Romesh Ltd is based in a country with a regional approach to taxation, but receives 100% of its revenue in a country with a worldwide approach to taxation. The tax rate in the country of incorporation of the company is 25%, and the tax rate in the country where they generate income is 50%. Theoretically, and with the exception of any special provisions in the tax laws of both countries, Romesh should pay tax at the rate of __--------- in the country of incorporation.

Answer rating: 100% (QA)

In the country of incorporation Romesh Ltd should pay tax at the rate of 25 ... View the full answer