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Exam F1 Topic 1 Question 95 Discussion

Actual exam question for CIMA's F1 exam
Question #: 95
Topic #: 1
Entity T operates within several countries, but its country of residence is Country F. In 20X5, Entity T made $8.4 million in Country M. Country M has a flat rate corporation tax of 5.9%.
Country F and Country M operate a double taxation treaty which uses a foreign tax credit system. In Country F, there is a tax of 10% tax on all foreign income.
Taking into account the credit, what is the total tax liability that Entity T owes on its Country M income, in Country F?

Suggested Answer: B Vote an answer

by Lilith at Jun 29, 2026, 03:41 AM

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