Page 104 - International Taxation IRS Training Guides

How Does
ETR Planning Relate

to Tax Planning Strategy?

component of a US MNE’s
 ETR reduction is a major

tax planning strategy. ETR reduction will generally
produce beneficial financial results.

revenue, tax expense is one of
 As a percentage of

the highest
expenses incurred by an MNE (behind

Cost
of Goods Sold (“COGS”) and Selling, General
and Administrative (“SG&A”)).

19