International Taxation Apr 2026

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

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

: An OECD-led initiative to close gaps in international tax rules that allow multinational enterprises to artificially shift profits to low or no-tax locations. International business | Internal Revenue Service : Some countries use a territorial system ,

: Allow taxpayers to reduce their domestic tax liability by the amount of taxes paid to a foreign government. International business | Internal Revenue Service : Allow

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

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 :

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