What are the primary types of international tax structures?

International tax structures are agreements between different countries to determine how the profits of taxpayers in each country will be taxed. Generally, there are two primary types of international tax structures: territorial and global. Territorial tax structures typically allow taxpayers in one country to pay taxes on their earnings only in that country. This means that if you are a resident of Tennessee, you would be taxed only on your income earned in Tennessee and the U.S., and not on foreign income. This type of structure is beneficial for businesses that generate profits from operations in multiple countries. On the other hand, global tax structures require taxpayers to pay taxes on their worldwide income, regardless of where it is earned. This means that taxpayers must report and be taxed on their foreign earnings in their home country. This type of structure is beneficial for governments to prevent international tax avoidance. Overall, the primary types of international tax structures are the territorial and global structures. Although the territorial structure is beneficial for businesses that generate profits from operations in multiple countries, the global structure is beneficial for governments to prevent international tax avoidance.

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What are the primary types of international tax structures?

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