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Taxes

Force of attraction

One must understand the importance of a permanent establishment when it comes to taxation. This refers to the concept where a country taxes the income and property of a business located within its borders. However, it also extends to all income earned by the foreign head office from sources within the country and all property owned by the foreign head office situated in the country. Interestingly, the OECD model treaty does not allow the application of this concept.

Related terms

Global income tax

Understand the meaning and definition of Global income tax in the context of stock market, trading, and investments.

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World wide income

Understand the meaning and definition of World wide income in the context of stock market, trading, and investments.

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Refund (of tax)

Understand the meaning and definition of Refund (of tax) in the context of stock market, trading, and investments.

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Negative income tax

Understand the meaning and definition of Negative income tax in the context of stock market, trading, and investments.

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Book value

Understand the meaning and definition of Book value in the context of stock market, trading, and investments.

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