The summary below compares the taxation of a subsidiary corporation to that of a branch. The financial period for both entities is assumed to be 1 January 1993 to 31 December 1993. Net income after taxes is assumed to be distributed on 1 March 1994.

                                                          Parent Does
                        Subsidiary   Parent Receives      Not Receive
                        Branch       Imputation Credit*   Imputation 
                                                           Credit
                               FIM          FIM               FIM

Income before taxes         100.00       100.00            100.00

Tax at 25%                (  25.00)    (  25.00)         (  25.00)

Net income after taxes       75.00        75.00             75.00

Imputation credit, if 
applicable, 5/16 x 1/3 x 
cash dividend                    -         7.81                 -

                             75.00        82.81             75.00

5% withholding tax               -      (  4.14)          (  3.75)

Received by parent company   75.00        78.67             71.25


                                                          
*    An imputation credit is available to a parent company resident in the United  Kingdom based on the double tax treaty between Finland and the United  Kingdom, as amended.



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