What are the primary types of international tax structures?

International tax structures refer to the different methods of taxation used by countries or organizations operating internationally. Generally speaking, there are three primary types of international tax structures: territorial, residence, and source-based taxation. Territorial taxation is based on the principle that a country should only tax income that is earned within its own territory. This form of taxation grants tax exclusions for income earned outside the country. Residence-based taxation is used in countries that tax income regardless of the source. This means that the country of residence taxes all of the income earned by the individual, regardless of where it was earned. Finally, source-based taxation is used in countries that tax income based on the country in which it was earned. In this type of taxation, a portion of income earned outside of the country of residence will be subject to taxation. Generally, this form of taxation applies to non-resident aliens. The type of taxation used by a given country or organization will depend on the governing laws applicable in that jurisdiction. It is important to consult a tax specialist or an international tax attorney to understand the specific taxation rules applicable to a particular situation.

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What are the primary types of international tax structures?

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