Payments made by the buyer before title passes to him must be considered as rental or interest income of the seller. These are most problematic when the country in which the MNC has its home base taxes profits of foreign branches on an accrual basis even when such profits are not transferred to the home country. Additionally, the valuation of the assets of a branch and capital gain due to exchange rate fluctuations present difficulties. There is no widely used practice for these problems, though most tax laws have some rules for income recognition. For cash assets and liabilities this, of course, creates no problems.
Problems arise for non-monetary assets.
X inflation adjustment. This ensures that there is no increase in net worth from one year to the next purely due to inflation. The next problem is the problem of triple taxation of dividends . While the personal income tax leads to double taxation of saving. Dividend if income, if saved, is subject to the same double taxation under the personal income tax as any other income.