Taxes

Captive bank

A captive bank is a fully owned subsidiary of a multinational corporation that offers banking services to the parent company and its affiliated entities. These banks are typically established in countries with favorable tax laws and minimal restrictions on foreign exchange. This allows the parent company to take advantage of lower capital requirements and unrestricted financial transactions. In other words, a captive bank serves as a strategic financial tool for multinational corporations to optimize their operations and maximize profits.

Related terms

Foreign-source income

Understand the meaning and definition of Foreign-source income in the context of stock market, trading, and investments.

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Loss relief

Understand the meaning and definition of Loss relief in the context of stock market, trading, and investments.

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Compensating adjustment

Understand the meaning and definition of Compensating adjustment in the context of stock market, trading, and investments.

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Stock exchange turnover tax

Understand the meaning and definition of Stock exchange turnover tax in the context of stock market, trading, and investments.

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Consolidated tax return

Understand the meaning and definition of Consolidated tax return in the context of stock market, trading, and investments.

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