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Business, 18.12.2019 17:31 kevinmarroquin6

Firm dfg plans to open a foreign subsidiary through which to sell its manufactured goods in the european market. it must decide between locating the subsidiary in country x or country z. if the subsidiary operates in country x, its gross receipts from sales will be subject to a 3 percent gross receipts tax. if the subsidiary operates in country z, its net profits will be subject to a 42 percent income tax. however, country z's tax law has a special provision to attract foreign investors: no foreign subsidiary is subject to the income tax for the first three years of operations.

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