Territorial tax system

A tax system that taxes domestic income but not foreign income. Territorial tax regimes are found in Hong Kong, France, Belgium, and the Netherlands.

Territorial Tax System

Any tax system that only taxes income earned in that country. For example, if one lives in Belgium, one only owes taxes on income earned in Belgium. If one conducts a great deal of business in Great Britain, income from that business is not taxed in Belgium (though it may be taxed by the UK). Only a few countries have territorial tax systems; prominent examples include Hong Kong and France.

References in periodicals archive ?

The good news is that the recently passed Republican tax reform package partially shifted the country to a territorial tax system.

AMERICA'S PUNISHING WORLDWIDE TAX SCHEME

international tax system into the 21st century by replacing our outdated worldwide system with a modernized territorial tax system, so that American businesses are not operating at a disadvantage next to their foreign competitors.

United States : More Benefits and Opportunities for the American Worker On the Way

This credit has been modified to reflect a move toward a territorial tax system.

First Look at the Tax Cuts and Jobs Act of 2017: Impact on Businesses

Juniper expects the new territorial tax system to provide lower cost access to nearly all global free cash flow on an ongoing basis.

Juniper sees Q1 EPS 22c-28c, consensus 42c

The business community has long called for lower rates for all businesses, full and immediate expensing, and a territorial tax system because we know these elements are the pro-growth reforms our economy needs to thrive.

Final passage of "Tax Cuts and Jobs Act" commented

The remainder includes the effects of the implementation of the territorial tax system and the remeasurement of US deferred tax assets at lower enacted corporate tax rates", Goldman said in a Securities and Exchange Commission filing yesterday.

Trump tax reforms could cost us $5bn - Goldman Sachs

In addition, as most OECD nations have moved to a territorial tax system, the United States has continued to tax the worldwide profits of its domestic corporations.

Promoting Tax Cuts for Economic Growth

One major feature of the tax bills moving through Congress at the end of 2017, as well as the proposals of all major Republican presidential candidates in recent years, is a provision that would create a territorial tax system for the United States.

Territorial Taxation: Choosing Among Imperfect Options

The Republicans also dream of a territorial tax system, whereby American corporations are taxed only on the income they generate in the US.

The proposed US tax reform is an exercise in doing nothing

And finally, the bill proposes a territorial tax system where U.

Tax Reform Begins Uncertain Journey: The first attempt at comprehensive tax reform since 1986 contains some notable provisions, including the repeal of the state and local tax deduction

This behavior implies that a shift to a territorial tax system will cause multinational corporations to repatriate more of the profits of their foreign subsidiaries rather than investing them abroad.

The tax reform agenda

Among the potential winners are companies that could repatriate overseas profits if the proposal to switch from a global to a territorial tax system is adopted, as outlined in the framework.