credit method of giving double taxation relief mean?

ATax paid in one country may be allowed as a tax credit in another country. Relief is normally restricted to the lower of the foreign or country of residency tax.

BTax paid in one country may be allowed as a tax credit in another country. Relief is normally restricted to the higher of the foreign or country of residency tax.

CTax relief is gained by deducting the foreign tax from the foreign income so that only the 'net' amount will be subject to tax in the country of residency.

DThe countries agree on certain types of income which will be exempt or partially exempt in one country or the other.

Show Suggested Answer

Suggested Answer: A

by Alex at Oct 14, 2022, 11:04 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRA19-F01-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Currently there are no comments in this discussion, be the first to comment!