International taxation is the study or determination of tax on a person or business subject to the tax laws different countries or the international aspects of an individual country’s tax laws as the case may be.

Governments usually limit the scope of their income taxation in some manner territorially provide for offsets to taxation relating to extraterritorial income. The manner of limitation generally takes the form of a territorial, residence-based, or exclusionary system. Some governments have attempted to mitigate the differing limitations of each of these three broad systems by enacting a hybrid system with characteristics of two or more. Such systems of taxation vary widely, and there are no broad general rules. These variations create the potential for double taxation (where the same income is taxed by different countries) and no taxation (where income is not taxed by any country). Income tax systems may impose tax on local income only or on worldwide income. Generally, where worldwide income is taxed, reductions of tax or foreign credits are provided for taxes paid to other jurisdictions. Limits are almost universally imposed on such credits. With any system of taxation, it is possible to shift or recharacterise income in a manner that reduces taxation.

Corpansh Business Advisors team helps in recharacterising income in a manner beneficial with respect to international tax and compliance.