What are the specific methods for avoiding taxation of international profits?

When dealing with international profits, there are several methods that companies can use to avoid taxation. Companies may use the deferral of income method, which allows them to delay their reporting and payment of taxes until the money is brought back into the United States. Companies may also use the foreign tax credit, which excludes a portion of international income from taxation, or the foreign tax deduction, which allows companies to deduct the foreign taxes they’ve already paid. Additionally, companies may use a foreign-based subsidiary or parent company to conduct business outside of the United States, which allows them to move profits to a lower-taxed jurisdiction. Companies may also use tax havens and special economic zones to gain tax advantages. By investing in those locations, companies are able to take advantage of lower corporate tax rates, real estate tax benefits, and other benefits. Finally, companies may also use transfer pricing, where they move funds or assets between companies or countries to take advantage of lower tax rates. In conclusion, businesses can utilize various methods to avoid taxation of international profits, such as deferral of income, foreign tax credits, foreign tax deductions, foreign-based subsidiaries, tax havens, and special economic zones, as well as transfer pricing. However, it is important to note that each of these methods will be subject to the laws of Washington, so companies must be aware of any applicable regulations.

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What are the specific methods for avoiding taxation of international profits?

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