The taxation of both domestic and foreign source income is known as

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Taxation of both domestic and foreign source income is known as the worldwide approach. This approach taxes all income, regardless of its country of origin. Double taxation refers to the situation where the same income is taxed twice by two different countries. Effective vs. statutory refers to the difference between the tax rate that is written into law (statutory) and the actual tax rate that taxpayers pay (effective). A tax incentive is a policy that reduces the amount of tax that a taxpayer owes, typically to encourage certain types of behavior (e.g. investing in renewable energy).

The Taxation of Both Domestic and Foreign Source Income Is