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CIMA Exam CIMAPRA19-F03-1 Topic 1 Question 92 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam
Question #: 92
Topic #: 1
[All CIMAPRA19-F03-1 Questions]

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

The corporate tax rate in country T is 20% and 25% tax depreciation allowances are available

Which TIIRCC of the following would be considered advantages of establishing a subsidiary in country T?

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Suggested Answer: A, B, E

by Kathrine at Jul 16, 2024, 03:02 PM

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Alida
3 days ago
I disagree. The double tax treaty between country T and country P (option D) seems like the better choice. That would help avoid double taxation.
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Salley
10 days ago
I think option C is the correct answer. The year 1 tax depreciation allowances of 100% in country P would be a significant advantage for establishing a subsidiary there.
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Carlota
15 days ago
But what about the restrictions on remitting profit from country P? That could be a drawback.
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Kati
16 days ago
I agree, the lower corporate tax rate in country P is definitely a plus.
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Nickolas
17 days ago
I think establishing a subsidiary in country P could be advantageous.
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