TAXES AND GRASS ROOT FOUNDATIONS OF BUSINESS ISSUESWhat taxes will my company face abroad ? taxes are an area in which states fiercely retain their nations rights. A.S.companies pay taxes to the country in which the income is earned and receive tax credits in the Asia States on taxes paid abroad. Credits in the Asia states are limited by a ceiling determined by the ratio of foreign profits to total profits.
Because of differing tax rates it is often advantageous for a company to have as much income taxed abroad as possible.