International Taxation

International Taxation refers to the tax imposed on individuals and businesses that operate across national borders. It involves the application of tax laws and regulations in different countries and can involve issues such as double taxation, transfer pricing and tax heavens. 

Double taxation occurs when the same income or capital is subject to tax in two or more countries. Thus many contries have entered into double taxation avoidance agreements with other countries to establish the rules for how income and capital should be taxed in each country. 

The OECD and UN are among the countries that work to develop international tax standards and policies.

Some of the key components of international taxation in India includes :

1. Taxation of foreign companies doing business in India : Foreign Companies operating in India are subject to Indian Corporate tax on their Indian - sourced Income. They may also be subject to withholding taxes on certain types of payments made to non -resident , such as interest , royalties and Dividend

2. Double Taxation Relief : India has entered DTAA with several countries to avoid Double taxation of the same income in both countries.

3. Foreign tax Credit : Indian taxpayers are entitled to claim the foreign tax credit for taxes on foreign - source income.

4. Taxation of Expatriates :  Taxation of Expatriates in India are subject to Indian tax laws, including corporate income tax and witholding taxes certain types of payments.

5. Foreign Direct Investment in India : Foreign Investors making investments in india are subject to indian tax laws, including corporate income tax and witholding taxes on certain types of payments.

6. Taxation of Indian Companies doing busines abroad : Indian companies operating abroad may be subject to foreign corporate income tax on their foreign sourced income.

7. Permanent Establishment : The Indian income tax act includes provisions that define the concept of permanent establishment and taxation of foreign companies with a PE in India.