Jane, a citizen of Country X, received a corporate dividend in the amount of £10,000 from a company in the U.K. Country X did not tax Jane's dividend. Country X is using what kind of approach toward foreign source income?

Question

Quizplus · Accepted Answer

Country X is using a territorial approach since they only tax income earned within their own borders, and the fact that they did not tax Jane's dividend income earned in the U.K. shows that they do not consider foreign source income to be taxable.

Jane, a Citizen of Country X, Received a Corporate Dividend