direct conduit company definition

direct conduit company

Arrangement to avoid paying tax twice on an income where the country in which a parent firm is located does not have a taxation treaty with the state in which its subsidiary is located. In this method, a holding company is formed in a country which has such treaties with the both countries, to serve as a pipeline for income from the subsidiary to the parent.

direct conduit company is in the Banking, Commerce & Finance and International Trade & Relations subjects.

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