Categories: General Tax Terms
International Tax Compliance refers to the adherence to tax laws and regulations that govern cross-border transactions and income for individuals and businesses operating in multiple countries.
This compliance involves understanding and fulfilling tax obligations in various jurisdictions, including the reporting of foreign income, the payment of taxes owed to different countries, and the filing of necessary forms such as the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS).
For example, a U.S. citizen working abroad must report their foreign earnings to the IRS, even if they pay taxes in the host country, and may be eligible for foreign tax credits or exclusions to avoid double taxation.
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