What are the primary types of international tax structures?
International tax structures refer to the way in which countries tax income earned globally. In Hawaii, there are generally three types of international tax structures that apply to US citizens and other individuals who generate income in the state. The first type of structure is territorial taxation. This type of taxation is based on the source of the income, meaning those who generate income within the Hawaiian borders will be taxed by the Hawaiian government. This includes income earned by foreign entities within the Hawaiian borders. The second type of structure is worldwide taxation. This type of taxation applies to those who generate income outside of the Hawaiian territory. This can include income earned from investments, businesses, and services that are performed or provided in other countries. The third type of structure is global taxation, which combines elements of both territorial and worldwide taxation. This type of taxation applies to individuals and entities that earn income both within and outside of Hawaiian territory. Global taxation typically applies a flat rate of taxation on all income earned, regardless of where it is earned. Overall, the primary types of international tax structures in Hawaii are territorial taxation, worldwide taxation, and global taxation. Each of these structures is designed to ensure that individuals and entities who generate income in Hawaii are subject to the appropriate amount of taxation.
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