2021 International Slides 12.09.2021 - FINAL | Page 6

Foreign Tax Credit Example

Simplified calculation for illustrative purposes only
Country A
Country B
Total
Pretax Income
100
100
200
Tax Rate
30 %
10 %
Tax
30
10
40
Limitation US Inclusion
100
100
200
Limitation
21 %
21 %
21 %
FTC Limitation
21
21
42
FTC Available
30
10
40
FTC
21
10
40
Limitation assumes corporate tax rate
Country by Country 31 Blended 40
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