International Tax Environment and Transfer Pricing

What are the objectives of Taxation?

• Tax Neutrality and Capital-import Neutrality

• Tax Neutrality and Tax Equity

• National Neutrality and Capital-import Neutrality

A _______________ is an indirect tax that is borne by a taxpayer who did not directly generate the income

• Tax Equity

• Income tax

• Withholding tax

• Value-added tax

Direct tax levied on active income

• Withholding Tax

• Value-added Tax

• Income Tax

Also known as source method of declaring tax

• Territorial Taxation

• Territory Taxation

• International Taxation

• Foreign Tax Credit

Income tax paid by the subsidiaries

• Foreign Tax Credit

• Direct Foreign Tax Credit

• Indirect Foreign Tax Credit

Affiliate organization that is independently incorporated in the foreign company

• Foreign Branch

• Foreign Subsidiary

• Tax Havens

• Controlled Foreign Corporation

Occurs when goods or services are exchanged between divisions of the same company

• Transfer pricing accounting

• Transfer pricing

• Transfer price

Fund generated by a company’s foreign operation that cannot be moved from the local subsidiary to the overseas parent company because of government regulation

• Transfer Funds

• Trade violations

• Block Funds

• Foreign Transfer Funds

Transactions that pair the tax credits or other tax benefits generated by a qualifying physical investment with the capital financing associated with that investment

• Tax Equity

• Tax Neutrality

• Taxation

• Tax Equity and Tax Neutrality

Tax income earned within the country by any tax payer

• Income Tax

• Territorial Taxation

• Foreign Tax Credit

• International Taxation