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🇺🇸 Taxes – Start Here SH! | 🇸🇪 Skatter – Starta Här

 

Terminology

“Taxation Borders”

” Throughout the world, there are three general ways a country defines its “tax borders.” ” [taxfoundation.org/blog/how-countries-define-their-income-tax-borders-0/]

# 🇬🇧 English terminology 🇸🇪 Svenska termer 🇬🇧 Description 🇸🇪 Beskrivning
(1)

 

 Residence-based

 

 Hemvistprincipen, även domicilprincipen

 

 🇸🇪 “Hemvistprincipen, som även kallas domicilprincipen, innebär att den stat där en person är skatterättsligt bosatt beskattar all inkomst som personen har inom eller utom denna stat.

Den svenska beskattningen bygger på denna princip. En person som är obegränsat skattskyldig i Sverige är skattskyldig här för samtliga sina inkomster oavsett varifrån inkomsten kommer.” [Skv]

🇬🇧 A residence-based tax system is the most common model worldwide, where a country taxes its residents on their worldwide income, regardless of where the income was earned. The vast majority of countries use this system, while only a small number, including the United States and Eritrea, use a citizenship-based system. [google]
(2)

 

 Territorial taxation

 

 Källstatsprincipen

 

🇸🇪 Källstatsprincipen innebär att den stat som inkomsten härrör från beskattar inkomsten i fråga oavsett var den skattskyldige är skatterättsligt bosatt.

Sverige tillämpar källstatsprincipen när en begränsat skattskyldig person beskattas här för vissa inkomster med stark anknytning hit. Skattskyldigheten är begränsad till att omfatta inkomster som uttryckligen angetts av lagstiftaren. [Skv]

🇬🇧 A territorial tax system is a tax policy under which a country only taxes income earned within its borders. It is also known as a source-based system because a company’s profits are taxed by the country where the income was sourced, or earned. This contrasts with a worldwide tax system, which taxes a company’s income regardless of where it was earned. [google]
(3)

 

 Citizenship-based

 

 Nationalitetsprincipen

 

🇸🇪 Nationalitetsprincipen innebär att en stat beskattar sina medborgare oavsett var de uppehåller sig och oavsett varifrån deras inkomster härrör. USA tillämpar denna princip när det gäller de federala inkomstskatterna. [Skv]

🇬🇧 The United States 🇺🇸  is one of only two countries, along with Eritrea, that uses a citizenship-based taxation system. This system taxes the worldwide income of its citizens and permanent residents, regardless of where they live or where their income is earned. Most other nations use a residence-based system, which taxes people based on where they live. [google]
  • 🇸🇪 www4.skatteverket.se/rattsligvagledning/edition/2020.15/326353.html
  • en.wikipedia.org/wiki/International_taxation
  • taxfoundation.org/blog/how-countries-define-their-income-tax-borders-0/
    • Throughout the world, there are three general ways a country defines its “tax borders.”Under a citizen-based tax system, all income earned by citizens, whether they live in the country or not, is taxed in their home country. Even if they move outside of the country and earned all their income in a foreign country, it still is subject to tax in their home country.Countries with citizen-based taxation (such as the United States) provide a foreign-earned income exemption (in 2015 is was about $100,000). In addition, individuals receive a tax credit equal to the income tax they already paid on their income to a foreign country to prevent double taxation.Most countries have residence-based income taxes. Under this system, individuals must pay taxes on their worldwide income to the country in which they live, whether they are a citizen or not. If they move out of the country, they no longer have to pay tax to that country on any income they earn outside of that country.As with the citizen-based tax systems, residence-based systems provide tax credits equal to the income taxes an individual has already paid on their foreign source income.Some countries have what is called a territorial income tax. This type of tax only taxes the income earned inside the country, regardless of who earns it. Any income earned outside of the country, even by residents or citizens, is exempt from taxation. For the taxation of individuals, this type of system is also uncommon throughout the world.

 

Extract from en.wikipedia.org/wiki/International_taxation:

Country or territory Taxes local income Taxes foreign income of Notes and sources
residents non-resident citizens
 Finland (including  Åland[69]) Yes Yes No* Residence-based taxation.[6]
* Except former residents, temporarily.[70]
 France (including overseas departments[10]) Yes Yes No* Residence-based taxation.[6]

* Except in Monaco.[10]
 Italy Yes Yes No* Residence-based taxation.[6]

* Except in tax havens.[78]
 Mexico Yes Yes No* Residence-based taxation.[6]

* Except in tax havens, temporarily.[86]
 Portugal Yes Yes No* Residence-based taxation.[6]

* Except in tax havens, temporarily.[94]
 Spain Yes Yes No* Residence-based taxation.[6]

* Except in tax havens, temporarily.[105]
 Sweden Yes Yes No* Residence-based taxation.[6]

* Except former residents, temporarily.[108]
  Switzerland Yes Yes No Residence-based taxation.[6]
 United Kingdom Yes Yes No Residence-based taxation.[6]
 Eritrea Yes No Yes Territorial and citizenship-based taxation.[117][118] Foreign income of nonresident citizens is taxed at a reduced flat rate.[119]
 United States (including  Guam and the  Northern Mariana Islands[47]) Yes Yes Yes Residence-based and citizenship-based taxation. Nonresident citizens are taxed in the same manner as residents, but with a limited exemption for foreign income from work.[6][Note 10]

 

Nordic Co-operation

“The Nordic Council of Ministers and the Nordic Council are the main forums for official Nordic co-operation, which involves Denmark, Finland, Iceland, Norway, Sweden, the Faroe Islands, Greenland and Åland. Our vision is to make the Nordic region the most sustainable and integrated region in the world.”

More Taxation Concepts, Terminology

 

In discussions around taxes, especially in international taxation, there are several key terms that come up frequently. Here are some common ones along with their English equivalents or explanations:

  1. Skattehemvist (Tax residence)
    This refers to the concept of a person or entity being considered a resident for tax purposes in a specific country. Tax residence determines which country has the right to tax a person’s worldwide income.
  2. Dubbelbeskattning (Double taxation)
    Double taxation occurs when the same income is taxed by two different countries, typically because the individual or company is considered a tax resident in both countries or has income sourced from both.
  3. Skatteavtal (Tax treaty)
    A tax treaty is an agreement between two or more countries designed to prevent double taxation and to allocate taxing rights between the countries. These treaties typically determine where taxes should be paid on cross-border income.
  4. Källskatt (Withholding tax)
    Withholding tax is a tax that is deducted at the source of income, such as wages, dividends, or interest. The payer (e.g., employer or bank) withholds a portion of the payment and remits it directly to the tax authorities.
  5. Inkomstskatt (Income tax)
    Income tax is the tax levied on individuals or entities based on their income. This can include wages, business profits, and other sources of income.
  6. Moms (VAT or Value Added Tax)
    VAT is a consumption tax placed on a product whenever value is added at each stage of production and at the point of sale. This is common in many countries outside the U.S.
  7. Kapitalvinstskatt (Capital gains tax)
    Capital gains tax is the tax on the profit from the sale of an asset, such as stocks, real estate, or other investments.
  8. Skatteflykt (Tax avoidance)
    Tax avoidance refers to legally minimizing tax liability through strategic planning, such as taking advantage of deductions, exemptions, or tax loopholes.
  9. Skatteparadis (Tax haven)
    A tax haven is a country or jurisdiction with low or no taxes that attracts businesses and individuals seeking to reduce their tax liabilities.
  10. Överenskommelse om skatteincitament (Tax incentive agreement)
    This term refers to agreements made between governments or organizations that provide tax breaks or benefits to encourage certain economic behaviors, such as investing in a specific sector or region.
  11. F-skatt (F-tax or business tax)
    This is a Swedish tax classification for self-employed individuals and businesses, indicating that they are registered for tax purposes and are responsible for paying their own taxes.
  12. Skattepliktig inkomst (Taxable income)
    Taxable income refers to the amount of income that is subject to tax after deductions, exemptions, and other adjustments have been applied.
  13. Skattedeklaration (Tax declaration)
    A tax declaration is the document submitted by an individual or business to the tax authorities, reporting income, deductions, and taxes owed.
  14. Progressiv skatt (Progressive tax)
    A progressive tax system means that the tax rate increases as income increases. Higher-income individuals pay a higher percentage of their income in taxes.
  15. Skatteplanering (Tax planning)
    Tax planning involves structuring financial affairs in a way that legally minimizes tax liabilities, often by taking advantage of available deductions, credits, or tax treaties.
  16. Skatteåterbäring (Tax refund)
    A tax refund is the return of excess tax paid by an individual or company, typically after they file their tax return and the tax authorities determine that too much tax has been paid.

These are some of the common terms in the field of taxation, particularly when discussing international or cross-border tax issues. Would you like more information on any of these topics?