What are the primary types of international tax structures?

International tax structures are different ways of collecting taxes between countries or between different types of entities. In New Mexico, these structures are determined according to the laws of the individual country or entity in question. Generally speaking, there are three primary types of international tax structures; direct taxes, indirect taxes, and tax treaties. Direct taxes are taxes that are levied on individuals and organizations directly by the government. This type of tax may include income taxes, corporate taxes, or estate taxes. Indirect taxes are taxes that are charged on goods and services, such as a value-added tax (VAT). Finally, tax treaties are agreements between two countries that allow the countries to determine where taxes will be collected on income earned in either country. Tax treaties may provide tax relief or special incentives for certain types of international transactions. In addition, there are other less common international tax structures that may be used. These include transfer pricing, controlled foreign companies, and offshore banking. Transfer pricing involves taxation on goods and services that are traded between two related parties. Controlled foreign companies are companies that are owned by a parent company outside of the country they operate in. Offshore banking is the practice of holding funds in banks in countries with low or zero taxes. In New Mexico, the primary types of international tax structures are determined by the laws of the country or entity in question. Different structures can provide different tax benefits, but it is important to consider the possible implications of each type of structure before utilizing it.

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What are the primary types of international tax structures?

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