Tag Archives | Domestic Tax Systems

Source of Income of a Country

In this article we will discuss about the source of income of a country:- 1. Connecting Factors for the Tax Objects 2. Basic Source Rules 3. Taxing Source Rules 4. Conflicts in Source Rules. Connecting Factors for the Tax Objects: The connecting factors for the tax objects are the source rules. The source rules identify: […]

Advance Tax Rulings: Meaning and Country Examples

In this article we will discuss about the advance tax rulings: 1. Meaning of Advance Tax Rulings 2. Country Examples of Advance Tax Rulings. Meaning of Advance Tax Rulings: Many countries provide advance tax rulings (“ATR”) today. These rulings are issued either under a formal legislation by a separate body (Examples: India, Sweden) or given […]

Study Notes on Foreign Tax Relief

The below mentioned article provides a study note on foreign tax relief. After reading this article you will learn about: 1. Introduction to Foreign Tax Relief 2. Expense Deduction 3. Exemption Method 4. Foreign Tax Credit 5. Country Examples of Foreign Tax Relief. Contents: Introduction to Foreign Tax Relief Expense Deduction Exemption Method Foreign Tax […]

Treatment of Various Tax Losses

In this article we will discuss about the treatment of various tax losses:- 1. Revenue or Trading Losses 2. Capital Losses 3. Foreign Branch Losses 4. Group Taxation. Revenue or Trading Losses: Most countries in the world allow the carry-over of losses of residents and permanent establishments of non-residents for either an unlimited or a […]

Basis of Tax Computation

In this article we will discuss about the basis of tax computation:- 1. Introduction to the Basis of Tax Computation 2. Tax Rate 3. Tax Base 4. Accounting Policies 5. Tax Allowances and Disallowances 6. Tax Incentives 7. Assessment and Withholding Taxes. Introduction to the Basis of Tax Computation: The taxable income or tax base […]

Tax Residence for Individuals, Companies and Others

In this article we will discuss about the tax residence for individuals, companies and others. Residence of Individuals: General: The tax residence of individuals is normally decided on factors that can be determined by external observation. Generally, it is based either on: (a) The “physical presence” in the country or (b) The “facts and circumstances” […]

Principles of Domestic Tax Systems

In this article we will discuss about the principles of domestic tax systems. General Principles of Domestic Tax Systems: As early as 1776, Adam Smith prescribed the four principles of taxation in his book on the “Wealth of Nations” as follows: (a) Equity: The tax payable should accord with the ability to pay, or the […]

Source of Passive Income | Taxation

In this article we will discuss about the source of passive income:- 1. Dividend Income 2. Interest Income and Expense 3. Royalty Income and Payments 4. Capital Gains. Dividend Income: General: Dividends are normally understood to refer to a profit share paid out by a company to its shareholders out of retained earnings. For tax […]

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