Foreign Tax Identification Number (FTIN)
A Foreign Tax Identification Number (FTIN) is a unique identifier assigned by a foreign tax authority to individuals and entities for tax purposes. It is used to track tax obligations and ensure compliance with local tax laws in a country outside of the individual’s or entity’s home jurisdiction.
FTINs are essential for individuals who engage in cross-border activities, such as working, investing, or conducting business abroad, as they may be required to file tax returns or pay taxes in that foreign jurisdiction. The format and issuance process of FTINs vary by country; for example, in some countries, it may be equivalent to a Social Security Number (SSN) or Employer Identification Number (EIN) used in the United States.
Having an FTIN is important for tax reporting, claiming benefits under international tax treaties, and avoiding double taxation on income earned abroad.
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