What is the difference between an affiliate and a subsidiary?

This means the parent has some influence but not complete control. An affiliate is like a friend you work with sometimes, but they do their own thing. Your company owns some, but not most, of their company. For a subsidiary: A subsidiary is like a little company your big company owns. You almost control everything they do.

Are affiliate companies taxed differently than subsidiary companies?

Exemptions: exclude certain income from being taxed. Affiliate: An affiliate is usually taxed like the parent company. If the affiliate company loses money, the company with less ownership takes less of a hit than a subsidiary. Subsidiary Companies: A subsidiary is usually taxed separately from the parent company.

What is the difference between a parent company and an affiliate company?

Based on the level of ownership, an organization can be segmented into affiliates, subsidiaries, associates, and parent companies. When a parent company holds a 20% to 50% stake in a company, the later is called an affiliate company. For a subsidiary company, the parent holds at least 50% or higher percentage of stake.