What are the primary types of international tax structures?

International tax structures refer to the systems used by different countries to manage and collect taxes from companies and individuals who operate outside their home country. In South Carolina, the primary types of international tax structures include territorial taxation, source taxation, and residence-based taxation. Territorial taxation is the simplest of the three types of international tax structures. In this system, foreign businesses are only taxed on income that is earned in the same country. This means that foreign companies are only liable for taxes in the country that they are doing business. For example, if a company has operations in South Carolina, only its income earned in South Carolina is subject to South Carolina taxes. Source taxation is a system in which foreign companies are taxed based on the source of their income. Under this system, foreign companies may be taxed not only for their income earned in the country, but also for income earned outside the country. For example, a company may be subject to both South Carolina taxes and the taxes of the country where its income originated. Residence-based taxation is a system in which the country of residence of the company determines which taxes it is liable for. For example, if a company is based in South Carolina but has operations located in other countries, it would be subject to South Carolina taxes. However, the company may be subject to taxes from the other countries as well. Overall, the primary international tax structures are territorial taxation, source taxation, and residence-based taxation. Each of these systems can vary from country to country, so it is important to be aware of the specific requirements for the country in which the company is operating.

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What are the primary types of international tax structures?

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