Question

What is multinational taxes as well as other taxation concepts. Discuss key concepts.

Answer 1

MEANING :-

MULTINATIONAL TAXES - WITH AN EASY LANGUAGE I MUST SAY THESE ARE TAXES IMPOSED TO ENTITIES OPERATING THEIR BUSSINESS IN MORE THAN ONE COUNTRY.

IF WE DISCUSS ABOUT OTHER TAXATION CONCEPTS THE MAJOR DIFFERENCE IS WHERE IN MULTINATOINAL TAXATION ENTITES HAVE TO FOLLOW MORE THAN ONE SET OF TAXATION RULES OTHER TAXATION CONCEPTS ONLY REQUIRE TO FOLLOW ONE SET OF TAXATION RULES.

KEY CONCEPTS

1. TAX ASSESMENT BY MORE THAN ONE GOVERNING BODY OF RELEVENT COUNTRY. IT MAY BE RELATED TO THE INCOME EARNED IN THAT COUNTRY OR TOTAL INCOME IT DEPENDS ON THE RESPECTIVE RULES.

2. OTHER TAXATION RARELY DEPENDS ON THE TERRITORY OF BUSSINESS OPERATION WITH COMPARISION TO MULTINATIONAL TAXES,THESE ARE TOTALLY DEPEND ON TERRITORY OF BUSSINESS OPERATIONS OR PLACE OF BUSINESS.

3. THE ENTITIES OPERATING IN MORE THAN ONE COUNTRY ASSUME TO AVOID TAXATION OF RESPECTIVE COUNTRY BY CHANGING TERRITORY OR WITH OTHER WAYS.

4. THE GOVERMENT OF COUNTRIES WANT TO PROMOTE FORIGHN INVESTMENT AS WELL AS WANT TO AVOID TAX EVASION.SO THEY ARRANGE AGGREMENTS WITH MNCs.