A foreign affiliate that is legally a part of the parent firm. According to the U.S. tax code, foreign branch income is taxed as it is earned in the foreign country.
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Controlled foreign corporation (CFC)
Controlled foreign corporation (CFC) A foreign corporation whose voting stock is more than 50% owned by US stockholders, each of whom owns at least 10% of the voting power.
Foreign banking market
Foreign banking market That portion of domestic bank loans supplied to foreigners for use abroad.
Foreign base company income
Foreign base company income A category of Subpart F income that includes foreign holding company income and foreign base company sales and service income.