International — Taxation

: Some countries use a territorial system , exempting certain foreign-source income from domestic tax entirely. Transfer Pricing :

: Countries tax income generated within their borders , regardless of the taxpayer's residence. Mitigating Double Taxation :

: Countries tax their residents on worldwide income , regardless of where it is earned. INTERNATIONAL TAXATION

: Designed to prevent taxpayers from deferring tax on mobile income by shifting it to foreign "controlled" corporations.

International taxation involves the rules and principles governing how income, profits, and taxable activities are taxed when they cross national borders. The primary goal is to allocate taxing rights between countries fairly while preventing double taxation. Taxing Rights & Jurisdiction : : Some countries use a territorial system ,

OECD Model Tax Convention : Favors capital-exporting (developed) countries.

: Allow taxpayers to reduce their domestic tax liability by the amount of taxes paid to a foreign government. : Designed to prevent taxpayers from deferring tax

: Bilateral agreements that determine which country has the primary right to tax specific types of income (e.g., dividends, interest, royalties).