Source-Based Taxation
/ˈsɔrs beɪst ˌtækˈseɪʃən/
Definitions
- (n.) A tax principle whereby income is taxed based on the location where it is generated rather than the residence of the taxpayer.
Source-based taxation requires multinational companies to pay taxes in the countries where their profits arise.
Forms
- source-based taxation
Related terms
See also
Commentary
Often contrasted with residence-based taxation, source-based taxation focuses on taxing income at its point of origin, which can affect cross-border tax obligations and planning.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.