What are the primary types of international tax structures?

International tax structures refer to the methods and systems used to assess the taxes that entities from different countries must pay. In Utah, three primary types of international tax structures are frequently used: residence-based taxation, source-based taxation, and territorial taxation. Under residence-based taxation, any entity operating or earning income within the country will be subject to taxation, regardless of where the majority of the entity’s operations occur. In other words, income sourced from other countries is also subject to taxation. Source-based taxation involves taxing income earned from activities that occur within the country, regardless of the entity’s residence. This type of taxation is frequently used for income earned from investments, real estate, and sales. Territorial taxation focuses on taxation of income earned within the country’s territory. This type of tax structure is typically used for companies selling goods or services, or to assess taxes on the profits generated from investments. In summary, the three primary types of international tax structures used in Utah are residence-based taxation, source-based taxation, and territorial taxation. Each of these structures has its own set of benefits and limitations, and the appropriate one should be chosen based upon the specific economic activities and entities involved.

Related FAQs

How does taxation of foreign investments work?
What is the taxation of foreign exchange gains?
What are the different forms of tax avoidance?
What is International Tax Law?
How do the OECD's model tax conventions affect international taxation?
How can multinationals protect themselves from double taxation?
How does taxation of international profits work?
What are the different forms of taxation for capital gains?
How do governments tax the income of non-residents?
What is the taxation of intra-group transactions?

Related Blog Posts

An Overview of International Tax Law: What You Need to Know - July 31, 2023
Key Principles of International Tax Law - August 7, 2023
Learn About the Basics of Cross-Border Tax Cooperation - August 14, 2023
Understanding the Double Taxation Principle and How It Affects Businesses - August 21, 2023
A Guide to International Tax Planning Strategies - August 28, 2023