What is the scope of international taxation?

International taxation is the body of laws and regulations that exists to govern the taxation of income generated and transactions conducted across international borders. This includes both the taxation of business activities such as exports, imports, and investments, as well as personal taxes such as those for expats, foreign employees, and those who receive income from foreign sources. In Washington, the scope of international taxation is determined by federal, state, and local tax regulations, as well as those dictated by treaty partners and other foreign laws. At its most basic, international taxation deals with the taxation of income and transactions generated by people, businesses, and other entities that exist or operate across international boundaries. This includes individuals who receive income from abroad, such as expats who work overseas and foreign employees. It also includes businesses who earn profits from international sales and investments, such as companies that export goods or services to other countries. More broadly, international taxation also includes the taxation of intra-company transactions. This includes transactions between different offices and departments of a single business, as well as transactions between different entities that are part of the same organization. In addition, international taxation covers the taxation of cross-border transactions, such as foreign mergers, acquisitions, and investments. Finally, international taxation also extends to the taxation of international transactions related to capital, such as portfolio investments, capital gains and losses, and currency exchange transactions. Internationally, many countries have entered into bilateral and multilateral tax treaties that provide guidance on the taxation of cross-border transactions and other financial activities, such as the taxation of overseas income and profits.

Related FAQs

What is the OECD's Model Tax Convention?
How can countries protect their tax base from aggressive international tax planning?
What are the primary types of international tax structures?
What is the taxation of foreign inheritances?
What are the rules for taxing employees who work abroad?
What are the tax implications of doing business in a foreign country?
How is taxation of foreign services different from taxation of goods?
What impact does the EU have on International Tax Law?
How are the tax rules for intellectual property (IP) different from other forms of international taxation?
How do governments apply double tax treaties?

What is the scope of international taxation?

Related FAQs

Related Blog Posts