The two basic approaches to national tax systems are
A) domestic and foreign.
B) worldwide and territorial.
C) high and low rates.
D) continental and global.

Question

Quizplus · Accepted Answer

The two basic approaches to national tax systems are worldwide and territorial. Worldwide systems tax their residents on their worldwide income, while territorial systems only tax income earned within the jurisdiction of the taxing authority. This is an important distinction, as it can have significant implications for individuals and companies in terms of compliance costs and tax burden.

The Two Basic Approaches to National Tax Systems Are