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    Emily237's Avatar
    Emily237 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Feb 17, 2010, 05:10 PM
    Can a US S Corp get a tax credit for a 10% reduction of royalty inc for Italian tax?
    US S Corp gets royalty income from Italy. Per agreement with Italian company, invoice shows total income, "less 10% withholding tax". The US corp does not pay the tax to Italian tax authorities. The Italian corp pays any tax due Italy (presumably). Since the US corp doesn't actually pay the tax, I think they don't get any tax credit. I would like to be sure. Thanks!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Apr 21, 2010, 02:38 PM
    This is a rather complex corporate tax question, one that generally exceeds the sophistication and expertise level for this forum. I suspect that is the reason no one ventured to answer the question.
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