International Taxation

International Taxation – International taxation encompasses the set of rules, principles, and laws that govern how countries tax cross-border transactions, income, and assets. It addresses situations where individuals or corporations earn income or hold assets in multiple countries, ensuring clarity on tax obligations and avoiding conflicts between jurisdictions. Key Points: Determines which country has the primary right to tax specific income or assets. Addresses issues such as double taxation, transfer pricing, and taxation of foreign subsidiaries. Facilitated by tax treaties (Double Taxation Avoidance Agreements, DTAA) to prevent the same income from being taxed in more than one country. Promotes cooperation and information exchange between tax authorities globally.

Example: A company based in India sells products in Germany. International taxation rules and the India-Germany DTAA help determine how much tax is payable in each country and avoid double taxation on the same profits