What are the Key Components of International Taxation?
Several key components define the landscape of international taxation:
Tax Residency: Determines where a business is considered a resident for tax purposes. Permanent Establishment (PE): Refers to a fixed place of business through which a company's business is wholly or partly carried out. Transfer Pricing: Regulations governing transactions between related entities based in different countries to ensure fair pricing and allocation of income. Double Taxation Agreements (DTAs): Treaties between countries to prevent the same income from being taxed twice. Tax Havens: Jurisdictions with low or zero tax rates attracting businesses seeking to minimize their tax burdens.