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CIMA Financial Strategy F3 Question # 129 Topic 13 Discussion

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CIMA Financial Strategy F3 Question # 129 Topic 13 Discussion

F3 Exam Topic 13 Question 129 Discussion:
Question #: 129
Topic #: 13

A company is considering either exporting its product directly to customers in a foreign country or establishing a manufacturing subsidiary in that country.

The corporate tax rate in the company's own country is 20% and 25% tax depreciation allowances are available.

 

Which THREE of the following would be considered advantages of establishing the subsidiary in the foreign country?
A.

The corporate tax rate in the foreign country is 40%.

B.

There is a double tax treaty between the company's domestic country and the foreign country.

C.

Year 1 tax depreciation allowances of 100% are available in the foreign country.

D.

There are high customs duties payable on products entering the foreign country. 

E.

There are restrictions on companies wishing to remit profit from the foreign country.

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Actual exam question for CIMA F3 exam by Lumen65625 at Aug 3, 2025, 12:00:00 AM

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