How do international tax regimes differ from national tax regimes?

International tax regimes refer to the taxation policies of different countries or regions, whereas national tax regimes are the taxation policies set by governments within a single country. National tax regimes usually involve taxes that apply to their citizens and corporations within their borders, whereas international tax regimes are much more complex and involve tax treaties between countries and regions. For instance, the US has Double Taxation Agreements, or DTAs, with many countries all over the world. These agreements provide exemptions from paying taxes twice on the same income. The DTAs are negotiated by government officials of both countries, and they dictate how income earned in one jurisdiction is taxed in the other. In some instances, this income may not be taxable in either jurisdiction, though that is not as common. International tax regimes also often involve Transfer Pricing Agreements, or TPAs. These are rules used to govern multinational companies and their partnerships. For example, the agreements may specify that profits earned by a foreign subsidiary in one jurisdiction should be transferred to the parent company in another jurisdiction. The rules of TPAs may specify that no taxes be paid on the transfer, or that the profits should be taxed using a specific rate. In general, international tax regimes are much more complex than national tax regimes because they involve several different countries, jurisdictions, and agreements. National tax regimes are simpler, as they only involve taxation within a single country.

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How do international tax regimes differ from national tax regimes?

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