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Last Updated on: 20th September 2024, 07:30 am

The concept of territorial tax countries has gained significant attention among individuals and businesses seeking effective tax strategies. In a territorial tax system, only income earned within the country’s borders is taxable. Income derived from foreign sources is typically exempt from taxation, which can greatly reduce the tax liability for those with substantial global income. This approach aligns well with the growing importance of international tax planning and seamlessly fits into the broader global tax system.

The appeal of territorial tax systems is not just theoretical. For instance, OECD countries have seen a shift towards territorial taxation, with 27 out of 34 member countries adopting some form of this system by 20241. Furthermore, popular territorial tax countries like Costa Rica and Panama attract residents with favorable tax residency rules and lower income taxes ranging from 10-25% and 15-25%, respectively2. These benefits make territorial tax systems a compelling option for high-net-worth individuals and businesses seeking to optimize their tax status.

Key Takeaways

  • In a territorial tax system, only local income is taxed.
  • OECD countries are increasingly adopting territorial tax systems1.
  • Costa Rica and Panama offer attractive tax residency rules and lower tax rates2.
  • Transitioning to a territorial tax system can significantly reduce tax liability.
  • Aligning with the right territorial tax country depends on financial goals and income sources.

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What is a Territorial Tax System?

A territorial tax system is a taxation framework where taxes are levied solely on the income generated within a country’s borders. This is in contrast to the worldwide taxation system which taxes global income. Countries that adopt territorial tax systems often provide strategic advantages for international tax planning.

Definition and Overview

Traditional worldwide taxation systems like those in the US and many European countries tax all domestic-source income, alongside the foreign-source income of resident corporations. On the other hand, territorial tax countries only tax income generated locally, allowing foreign income to remain untaxed. For example, in 2017, the United States transitioned from a worldwide tax system to a territorial tax under the Tax Cuts and Jobs Act (TCJA)3. This shift aimed to eliminate the taxation of repatriated dividends while targeting income accrued within controlled foreign corporations (CFCs)4.

Comparison with Worldwide Tax System

A key difference between these two tax systems lies in their approach to foreign income. Under the previous US worldwide tax system, companies faced a 35% corporate tax rate on repatriated earnings, compared to the 19% corporate tax rate levied on earned profits in the UK3. Territorial tax systems generally do not tax dividends received from controlled foreign corporations by resident companies4, providing significant tax relief. Moreover, many territorial systems implement anti-avoidance measures, such as the OECD’s proposed global minimum tax on foreign-source income to curb income shifting4.

Importance in International Tax Planning

The distinction between territorial tax systems and worldwide taxation is crucial for international tax planning. By focusing on local income, territorial systems offer opportunities for tax optimization. Countries moving closer to territorial systems, like the US, have eliminated taxation of dividends from controlled foreign corporations to reduce base erosion4. This provides businesses and individuals residing in territorial tax countries with an advantageous framework to minimize their tax burden effectively.

Advantages of Territorial Tax Systems

tax implications for expats

A territorial tax system offers numerous advantages that make it an appealing choice, particularly for expats and digital nomads. This system’s benefits include substantial tax savings on foreign income, increased incentives for foreign investments, and unique perks for a global workforce.

Tax Savings on Foreign Income

One of the most significant advantages of adopting a territorial tax system is the tax savings on foreign income. Unlike worldwide tax systems which tax income regardless of where it is earned, territorial systems tax income only where it is earned. This can lead to considerable savings for individuals and businesses engaged in international operations. For example, the Tax Cuts and Jobs Act in the U.S. eliminated the taxation on repatriated dividends and introduced measures like Global Intangible Low-Taxed Income (GILTI), aimed at preventing income shifting4. Moreover, transitioning to a territorial tax system could unlock $1.7 trillion currently held overseas by U.S. companies1.

Encouragement for Foreign Investments

Territorial tax systems also encourage foreign investments by reducing the complexity and compliance costs associated with a worldwide tax system. This system places companies on an equal footing with global competitors and potentially deters reincorporation abroad1. Additionally, the incentives provided by territorial tax systems facilitate shifting investments and profits to low-tax foreign countries, thereby fostering a more tax-efficient allocation of resources4. This can lead to job creation and economic growth in the host countries, benefiting both the investors and local economies.

Benefits for Digital Nomads and Expats

For digital nomads and expats, the tax implications can be significant. Having a flexible tax environment where only local income is taxed allows these individuals to enjoy the benefits of diverse income sources without the heavy burden of foreign income tax. This is evident in countries like Spain, which exempts specific foreign-sourced income types such as capital gains and dividends from taxation5. Furthermore, the increase in countries adopting territorial tax systems from 17 to 27 out of 34 OECD members in the past decade underscores the growing acceptance and advantages of such tax regimes globally1.

Overall, the territorial tax system offers a more favorable environment for foreign income tax management and fosters an encouraging atmosphere for offshore investments and the growing community of digital nomads and expats. To delve deeper into specific cases and additional advantages, refer to the detailed document on the IFA Canada website here5.

Types of Tax Systems Around the World

When examining the global tax system, it is crucial to understand the different tax models employed worldwide. There are three primary types of taxation systems: territorial, residential, and citizenship-based.

Territorial tax systems are prevalent in approximately 40 countries, including Panama, Paraguay, and Thailand. In these jurisdictions, only locally-sourced income is subject to taxation, a feature particularly alluring to location-independent entrepreneurs6. Residential taxation, implemented by more than 130 countries, taxes the worldwide income of residents, including major nations like most EU countries, Canada, and Japan6.

Citizenship-based taxation is much less common, with only the United States and Eritrea practicing this model. Eritrea levies a 2% flat tax on its citizens’ global income, while the United States requires citizens to declare taxes to the IRS regardless of their residence, potentially with the advantage of the Foreign Earned Income Exclusion (FEIE)76.

Moreover, non-domicile (non-dom) tax systems act as a hybrid between residential and territorial models. Countries like the United Kingdom, Cyprus, and Malta use non-dom systems to differentiate between domicile and residence for tax purposes6.

Residential tax systems are preferred by developed countries, as they allow for taxation on worldwide income while providing exemptions for citizens living abroad. Nonetheless, establishing non-residency to avoid such obligations can be complex7. For corporations, while most OECD countries have moved towards territorial taxation over the past three decades, countries like Chile, Israel, Korea, and Mexico still maintain worldwide corporate tax systems8.

Key Benefits of Living in Territorial Tax Countries

expat taxation

Living in territorial tax countries presents numerous advantages, especially for expatriates seeking relief from high taxation and more freedom in managing their income sources. One of the most significant factors driving an increasing number of people to these nations is the potential for a lower tax burden coupled with greater flexibility in income streams.

Lower Tax Burden

In a territorial tax system, residents are generally taxed only on the income earned within the country, rather than on their global income. This can substantially reduce your overall tax obligations. Most OECD countries have transitioned from residence-based to territorial tax systems over the last three decades to enhance competitiveness9. For instance, countries like Panama, Paraguay, and Costa Rica exemplify this shift, attracting expatriates and businesses alike through simplified, less burdensome tax systems10.

Flexibility in Income Sources

Territorial tax systems provide individuals and businesses with the flexibility to diversify their income sources without the worry of being taxed twice. International tax treaties play a crucial role in this regard by preventing double taxation and promoting foreign investments10. Understanding the specific tax regulations and legislation in these countries is vital since these rules can significantly vary from one territory to another10.

Another compelling benefit is that these systems encourage foreign investments by reducing bureaucratic red tape and offering favorable tax regimes. For example, some countries apply lower tax rates on income generated locally by foreign entities, making them attractive for international businesses looking to minimize tax liabilities10.

Ultimately, the allure of territorial tax countries is not just in the potential for reduced tax burdens but also in the opportunity to pursue global income opportunities freely. This dual benefit makes these countries highly attractive for expatriates and businesses looking to optimize their financial strategies.

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Examples of Territorial Tax Countries

examples of Territorial Tax Countries

Several nations stand out as prominent examples of Territorial Tax Countries, each offering distinct advantages to international income earners and appealing to digital nomads. Costa Rica, Georgia, Malaysia, Panama, Paraguay, and the Philippines attract many expats due to their territorial tax systems.

The analysis of international taxation details how some countries, like Costa Rica and Panama, tax income earned within their borders while exempting foreign income11. This approach significantly benefits digital nomads seeking to reduce their global tax burden. In Europe, 19 out of the 27 European OECD countries utilize a fully territorial tax system, highlighting the prevalence of this approach in the region12.

In Costa Rica, for example, territorial taxation means that income sourced outside the country is not subject to local taxes, offering substantial relief for foreign income earners11. Similarly, Panama employs rules on transfer pricing to prevent income shifting among related parties, ensuring fair taxation on local income while excluding foreign income11. Furthermore, many countries like Malaysia and Paraguay have implemented regulations that favor digital nomads, allowing them to enjoy a flexible tax environment without the risk of double taxation13.

It is pivotal to understand that multinational corporations often rely on international tax specialists to navigate the global tax landscape effectively, which includes optimizing their taxation under territorial systems11. Jurisdictions like Georgia and the Philippines offer detailed regulations and incentives for both companies and individuals, making them desirable locations for establishing tax residency. These countries often participate in tax treaties that further define tax entitlements and provide mechanisms for dispute resolution, ensuring clarity and fairness in their tax policies13.

Moving forward, digital nomads and expats look for countries with efficient tax regimes to maximize their income. Examples of Territorial Tax Countries describe how their systems either fully or partially exempt foreign-sourced income, bringing considerable financial advantages to global earners. Understanding the specific regulations and benefits of each country can guide individuals in selecting the best tax residency options suited to their needs.

How to Obtain Tax Residency in a Territorial Tax Country

tax residency rules

Obtaining tax residency in a territorial tax country involves meeting specific criteria, primarily in terms of time and documentation. Understanding these tax residency rules is critical for legal compliance and enjoying the benefits offered by these regions.

Time Requirements

The exact time requirements for obtaining tax residency can vary significantly between countries. For instance, the Bahamas offers an annual residence permit for US$1,000, without the need for extensive physical presence, allowing residents to enjoy zero income tax on both local and global earnings14. In contrast, the British Virgin Islands provides a residence visa, typically processed within a month, to self-sufficient individuals who can demonstrate financial stability14. Similarly, Costa Rica and Malaysia only tax income generated within their borders, making them attractive options for those who frequently earn abroad15.

Legal and Documentation Process

Acquiring legal compliance in these countries often involves a set of specific documentation procedures. The Cayman Islands, for example, requires a substantial investment in real estate or business to obtain permanent residence14. Monaco mandates proof of accommodation and financial adequacy, which might include opening a bank account with a significant minimum deposit14. In Brunei, achieving residency or permanent resident status necessitates a substantial investment14. Similarly, the UAE enables tax residences through investment in public investments or real estate14. Ensuring adherence to these tax residency rules is essential for legal compliance and to maximize the financial benefits offered by these destinations.

Overall, while the requirements differ, understanding both the time and legal documentation essentials is key to successfully obtaining tax residency in a territorial tax country.

Case Studies: Popular Territorial Tax Countries

Malaysia income tax

Understanding the intricacies of territorial tax systems can be greatly enhanced through examining specific country case studies. Each of these countries offers unique fiscal strategies and incentives that attract individuals and businesses alike.

Costa Rica

Costa Rica is a prime example of a territorial tax system, highly regarded for its favorable tax policies. The Costa Rica tax scheme ensures that only income generated within the country is taxable, creating attractive opportunities for foreign investments.

Georgia

Georgia has made significant strides in establishing itself as a viable option for tax residency. The Georgia residency status offers a flat income tax rate of just 1% for businesses with annual turnover up to GEL 500,000. This attractive taxation model has contributed to Georgia’s growing popularity among entrepreneurs.

Malaysia

Malaysia’s income tax system is another model of a territorial tax regime. The Malaysia income tax framework taxes only income generated within the country, thereby attracting numerous digital nomads and expatriates. Malaysia maintains competitive tax rates and offers various exemptions to ensure a thriving business environment.

Panama

Panama’s tax laws are designed to attract international businesses and expatriates. The country’s territorial tax principle means that only Panama-sourced income is subject to taxation. This system allows for substantial tax savings on foreign-derived income, making Panama a prime destination for foreign investors.

Paraguay

Paraguay’s tax system is relatively straightforward and offers considerable advantages under its territorial tax scheme. Only income earned within Paraguay is taxed, which is particularly beneficial for individuals and businesses with significant foreign earnings. This makes Paraguay a desirable location for those seeking to minimize their global tax burden.

Philippines

The Philippines employs a mixed tax system that incorporates elements of a territorial tax structure. Under the Philippines’ tax regime, residents are taxed on worldwide income, while non-residents are taxed only on income sourced within the country. This setup provides a balanced approach, offering tax efficiency for different categories of taxpayers.

Through these diverse examples, it becomes evident how various countries leverage their unique territorial tax systems to draw in investors and expats, each with its own distinct set of incentives and fiscal policies16.

Challenges of Territorial Tax Systems

tax planning challenges

While territorial tax systems offer significant advantages, they also bring numerous tax planning challenges. One of the main hurdles is navigating complex international tax compliance requirements. More than 130 countries are discussing a global minimum tax to enhance tax base protection, addressing concerns about profit shifting and tax avoidance9.

The U.S. and several other nations have adopted elements of a territorial tax system as part of recent reforms. The U.S. included these in the Tax Cuts and Jobs Act (TCJA) of 20179. However, these changes have led to debates over the necessity of additional measures to safeguard these systems from potential abuses. The G20’s proposal in 2013 to design policies minimizing base erosion and profit shifting is part of this broader agenda17.

Another significant challenge is ensuring compliance with anti-abuse rules across different jurisdictions. Countries like the UK have adopted specific measures like limits on the deductibility of debt and diverted profits taxes to strengthen their tax systems9. Despite these efforts, the complexities associated with adhering to these varied measures can be overwhelming for corporations.

Adapting to these tax planning challenges while maintaining international tax compliance is critical. The OECD’s structured approach to territorial tax systems, utilized by 37 countries, showcases the importance of detailed planning17. However, the evolution from a worldwide taxation system to territorial taxation, as seen in several OECD countries over the last three decades, underscores the complexities involved1.

For instance, the European Union’s incorporation of changes through the Anti-Tax Avoidance Directive (ATAD) highlights the necessity for continuous evolution and compliance9. Challenges are further compounded by public resistance and the potential adverse impact on domestic investments and jobs1. Understanding these detailed nuances is crucial for successful navigation and optimization in territorial tax systems, as emphasized by recent reforms in countries like Japan and the UK1.

For a more comprehensive understanding of the challenges associated with territorial tax systems, refer to this detailed analysis. It elaborates on how such systems can exacerbate existing issues related to offshore tax havens, corporate offshoring, and reduced revenue for public investments17.

Strategies for International Tax Planning

international income management

Effective tax planning is crucial for individuals and businesses navigating the complexities of international income management. Selecting the right country and employing optimal financial strategies are paramount steps to achieving favorable tax outcomes. Below, we explore two key strategies to help guide this process.

Choosing the Right Country

When selecting a country for tax residency, it is essential to consider fiscal policies, economic stability, and personal preferences. Countries that offer a territorial tax system generally tax only the income earned within their borders, significantly reducing the tax burden for international income. For example, U.S. businesses face Federal taxation on their worldwide income, but certain income such as dividends from foreign subsidiaries may not be subject to U.S. taxation18. This allows businesses to leverage tax treaties that can lower effective tax rates and address issues like Permanent Establishment (PE) and cross-border taxation18. Consulting with experts and utilizing resources like the article on strategic international tax planning can provide crucial insights and assist in making informed decisions.

Effective Financial Management

Effective financial management includes strategically planning the allocation of assets and income to minimize tax liabilities. This approach encompasses leveraging deductions, credits, and deferrals. For instance, the TCJA transitioned U.S. tax policy towards a territorial system, allowing profits earned abroad to be taxed at lower rates in the respective jurisdictions18. Additionally, U.S. shareholders face an effective tax rate of 10.5% on GILTI, with eligibility for 80% of foreign tax credits associated with GILTI inclusions19. Companies can also benefit from a 37.5% deduction on FDII for 2023, which reduces the taxable income derived from foreign intangible assets19. Understanding these nuances is vital for proficient international income management.

Common Misconceptions About Territorial Tax Countries

There are several expat tax myths and misunderstandings surrounding territorial tax countries. It’s crucial to differentiate myth from reality to ensure proper tax compliance and avoid potential penalties.

Myth vs Reality

A common myth is that living in a territorial tax country automatically results in zero tax. While territorial taxation can indeed reduce tax liabilities, it is not synonymous with zero taxation. For instance, in countries like Malta, Gibraltar, and Singapore, individuals can avoid taxes on foreign income if it is not brought into the country20. However, knowing the specific rules is essential as they vary from one jurisdiction to another.

Another misconception is believing that all income from abroad is tax-free in these countries. This isn’t always true, as many countries have participation exemption rules that do not tax income distributed as dividends from foreign subsidiaries20. Additionally, certain countries like Thailand have remittance-based taxation where taxes apply only to income brought back into the country20.

Legal Compliance

Ensuring tax compliance in territorial tax countries requires a thorough understanding of local laws and the assistance of a professional. For instance, Italy shifted to a territorial taxation system in 2016 to attract high net worth individuals, but it still requires adherence to specific tax regulations21. Similarly, in the UAE, while there is no personal income tax, businesses with net profits exceeding AED 375,000 are subject to a 9% corporate tax rate22.

The importance of legal compliance cannot be overstated. Missteps in understanding local tax laws can lead to significant issues. For example, countries such as Armenia have simplified tax codes but maintaining adherence to a flat income tax rate of 20% for individuals and businesses is crucial to avoid penalties22.

Overall, while the allure of lower taxes in territorial tax countries is significant, it is built on a foundation of accurate knowledge and strict compliance with the respective legal frameworks. Dispelling expat tax myths and engaging in diligent tax planning are essential steps for global citizens.

Future of Territorial Tax Countries

The future of territorial tax countries is poised for significant transformations driven by global fiscal adjustments and evolving international tax policies. The OECD Pillar 2 framework, which introduces a minimum tax of 15% on multinational enterprises (MNEs) with global annual revenue of 750 million euros (approximately $820 million USD), is expected to impact how these countries adapt and reform their tax regimes23.

Approximately 140 countries, including the European Union (EU), are set to implement Qualified Domestic Minimum Top-Up Taxes (QDMTTs) and Income Inclusion Rules (IIRs) in accordance with the OECD Pillar 2 framework for the tax year 202423. This global alignment towards a consistent minimum tax rate underscores the broader tax jurisdiction outlook, influencing how territorial tax countries will position themselves.

Countries with robust international tax competitiveness, like Estonia, Latvia, and New Zealand, which rank first, second, and third, respectively, in the 2023 International Tax Competitiveness Index, will likely be at the forefront of adapting to these new tax standards24. The emphasis on future tax trends will prompt these nations to continuously innovate their tax systems to maintain their competitive edge.

Post-reform UK data highlights how the adoption of a territorial tax system can enhance the performance of multinational subsidiaries. Following the UK’s introduction of such a system in 2009, the profitability of UK subsidiaries in low-tax countries increased by an average of 2 percentage points, and the measured productivity of foreign affiliates surged by between 5 and 9 percent25. These outcomes offer valuable insights for other territorial tax countries looking to optimize their tax jurisdiction outlook.

Moreover, as the OECD Pillar 2 rules take root, U.S. companies may find themselves indirectly affected, particularly those operating under a hybrid territorial tax regime. These businesses might face extensive information requests from tax jurisdictions abroad to ensure compliance with the global minimum tax23. Therefore, U.S. firms must stay vigilant and proactive in their international tax planning strategies.

Understanding these future tax trends and the evolving tax jurisdiction outlook is crucial for stakeholders aiming to navigate the complexities of the global tax environment effectively. The ability of territorial tax countries to adapt and thrive amidst these changes will define their relevance and attractiveness in the years to come.

Country International Tax Competitiveness Rank (2023)
Estonia 1
Latvia 2
New Zealand 3
Switzerland 4
Czech Republic 5
Luxembourg 6

Conclusion

In conclusion, territorial tax countries present an appealing prospect for those interested in expat financial planning and global tax strategies. By taxing income solely earned within their borders, these systems offer opportunities for significant tax savings on foreign income and attract a multitude of businesses and digital nomads. This makes them a strategic option for those looking to optimize their financial portfolios.

The President’s Advisory Panel on Federal Tax Reform supports the adoption of a territorial tax system, noting that it should not adversely affect domestic production26. Additionally, research indicates no definitive evidence suggesting that such a system would significantly reallocate U.S. investment and jobs overseas, keeping domestic economic stability intact26.

For U.S. multinationals, switching from the current U.S. tax regime to a territorial tax system could enhance their competitiveness and increase investments both locally and abroad27. This shift is crucial as the U.S. corporate tax landscape evolves, especially when considering the proposed reduction of corporate income tax to 20 percent from the current 35 percent28. By adopting a territorial system, the U.S. would join countries like Japan and the United Kingdom, which have already implemented dividend-exemption systems, further strengthening their position in global markets28.

Ultimately, understanding the specifics of each country’s tax system, coupled with proactive planning and adherence to international tax laws, is essential. As the global financial landscape continues to shift, embracing the efficiencies and advantages of territorial tax countries will play a pivotal role in successful expat financial planning and global tax strategies.

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FAQ

What is a Territorial Tax System?

A territorial tax system taxes only the income generated within a country's borders. Unlike worldwide taxation, it exempts income derived from foreign sources.

How does a territorial tax system compare with a worldwide tax system?

A territorial tax system only taxes local income, while a worldwide tax system taxes global income, regardless of where it's earned. This is a crucial distinction in international tax planning.

Why is a territorial tax system important in international tax planning?

It is important because it offers tax optimization opportunities by focusing solely on local income, thereby potentially reducing the tax burden on foreign income and facilitating strategic financial planning.

What are the advantages of a territorial tax system for expatriates?

Expatriates benefit from reduced taxes on foreign income, increased financial flexibility, and advantageous tax residency rules in many territorial tax countries.

How do territorial tax systems encourage foreign investments?

By exempting foreign income from taxation, territorial tax systems attract foreign direct investment and incentivize businesses to invest in these jurisdictions.

Which countries use a territorial tax system?

Prominent examples include Costa Rica, Georgia, Malaysia, Panama, Paraguay, and the Philippines. Each has unique tax residency rules and varying tax rates on local income.

What are the common forms of tax systems around the world?

The main types include territorial tax systems, worldwide tax systems, and citizenship-based taxation, as seen in the United States.

What are the key benefits of living in a territorial tax country?

Chief benefits include a lower tax burden and greater flexibility in managing diverse income sources, especially for digital nomads and international income earners.

How can one obtain tax residency in a territorial tax country?

Generally, this involves meeting specific time and physical presence requirements, and navigating the necessary legal and documentation processes.

What challenges might one face with territorial tax systems?

Challenges include complex international tax planning, adhering to anti-abuse rules, and ensuring legal compliance across different jurisdictions.

What strategies are effective for international tax planning?

Effective strategies include choosing the right country based on financial goals and managing international income wisely, taking into account fiscal policies and economic stability.

What are common misconceptions about territorial tax countries?

Misconceptions often involve overestimating tax savings and misunderstanding legal requirements. Professional guidance helps dispel these myths.

What does the future hold for territorial tax countries?

The trajectory suggests continued evolution in response to global fiscal trends, advancing digital economies, and shifts in international tax policies, making it essential to stay informed.

Source Links

  1. https://taxfoundation.org/blog/global-perspective-territorial-taxation/
  2. https://digitalnomadtax.eu/territorial-tax-system-countries/
  3. https://taxfoundation.org/taxedu/glossary/territorial-taxation/
  4. https://www.taxpolicycenter.org/briefing-book/what-territorial-tax-and-does-united-states-have-one-now
  5. https://expatmoney.com/blog/what-is-a-territorial-tax-system
  6. https://globalisationguide.org/tax/world-taxation-systems/
  7. https://nomadcapitalist.com/finance/4-tax-systems/
  8. https://taxfoundation.org/taxedu/glossary/worldwide-taxation/
  9. https://taxfoundation.org/research/all/federal/anti-base-erosion-territorial-tax-systems/
  10. https://thenomadtax.com/en/territorial-taxation/
  11. https://en.wikipedia.org/wiki/International_taxation
  12. https://taxfoundation.org/data/all/eu/territoriality-tax-systems-europe-2021/
  13. https://www.irs.gov/individuals/international-taxpayers/tax-treaties
  14. https://nomadcapitalist.com/global-citizen/tax-free-countries-second-residency/
  15. https://www.linkedin.com/pulse/best-country-tax-residency-top-tax-free-options-expats-seo-ahad-izn1c
  16. https://www.rsm.nl/discovery/2020/tax-systems/
  17. https://www.aei.org/research-products/report/anti-base-erosion-provisions-and-territorial-tax-systems-in-oecd-countries/
  18. https://www.hwcpa.com/international-tax-considerations-for-us-businesses/
  19. https://pro.bloombergtax.com/insights/international-tax/international-tax-planning-for-u-s-corporations/
  20. https://offshorecitizen.net/tax/what-is-taxation-basis/
  21. https://www.taxsamaritan.com/tax-article-blog/how-the-world-taxes-guide-tax-systems-different-countries/
  22. https://www.doola.com/blog/12-low-tax-countries-in-asia/
  23. https://www.plantemoran.com/explore-our-thinking/insight/2024/05/oecd-pillar-2-tax-framework-will-take-effect-in-many-countries-in-2024
  24. https://taxfoundation.org/research/all/global/2023-international-tax-competitiveness-index/
  25. https://www.elibrary.imf.org/view/journals/001/2022/177/article-A001-en.xml
  26. https://scholarship.law.ufl.edu/cgi/viewcontent.cgi?article=1137&context=ftr
  27. https://www.heritage.org/taxes/report/territorial-tax-system-would-create-jobs-and-raise-wages-us-workers
  28. https://www.aei.org/wp-content/uploads/2017/12/Territorial-Taxation.pdf?x85095

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