Some questions regarding international taxation.
When talking about international taxation it is very important to keep in mind that, at some point in the commercial relationship, i.e. in any economic operation between two companies, there will be elements such as taxation criteria, which is when states can adopt different criteria to determine what income to tax. /
Some countries tax residents on all their worldwide income, while others tax only the income generated within their territory, regardless of their residential independence. This can undoubtedly lead to taxation of the same income by more than one country../div>
lt should also be noted that there is a need for coordination between the tax systems of the countries involved, making it necessary to have a coordination and harmonization between their systems that does not lead to the duplication of taxes. Otherwise, when two or more countries tax the same income without considering the taxation carried out by other countries, what we know as double taxation is produced.
All this also leads to difficulties of residence and source, so it is imperative to determine very accurately the source of income so that it does not lead to double taxation. Otherwise both countries can claim the right to tax that income, and consequently much difficulty for the taxpayer../div>
To conclude, it is transcendental for many countries to have clear and determined rules in tax matters, so that no discrepancies are achieved in their tax treaties, bilateral or multilateral. However, discrepancies in the application of these treaties can lead to double taxation situations..