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Tax Liability: Deduction Method

November 6, 2017

The residence country allows taxpayers to reduce their taxable income by the amount of taxes paid to foreign governments in respect of foreign-source income.

Tdeductionmethod = Tresidence + Tsource – (TresidenceTsource)

OR

Tdeductionmethod = Tresidence + Tsource(1 – Tresidence)

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