International tax rules apply to income companies earn from their overseas operations and sales. Tax treaties between countries determine which country collects tax revenue, and anti-avoidance rules are put in place to limit gaps companies use to minimize their global tax burden.
There are three general policy areas that impact the taxation of multinational businesses. These are tax treaties between countries and the withholding tax rates set in those treaties; rules that define what income will be taxed by the country where the headquarters is located; and rules to minimize tax avoidance by multinationals.
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