Mixer Company Law and Legal Definition

Mixer Company is the term used to designate an intermediate holding company. The purpose of which is generally to "mix" income from various foreign sources in order to maximize the benefit of foreign tax credits. The mixer company receives income both from countries with a higher tax rate than that of the destination country and from countries with a lower tax rate, which it then pays out as a dividend. This structure has the effect of averaging out the rate of foreign tax paid.