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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

Dual residence

Understand the meaning and definition of Dual residence in the context of stock market, trading, and investments.

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Abuse of law

Understand the meaning and definition of Abuse of law in the context of stock market, trading, and investments.

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Revenue neutrality

Understand the meaning and definition of Revenue neutrality in the context of stock market, trading, and investments.

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Retained earnings

Understand the meaning and definition of Retained earnings in the context of stock market, trading, and investments.

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Indirect-charge method

Understand the meaning and definition of Indirect-charge method in the context of stock market, trading, and investments.

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Transaction taxes

Understand the meaning and definition of Transaction taxes in the context of stock market, trading, and investments.

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