International Taxation

These flashcards cover key concepts related to international taxation, including types of taxes, the implications of various tax strategies, and regulations surrounding taxation of foreign income.

Corporate Income Tax

A tax imposed on the income of corporations, with rates varying by country.

Withholding Tax

A tax on payments such as dividends, interest, and royalties made to foreign entities.

Controlled Foreign Corporation (CFC)

A foreign corporation where U.S. shareholders own more than 50% of its stock.

Subpart F Income

Types of income earned by CFCs which are taxed in the U.S. immediately, including passive income and foreign base company income.

Foreign Tax Credit (FTC)

A credit allowed by the U.S. to offset taxes paid to foreign governments on income.

Double Taxation

The taxation of the same income in more than one jurisdiction.

Tax Havens

Countries or territories with very low or no corporate income tax rates, attracting foreign investment.

Territorial Taxation

A tax system where only income earned within a country is taxed.

Worldwide Taxation

A tax system where all income of a resident or corporation is taxed, regardless of source.

Value-Added Tax (VAT)

A consumption tax placed on a product whenever value is added at each stage of production.