Double taxation arises when the resident country and source country exercise the right to tax the same income. Double tax relief is to be dealt with the resident state always. Double taxation is a central problem of international taxation. Let us take an example to understand the impact of Double taxation. Henry, a resident of the … Continue reading What is Double Taxation?
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Concept of Residence vs. Concept of Source
Since the 20th century the increased cross border trade and investments has led to flow of man, money and machines between countries. Cross border transactions resulted in to income streams from various countries and with that the dilemma which country should tax the income. To benefit their exchequer, many countries started with aggressive income tax, … Continue reading Concept of Residence vs. Concept of Source
Everything about Transfer Pricing
Transfer pricing is the general term for the pricing of cross-border, intra-firm transactions between related parties. It refers to setting of prices for transactions between associated enterprises involving the transfer of property or services. These transactions are also called 'Controlled Transactions'. ‘Controlled Transactions’ are different from ‘Uncontrolled Transactions’. ‘Uncontrolled transactions’ are the transactions involving the … Continue reading Everything about Transfer Pricing