: Countries tax their residents on worldwide income , regardless of where it is earned.
UN Model Tax Convention : Provides more taxing rights to "source" (developing) countries. : INTERNATIONAL TAXATION
: Allow taxpayers to reduce their domestic tax liability by the amount of taxes paid to a foreign government. : Countries tax their residents on worldwide income
International taxation involves the rules and principles governing how income, profits, and taxable activities are taxed when they cross national borders. The primary goal is to allocate taxing rights between countries fairly while preventing double taxation. Taxing Rights & Jurisdiction : International business | Internal Revenue Service OECD Model
: An OECD-led initiative to close gaps in international tax rules that allow multinational enterprises to artificially shift profits to low or no-tax locations. International business | Internal Revenue Service
OECD Model Tax Convention : Favors capital-exporting (developed) countries.
