Worldwide Income

Worldwide income refers to the total income earned by a resident individual or company, both domestically and internationally, which forms the basis for determining income tax liability in the country of residence.

Key Features: 

Scope of Taxation Includes all income earned globally, regardless of the source country. Applies to resident individuals and resident companies.

Purpose:

Ensures that residents are taxed on their entire economic capacity, not just domestic earnings. Prevents tax avoidance through shifting income to foreign jurisdictions.

Double Taxation Relief Many countries provide mechanisms such as:

Foreign tax credits – tax paid abroad can be offset against domestic tax liability.

Tax treaties – avoid paying tax twice on the same income

Examples of Worldwide Income:

Salary earned in a foreign country

Dividends from overseas investments

Rental income from property abroad

Interest, royalties, and capital gains from foreign sources