Tax Jurisdiction | Worldwide Approach | Territorial Approach | Participation exemption system

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Worldwide approach. Under this approach, all income of a resident of a country or a company incorporated in a country is taxed by that country regardless of where the income is earned. In other words, foreign source income is taxed by the country of residence.
Territorial approach. Under this approach, only the income earned within the borders of the country (domestic source income) is taxed.

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