How do governments assess and collect taxes on the income of non-residents?
In Tennessee, governments assess and collect taxes on the income of non-residents by using international tax law. Generally speaking, the international tax law of a country covers the tax obligations of both residents and non-residents. Specifically, it governs the taxation of certain income earned by non-residents and how much of it can be taxed. When an individual or business earns income from sources outside the country of residence, non-residents are generally subject to tax laws of the country in which the income is earned. For example, if a company in Tennessee earns income from sources outside the United States, the international tax law of the country where the income was earned determines how much of the income is subject to taxation. In addition to determining how income should be taxed, international tax laws also specify which types of income must be reported to the IRS. For example, individuals may have to file a tax return in Tennessee and other states in which they received income, and pay taxes in those jurisdictions. The reporting and payment of taxes are subject to the legal requirements of the country in which the income was earned. In order for governments to assess and collect taxes on the income of non-residents, the individuals and businesses must provide accurate and complete information about all sources of income and submit relevant forms and supporting documents to the government. All international tax laws must be followed if non-residents wish to comply with the tax laws of the country in which the income was earned.
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