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What Is International Taxation?

International taxation deals with situations in which a person or a business is subject to tax laws in a country other than their own. If you spend a large amount of time in a foreign country, or your business has major business dealings in another country, you may be subject to international taxation.

Types of International Taxation

There are two main types of international taxation systems:

  • In a Territorial system, income is only taxed if it comes from a source inside the country.
  • In a Residential system, individuals in the country are taxed on all of their income, whether it comes from domestic or foreign sources. In most countries, nonresidents are only taxed on local income, however, in the United States, even nonresident citizens are taxed on income from both local and international sources.

International Taxation Attorneys

The ins and outs of international taxation systems can be quite confusing, and failure to obey a particular nations tax laws may result in financial penalties or complex legal difficulties. If you are unclear about your international taxation status, the best thing to do is contact an expert in international taxation. An international taxation attorney can help you determine how your specific situation fits into the international taxation picture.

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