A credit is allowed for foreign income taxes paid or accrued. The financial lending is limited compared to that part of U.S. tax due to foreign source income. It isn't refundable, but any excess credit end up being the carried to other years to reduce tax. The Tax Reform Act of 1986 reduced finest transfer pricing rate to 28%, at the same time raising the underside rate from 11% to 15% (in fact 15% and 28% became quick cash two tax brackets). ...