That's true for most countries. For the USA those tax treaties for some reason didn't work like that and double taxation of corporate profits does occur. https

That's true for most countries. For the USA those tax treaties for some reason didn't work like that and double taxation of corporate profits does occur. https://hbr.org/2012/07/a-better-way-to-tax-us-businesses https://hbr.org/2012/07/a-better-way-to-tax-us-businesses Under its current system the United States taxes the worldwide income of its citizens, including corporations. Foreign income is taxed by the source country and then taxed again by the U.S. upon repatriation Because there are credits against the double taxation, if US tax rates = the tax rate in that jurisdiction then it cancels out. But many places have different rates and then the double taxation kicks in again - they get taxed on their income once abroad, and again if they bring the money back to the USA, so they don't do it. Changing the rates is a band-aid: most countries don't do this kind of double taxation to begin with.