StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

International Taxation Rules on International Companies - Essay Example

Comments (0) Cite this document
Summary
Many developed and developing countries have been party to various political and economic conventions, organizations, protocols, and agreements, specifically designed to enhance trade and economic development among member states. Besides helping nations to settle their disputes amicably without necessarily resulting to war like it happened in World Wars I and II, these organizations and treaties have been key in ensuring that international trading and economic standards are maintained for the benefit of all nations (Rawal, 2006)…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.3% of users find it useful
International Taxation Rules on International Companies
Read TextPreview

Extract of sample "International Taxation Rules on International Companies"

Download file to see previous pages The OEEC was later rearranged into the Organization for Economic Cooperation and Development (OECD) in 1961. Today, the OECD is made up of thirty countries that accept the principals of free market economy and representative democracy (Owens, 2008). Most OECD countries are developed countries, with high-income countries. Some of its members include France, United Kingdom, United States, Denmark, Finland, Spain, Sweden, Italy, Japan, among others.
The functions of the OECD are multifaceted. But for the purposes of this discussion, it is only imperative to mention that, OECD functions as an intergovernmental organization which aims at coordinating economic development of members as well as non-member nations through trade liberalization, multilateral trade, and economic reform. The organization also covers economic and scientific research, technology transfer, international terrorism, and economic and statistical information (OECD, 2007).
As much as the OECD would want to come up with proper legislation and...
For example, most developed nations have zero or low taxes for certain types of groups. As such, the organization has found itself leaning more on international taxation rules in its operations. This is because many corporations may have interests in several countries that employ different tax regimes (Doenberg & Hinnekens, 1998). A good example would be the Multinational corporations, which must employ the services of an international tax specialist to decrease the global tax liabilities. Tax laws from different countries around the world affect companies and individuals with assets and income in more than one nation differently.
Tax laws vary in different nations as to what income is taxable and how it is measured, who or which entity is taxable, when deductions are allowed and income is taxed, what deductions are allowed from the taxable income and the tax rates. These variations, if not well controlled may bring a scenario where the same income of an international company is taxed by different countries (Larkins, 2004). This is better known as double taxation. As such, there is need for international tax planning to take care of the loopholes occasioned by the above named variations among countries. How then must international companies be taxed rationally
The concept of international tax planning and law has gained considerable attention from the perspective of tax authorities as well as from the taxpayers. The OECD has played an active role in the creation of international tax rules to help businesses move away from double taxation, intractable disputes, and uncertainty (Owens, 2008). According to Mr. Jeffrey Owens, a director of OECD in tax policy administration, improper tax rules can discourage international activity, discourage investment, and ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“International Taxation Rules on International Companies Essay”, n.d.)
International Taxation Rules on International Companies Essay. Retrieved from https://studentshare.org/miscellaneous/1532216-international-taxation-rules-on-international-companies
(International Taxation Rules on International Companies Essay)
International Taxation Rules on International Companies Essay. https://studentshare.org/miscellaneous/1532216-international-taxation-rules-on-international-companies.
“International Taxation Rules on International Companies Essay”, n.d. https://studentshare.org/miscellaneous/1532216-international-taxation-rules-on-international-companies.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF International Taxation Rules on International Companies

International Taxation

...? International Taxation Introduction The rapid globalization in the recent decades has given rise to a large number of multinational companies (MNCs) that have that have operations in several countries. The growth of international business has brought with it the challenges of harmonization of business strategies in the different geographical locations of operations. One of the most glaring challenges is the issue of taxation. In most countries, the tax unit is considered to the individual company. The local registered subsidiaries of multinational companies have to pay individual tax returns in their respective countries. Essentially, this means that a multinational company with hundreds of companies worldwide is not regarded as a single...
8 Pages(2000 words)Research Proposal

International Taxation - Transfer Pricing

...?In the corporate and financial market, transfer pricing is one of the controversial issue which is being debated at large. In international taxation, transfer pricing has become a heated issue. Corporation on one hand see it as a legitimate tool for tax evasion and tax avoidance, while on the other hand, the regulators and legislators, see it as unlawful and is frowned upon. [Shaxon, N. (2012)] In order to acquaint with the concept of transfer pricing, consider two companies, that is a parent companies and a subsidiary company or two subsidiaries that have the same parent company, actively involved in trading with each other. For the purpose of the subject under consideration, it is also assumed that the subsidiary company...
8 Pages(2000 words)Research Paper

International Taxation - International Taxation and Foreign Tax Credits

...?U.S. Foreign Tax System Introduction Globalization has become the norm of U.S. business world. The increasing adaptation of globalization by both large and small companies has changed the traditional ideas of tax reforms that earnings can be taxable if only they are earned within geographical boundaries. In order to promote this dynamism, it is necessary that the U.S. government collect taxes from income that is earned only within the nation and companies that are earning profit outside the U.S. boundaries should be allowed to follow the tax rules of the countries in which they are doing business. However, in reality the U.S. government ignores this concept of neutrality and imposes taxation on profits earned by U.S. companies in any...
6 Pages(1500 words)Research Paper

International Taxation Issues

...International Taxation Issues Question: An Australian individual wants to commence manufacturing operations of prefabricated birdcages that come in kit assembly form, from overseas in Iberica. Australia does not have a tax treaty with Iberica. The following information is relevant: 1) Manufactured birdcages are constructed from materials purchased in Iberica on arms' length terms by the Iberican branch or subsidiary (the investment vehicle). The income in relation to Iberican operation is only from the sale of the manufactured goods. 2) Iberica has a company tax rate of 27%. 3) Financing of the Iberican operations will be by equity. 4) Withholding tax on company dividends is imposed in Iberica. Required: 1) Advise of the taxation...
7 Pages(1750 words)Essay

Current Rules To The Deciding Taxation Of International Companies

... Current Rules To The Deciding Taxation Of International Companies Is there an "international tax regime" A significant degree of convergence has been witnessed in the domestic tax laws of the developed nations. The convergence is especially advanced with regard to matters pertaining to international tax. This is because there is an interaction of tax law of the different jurisdictions (Avi-Yonah 2007). As such, it is possible to document instances of a direct influence. For instance, it is a common practice today to find every developed county taxing its citizens who may be residents of an overseas country (OECD 2001). These taxation measures have especially been inspired by the example of the United States. In addition, the same rules...
7 Pages(1750 words)Essay

International Transport Companies

.... Conclusion It seems that as long as there is money to be made from the transport of illegal goods, there will be transporters and smugglers who work under covers to make a quick profit. At the same time, transport companies and the shipping industry as a whole will continue to experience the negative effects of illegal activities and the issues faced by the industry will have to be taken in stride. Just as law abiding citizens have to follow some rules and established controls for their security, transport companies will have to follow the rules laid down by governments and international bodies to continue making the world a better and safer place. Works Cited IRU (International Road Transport Union), 2002. Terrorism and Security...
8 Pages(2000 words)Essay

The Concept of International Taxation

Despite the fact that individual country has its unique Taxation System, all countries are bound to act in conformity with generally accepted International rules for taxing multinational companies and their citizens when they earn some amount of incomes from overseas. Hence, the rules highlighted below hold true for all international transactions currently undertaken among nations across the globe.

Jurisdiction for taxation: The very first step in international taxation is the determination of which place or locality is eligible or has the right to lay claims to the taxes payable by a company. There are some descriptions that could fit how a company’s jurisdiction may be determined. The first description defines j...
5 Pages(1250 words)Case Study

The Role Played by Cultural Difference in International Politics

The discourse of multiculturalism is inconsistent. To its advantages belongs preservation of cultural pluralism, recognition, and protection of the diverse minority, refusal from xenophobia, chauvinism, and racial prejudices. Lacks are shown in ethnisation of social relations, the institutionalization of cultural distinctions, ignoring the liberal principle of priority of the rights of an individual.

The culture of any nation, defining its spiritual uniqueness, expressing its creative power and abilities, simultaneously is a property of all mankind. “According to official multiculturalism, no individual is forced to retain his or her culture, but all cultures are granted a universal right to celebrate and even to...
9 Pages(2250 words)Essay

International Trade Theory

 Further to this, it is also believed that international trade can bring substantial economic welfare to the countries however still most of the countries do not view it as a favorable thing. Despite having a very promising and bright outlook, international trade has been largely viewed with suspension and it is because of this that governments impose barriers to restrict international trade. There can be many reasons behind this act of imposing restrictions or blocking international trade however there are also benefits on the other side too.

International trade has driven the attention of many of the brilliant minds in economics therefore the origins of the economic theory on international trade owe much to the c...
6 Pages(1500 words)Case Study

Globalization and International Business: Starbucks Corporation

The Small Business Encyclopedia defines globalization as the process by which the economies of countries around the world become increasingly integrated over time. This integration occurs as technological advances expedite the trade of goods and services, the flow of capital, and the migration of people across international borders (globalization, Answers.com).
The shreds of evidence of globalization are all around us. For example, Hill (2005) cites an example of an American driving a car designed and produced in Germany that was assembled in Mexico from components made in Japan fabricated by Korean steel and Malaysian rubber. The car is filled with gasoline from oil pumped from off the coast of Africa, at a service station o...
12 Pages(3000 words)Case Study

Taxation of International Companies

... Current Rules To The Deciding Taxation Of International Companies Is there an “international tax regime”? A significant degree of convergence has been witnessed in the domestic tax laws of the developed nations. The convergence is especially advanced with regard to matters pertaining to international tax. This is because there is an interaction of tax law of the different jurisdictions (Avi-Yonah 2007). As such, it is possible to document instances of a direct influence. For instance, it is a common practice today to find every developed county taxing its citizens who may be residents of an overseas country (OECD 2001). These taxation measures have especially been inspired by the example of the United States. In addition, the same rules...
8 Pages(2000 words)Assignment

Potential Benefits of International Trade

Conditions set for international trade have also changed in various nations. Today, interdependent is evident due to various global distributions. Examples are; transportation systems, the internet as well as satellite communication systems.
The establishment of WTO (World Trade Organisation) promoting equity in nations’ status, the international monetary Fund (IMF) besides the World Bank, has made stronger the anchorage of international trade. These organisations aid in reducing the trade barriers across boundaries. Nelson (2000). This is a study set out to make a comprehensive and vivid answer to the question, “Which are the benefits of international trade and why are trade restrictions imposed by countries?&rdq...
6 Pages(1500 words)Coursework

International Security Studies: Examination

Globalization affects international security in the sense that problems involving terrorism, the environment, religious extremism, weapons of mass destruction, and the economic crises have become more universal and widespread in character (Ivanov “Article”). As a result, these issues pose a greater threat to national and international stability and safety. More lives are now affected by threats to international security; these threats did not seem too ominous before the entry of globalization. Consequently, some extremists justify the use of mass weapons of destruction in order to guarantee their security. And as globalization continues to expand and to grow bigger as a phenomenon, threats to international security are...
7 Pages(1750 words)Assignment

International Law: Child Soldiers

Using children to fight wars is not only morally abhorrent but very bad very the physical and mental health of the children in question. That is in part why a series of international laws and treaties have come into effect to try to deal with this scourge. But the issue is more complicated than that. While child soldiers are victims of war crimes, they too can also perpetrate serious breaches of the law of armed conflict. Under normal circumstances, individuals who commit such acts, be they combatants or not,2 would be vulnerable to prosecution. However, because children in such situations are victims as well as perpetrators and because of the special protections afforded to children under international law, many have questioned w...
8 Pages(2000 words)Case Study

International Affairs v. Liberalism

As a matter of fact, Hoffman’s statement that “international affairs is the nemesis of liberalism” has a grain of truth in it and this is especially so after the 9/11 incident.
There are two schools of thought or perspectives that are used to view international affairs: liberalism and realism. The study of these two perspectives is significant to the idea posed by Stanley Hoffman because they determine the reasons why international affairs, according to him, does not only see eye-to-eye with liberalism but seems to stand on the opposing side of it.
Liberalism can be defined as having four elements: citizens; the legislature; property rights, and; a market-driven economy (Dunne 186). Realism, on the othe...
6 Pages(1500 words)Assignment

Tax Treaties and International Taxation

... Atlantica and Freedonia: Tax Treaty Model In choosing a tax treaty model, Atlantica and Freedonia will be guided by the objective of preventing tax evasion and double taxation as well as the manner in which the tax treat model achieves these ends. Bilateral tax treaties typically have two general purposes; the prevention of double taxation and the prevention of tax evasion.1There are a variety of tax treaty models that can be used by Atlantica and Freedonia for the purpose of accommodating their respective and mutual tax issues. The two main tax treaties published by international bodies are the OECD’s Model Convention with Respect to Taxes on Income and Capital (OECD Model) and the UN Model Double Taxation Convention between...
18 Pages(4500 words)Research Paper

International Business: World Economic Forum and Davos 2010

... sense power consumption and power quality. A modest sheet of paper, 50,000 thinner than human hair, when stacked, nets a material 500 times stronger than steel and is changing the way airplanes, automobiles and electronics are made (Alpern, 2009). International Technological collaborations are taking place in the form of strategic alliances, joint ventures and intimate supplier-producer relationships. Such collaborations include activities such as joint development agreements, technology sharing and R&D contracts amongst others (Rycroft, 2002). ICT has pervaded every aspect of business and today the value chain depends on the use of technology to link the customers and suppliers. In the current dynamic and global markets, technology...
7 Pages(1750 words)Coursework

Validating Late Mover Advantages in e-commerce: Evidence from Selected Companies

...Research Proposal: Validating Late Mover Advantages in e-commerce: Evidence from Selected Companies Table of Contents Table of Contents 1 Title 3 Background 3 Objective 4 Project Aim 4 Research Hypothesis 5 Research Questions 5 Ethical Considerations 6 Literature Review 6 Research Methodology 9 Phenomenological Paradigm 9 Positive Paradigm 9 Deductive vs. Inductive Research 10 Data Collection Techniques 10 Proposed Research Methodology 11 Primary Data Collection 11 Survey Questionnaire 11 Research Methodology Limitations 12 Proposed Structure of Report 13 Time Schedule 16 References 17 Title Validating Late Mover Advantages in e-commerce: Evidence from Selected Companies Background E-commerce is a global market place that is characterized...
12 Pages(3000 words)Research Proposal

International Taxation and Multi National Companies

However, the poor alignment between the corporate strategies and global tax planning would create an unnecessary tax burden on the business activities. Especially the MNCs focus its attention on global expansion, cost reduction, new products and services and creation of new value chains as its business initiatives and therefore tax planners and the senior executives in MNCs need to identify both the tax risk and tax opportunities in their global tax environment.
Effective tax planning in MNCs requires the ability to react in the changing business environment and also plan for future opportunities. Developing a global tax structure for MNCs involves multiple steps including studying the global profit and tax rate, setting goals...
10 Pages(2500 words)Research Paper

Project Management of Beijing Capital International Airport T3 Terminal

Some stakeholders can be both driving (positive) and restraining (negative) forces, it depends on how the project will meet their interests. These forces are marked by a dotted line. If changes happen, and the project won’t meet the interests of some of these stakeholders, a vector of the corresponding force will be changed onto the opposite and the force will move onto the opposite part of the diagram.

Each half of the diagram (left and right) is divided into three parts – Low, Medium and High. It defines the size of a force vector and indicates the importance (power) of a given force. Short forces have a low level of power.

Civil Aviation Administration of China (CAAC) – undoubtedly advanc...
7 Pages(1750 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic International Taxation Rules on International Companies for FREE!

Contact Us