What are the tax implications of owning a foreign corporation? How?

Foreign subsidiaries of US corporations are not subject to US federal income taxes. ?Any profits that are paid by the foreign subsidiary is taxable in the US. (This potential double taxation prevents companies with successful foreign ventures from bringing the money back to the US and investing here). Several US states tax the worldwide income of any business (well, any taxable business, 1/3rd of American economy are tax exempt, so-called "non-profits").