International income taxation Essay Paper 8 pages

Business income refers to any income usually realized for the execution or transaction of business activity. This indicates that business income is the aspect of earned income from the perspective of business transaction or activity. In order for the business income to apply to the aspect of the taxation system, it is essential to classify business income as ordinary income. Business income consists of business expenses, business losses, and business profits. It is the difference between revenues and expenses of the process of business transactions. This indicates that business income can be positive or negative within the financial year depending on the size of the expenses and revenues. Business income is received from the transactions or sales of products or services within the defined market.

Question Two

Don't use plagiarized sources. Get Your Custom Essay on
International income taxation Essay Paper 8 pages
Just from $9/Page
Order Essay

OECD model treaty defines a clear perspective in relation to the handling of the business income. This is through indicating that the income of an enterprise of a contracting state shall undergo taxation only in the state in context unless the entity executes business activities in the context of other contracting states with the establishment of permanent facilities therein. In the determination of the amount of tax, the authority shall offer an allowance in relation to the volume of financial resource in the integration of the permanent establishment in the contracting states. No business income shall undergo attribution of the permanent establishment because of the concept of purchasing the establishment of the goods or services of the business entity. The determination of the business income will be consistent annually with exception to good, vital, and sufficient reasons to avert the decision in relation to evaluation of the income (Gustafson & Pugh, 1993).

Question Three

In the international business transactions, business income may become subject to taxation by more than one jurisdiction. This is the aspect double or multiple international taxations. Countries across the globe focus on the minimization of this limitation in order to promote effective and efficient international trade. This is through integration of valuable treaties such as multilateral and bilateral treaties with the aim of reducing these barriers to the international trade. This treaties focus on the illustration of how taxation of the business income should occur between or among the contracting states thus the opportunity to promote international trade through minimization of the barriers and increase the volume of transactions. Bilateral treaties and multilateral contracts also contribute towards the reduction of the level of taxation on the business income with various contracting states in order to minimize the burden of taxation.

Question Four

In the determination of the ‘source of income’ by the courts, several factors guide the decision of the judges. One of the essential factors in the determination of the ‘source of income’ by the courts is the location of the item of income (Gustafson & Pugh, 1993). This focuses on illustration on where the income will fall within the context of the taxation system. This is essential for the development of the taxation laws with the aim of leveraging the taxes concerning the type of income. Another essential factor in the determination of the ‘source of income’ by the courts is the area or region in relation to the income. This indicates the determination of the ‘source of income’ while focusing on the permanent establishment of the products or merchandize of the entity in question. This is also essential in the determination of the taxable amounts and rates for the income under the influence of the courts.

Question Five

The United States determines its source of income on different grounds in relation to the item of income. In the determination of the salaries, wages, and relevant compensation, the United States applies the location for the performance of the services. In the determination of the source of the business income, personal services, sales of inventory (purchased and produced), the nation applies three factors: allocation, selling area, and performance location. In the determination of the source of interests, the nation evaluates the residence of the payer of the income. In the evaluation of the source of dividends, rents, loyalties, natural resources, and patent, the United States applies location of the item, nationality of the corporation, and location for implementation of the item. In the determination of the sale of real property, the guiding factor is the location of the property. Sale of personal property is determined by the seller’s tax home (Scha-fer, 2006).

Question Six

In the determination of the source of income in the United Kingdom, several factors are essential in the making of the final decision for the taxation purposes (Scha-fer, 2006). One of the essential factors in the determination of the source of income in the United Kingdom is the location of the item of income. This focuses on the geographical location of the permanent establishment in the context of the item of income. Another method or factor in the determination of the source of income in the United Kingdom is the evaluation of the residence of the taxpayer. This is essential in the determination of the taxable amount and rate for the purposes of effective implementation of the taxation system. The United Kingdom also focuses on the determination of the use or application of income while evaluating its source. It is also ideal to focus on the performance location with the aim of determining the source of income in the United Kingdom.

Question Seven

Tax credit refers to the amount or sum deducted in relation to the total tax owed by the taxpayer to the state or nation (Ault & Arnold, 2010). Within the context of various nations or states, tax credits are usually granted in relation to various tax categories and types. For instance, tax credits could be granted in the aspects of the property tax, income tax, and VAT. The implementation of the concept of tax credit is beneficial to numerous taxpayers in various ways. When granted as a deduction from the total amount of tax owed to the state, individuals who are under a different jurisdiction of taxes will feel the real shrink in tax burden. When granted as a subsidiary, these individuals will have to pay minimal taxes thus essential in the minimization of the tax burden in relation to the taxpayers under the influence of numerous jurisdictions.

Question Eight

Double taxation is a crucial factor in the determination of the volume of the international trade. This is because of the restrictions it applies on investments and transfer of products or factors of production across the border. Implementation of the tax treaties contribute massively in the minimization of the influence of double taxation on the context of the investors. Nations enter in tax treaties with the aim of enhancing their volume of international trade and investments across the borders. This is because tax treaties are usually designed to encourage cross-border investment and business transactions or economic activities. Tax treaties offer an effective opportunity for the contracting states to identify and solve taxation disputes or conflicts. Relevant authorities also have valuable chance of implementing or enforcing taxation laws concerning the taxation treaties. This provides the opportunity for the reduction of the barriers in relation to the foreign direct investment. This indicates that tax treaties focus on the minimization of the concepts of double taxes thus reducing the tax burden on the investors (Gustafson & Pugh, 1993).

Question Nine

Question Ten

Services income focuses on the provision of rewards to the efforts of an individual, individuals, or companies in relation to the skills and services offered to the public and private sectors within the economy (Ault & Arnold, 2010). This indicates that for an individuals or entity to have service incomes, it must come from the act of labor or skills of the entity, individual, or individuals within the defined economy. An example of service income is the aspect of labor in the form of laying bricks. Financial resources from this action or form of labor are known as the services income. Employment income or income from employment is the amount or sum individual accumulates on a monthly basis or in accordance with the terms of the contract while offering his or her skills to the corporations, public, and private sectors (Ault & Arnold, 2010). Examples of income from employment include wages, salaries, or fees.

Question Eleven

There are differences and similarities between the employment income and services income. One of the main similarities in the context of the employment income and services income is the type of income. In most cases, services and employment are paid in the form of salaries, wages, and fees. Another similarity is the adoption and implementation of the concept of domestic test in the evaluation of the source of income. The test is used in both employment and service incomes to determine the difference in the sources of income for the application of taxation laws. One of the main differences between the employment income and services income is the aspect of regular payment. In employment income, employees obtain regular installment for their payment in relation to the terms and conditions of the contract. This is contrary to the mode of payment in the form of services income in which the payment mode is the lump sum in most cases (Ault & Arnold, 2010).

Question Twelve

Several tests are applicable in the evaluation of the source of income with reference to various entities across the globe. One of the most essential tests in the determination of the source of income in relation to the services or employment is the domestic test. This focuses on location in which the income was generated. It also identifies the area of performance of the source of income in relation to the rules and taxation system of the income. This will enable taxation systems and authorities to evaluate the source of income either in the form of the aspect of employment or services. An example of the domestic test in the context of internal and international trade is the gross domestic product. This focuses on the determination of the source of income on the gross domestic product (Ault & Arnold, 2010).

Question Thirteen

In the handling of international economic activities, the determination of the tax implications of an individual or business entity is through the evaluation of the source of income and implementation of the concept of the permanent establishment test. Permanent establishment is a term to the refer to the fixed place or particular location of the business or economic activity essential in the generation of income and value added tax in relation to a specific taxation system of jurisdiction. The permanent establishment test focuses on the evaluation of the business activity in the context of three valuable elements: fixed, place, and business. This type of test is integrated in most of the international tax treaties with the aim of providing sufficient guidance for the taxation of the international economic transactions or activities. This indicates that the focus of the permanent establishment enables the international investor to determine the amount he or she will pay as tax in relation to the concept of fixed establishment of the economic activity (Ault & Arnold, 2010).

Question Fourteen

Pension refers to a fixed amount or sum paid to an individual at regular course especially after the aspect of retirement in accordance to the contract of the employee. The payment of the pension by relevant employment entities focuses on the making of payments through regular installments. This is the main distinguishing feature between the aspect of pension and the concept of severance pay. Severance pay is offered to the employees, not in the aspect of regular installments, but lump sum. The main aspect of the pension is to motivate employees to remain loyal in the execution of their duties and obligations to the entities. Pensions are essential in the enhancement of the living condition of the employees following their dedication and commitment in handling of the duties and obligations of the organization. This indicates that pension is a form of appreciation to employees for their services to the business entity (Scha-fer, 2006).

Question Fifteen

In the aspect of appreciating employees for their services and commitment to the organization, companies or business entities have the opportunity to adopt two types of pension plans. These pension plans include a defined-benefit plan and defined-contribution pension plan. Defined-benefit pension plan refers to the aspect in which the employer guarantees definite amount or sum of benefit to the employee when he or she retires from the duties and obligations. This is effective regardless of the performance of the economic activity within the market and industry operation. On the other hand, defined-contribution pension plan occurs in the case of development or generation of predefined contributions for the employee. In this scenario of the pension plan, the amount or sum after retirement will adhere to the performance of the business entity or investment of the employers (Scha-fer, 2006).


Ault, H.J., & Arnold, B.J. (2010). Comparative income taxation: A structural analysis. S.l:

Kluwer Law International.

Gustafson, C.H., & Pugh, R.C. (1993). International income taxation: Code & regulations, selected sections. Chicago, Ill: Commerce Clearing House.

Scha-fer, A. (2006). International company taxation in the era of information and communication technologies: Issues and options for reform. Wiesbaden: Deutscher Universita-ts-Verlag.

Get Professional Assignment Help Cheaply

Buy Custom Essay

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently

Online Academic Help With Different Subjects


Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.


Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!


While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.


Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.


In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.


Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.


We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!


We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.


Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

  • When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
  • We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

  • The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
  • We will have a different writer write the paper from scratch.
  • Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment Help Service Works

1. Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2. Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3. Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4. Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

smile and order essay GET A PERFECT SCORE!!! smile and order essay Buy Custom Essay

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
error: Content is protected !!
Open chat
Need assignment help? You can contact our live agent via WhatsApp using +1 718 717 2861

Feel free to ask questions, clarifications, or discounts available when placing an order.
  +1 718 717 2861           + 44 161 818 7126           [email protected]
  +1 718 717 2861         [email protected]