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Taxes

Source principle of taxation

One fundamental principle in the realm of international taxation is the concept of territorial taxation. This principle dictates that a country has the right to tax all income generated within its borders, regardless of the taxpayer's residence. This means that both residents and non-residents are subject to taxation on income earned within the country's jurisdiction. This approach ensures that a country can effectively collect taxes on all income flows arising within its territory, without discrimination based on the taxpayer's residency status.
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