Sounds like they have to recoup everything it would cost plus making a significant profit to consider it.
Let met ask you this z, say you're engaged in business overseas. The money you make overseas will always be subject to the taxes of the locale in which it's earned. If you're in Germany you pay German taxes, in France French taxes, etc etc. You have two choices with what to do with the remaining income from those ventures.
1. You can bring it back to the US. As soon as it crosses the US border, it's subject to US income tax on top of the foreign taxes already paid, eroding the amount you have available to continue doing business.
2. You can leave it overseas where it's subject to no further taxes, leaving the maximum amount possible for use in continued business operations.
Which of those options seems smartest to you? I mean tell me, have you ever voluntarily paid more in taxes than absolutely necessary?
It's like I said, as far as countries that levy taxes on foreign income, it's us, the Phillipines and a couple of Stans in central Asia. EVERY SINGLE OTHER COUNTRY IN THE WORLD realizes how stupid it is to discourage people from bringing money back into the country.
Edited by nova, 05 September 2012 - 09:51 AM.