"Foreign subsidiaries" refers to companies that are owned or controlled by a parent company located in a different country. These subsidiaries are separate entities but operate under the authority and ownership of the parent company. Full definition
The Treasury Department and the Internal Revenue Service have provided additional guidance (Notice 2018 - 26) for computing the «transition tax» on the untaxed foreign earnings of foreign subsidiaries of U.S. companies under the Tax Cuts and Jobs Act enacted on Dec. 22, 2017. (cpapracticeadvisor.com)
Passage of the bill would revise the federal income tax system by: lowering individual and corporate tax rates; consolidating the current seven tax income rates into four rates; eliminating the deduction for state and local income taxes; limiting certain deductions for property taxes and home mortgages; and creating a new system of taxing U.S. corporations with foreign subsidiaries. (seedsofdemocracy.org)
EU anti-discrimination rules were used to over-rule the UK's tax treatment of dividends paid by foreign subsidiaries of UK companies, for instance. (lawyer-monthly.com)