Permanent establishment refers to a fixed place of business through which an enterprise carries out its business activities in a country other than its home country. It is a concept used in international taxation to determine the extent to which a company is subject to tax in a foreign country. A permanent establishment can take different forms, such as a branch, an office, a factory, a warehouse, or a workshop. It can also include construction sites or installations for exploration […]
A holding company is a type of business organization that owns and controls a group of subsidiary companies. The primary purpose of a holding company is to hold and manage the assets of its subsidiaries, such as shares of stock, real estate, intellectual property, and other investments. Unlike an operating company that engages in business activities, a holding company does not produce goods or services of its own. Instead, it holds ownership of the subsidiaries that engage in these activities. […]
Withholding tax, also known as retention tax, is a tax that is deducted or withheld from the payment made to a non-resident individual or a foreign entity by a resident entity, such as an employer, in the country where the payment is made. The tax is withheld at the source of the payment, meaning it is deducted from the payment before it is paid to the recipient. The purpose of withholding tax is to ensure that non-resident individuals and foreign […]
A capital gains tax is a tax on the profit that results from the sale of an asset, such as stocks, real estate, or artwork. The tax is based on the difference between the sale price of the asset and its original purchase price, known as the “capital gain.” For example, if an individual purchases a stock for $1,000 and sells it for $1,500, the capital gain would be $500. Depending on the tax laws of the individual’s country or […]
Taxation principles refer to the fundamental rules and concepts that guide the collection of taxes by governments. The following are the main principles of taxation: By adhering to these principles, governments can ensure that their tax systems are fair, efficient, and effective in raising revenue to fund public services and programs.