<blockquote>
<p>repatriate <br>
/riːˈpatrɪeɪt,riːˈpeɪeɪt/
<br>
verb <br>
send (someone [or something]) back to their own country.</p>
</blockquote>
<hr />
<blockquote>
<p>Is it what fraction of company 2's production that ends up at company 1</p>
</blockquote>
<p>I would say profits instead of production, but otherwise yes.</p>
<hr />
<p><strong>Example</strong> (all numbers are made up)</p>
<p>Say Microsoft (MS) has to pay 20% tax in the US and 10% in Ireland. MS Ireland makes \$1 billion in pofits and transfers 40% of this back to the US parent company. In this case <span class="math-container">$f = 40\%$</span>, and MS payed
<span class="math-container">$$
60\% \cdot 10\% + 40\% \cdot 20\% = 14\%
$$</span>
of its Irish profits in taxes in <em>some</em> country, this is the effective rate at which it was taxed.</p>

CC BY-SA 4.0
2022-02-10T19:07:31.023Z
2022-02-10T19:07:31.023Z
Giskard
<p><a href="https://i.sstatic.net/0YFgA.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/0YFgA.png" alt="enter image description here" /></a></p>
<p>Hi, I am writing a thesis on transfer pricing and I am trying to figure out the meaning of what is written in this image. Company 1 is exporting some of its production to its affiliate company 2. So what does repatriated in this case mean? Is it what fraction of company 2's production that ends up at company 1 or is the effective tax what it saves or what is it? English is not my first language, so I am a bit stuck.</p>

<taxation>
Meaning of the word "repatriated" in this model
Olav3D
# Meaning of the word "repatriated" in this model

(Asked by: username_0 on 2022-02-10)

[![enter image description here](https://i.sstatic.net/0YFgA.png)](https://i.sstatic.net/0YFgA.png)

Hi, I am writing a thesis on transfer pricing and I am trying to figure out the meaning of what is written in this image. Company 1 is exporting some of its production to its affiliate company 2. So what does repatriated in this case mean? Is it what fraction of company 2's production that ends up at company 1 or is the effective tax what it saves or what is it? English is not my first language, so I am a bit stuck.

**Tags:** taxation

---

## 1 answers

### Answer by username_1 on 2022-02-10. Score: 4

> repatriate   
> /riːˈpatrɪeɪt,riːˈpeɪeɪt/
>   
> verb   
> send (someone [or something]) back to their own country.

---

> Is it what fraction of company 2's production that ends up at company 1

I would say profits instead of production, but otherwise yes.

---

**Example** (all numbers are made up)

Say Microsoft (MS) has to pay 20% tax in the US and 10% in Ireland. MS Ireland makes \$1 billion in pofits and transfers 40% of this back to the US parent company. In this case $f = 40\%$, and MS payed
$$
60\% \cdot 10\% + 40\% \cdot 20\% = 14\%
$$
of its Irish profits in taxes in *some* country, this is the effective rate at which it was taxed.


---

