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It’s standard in Europe and many other countries to tax their “tax residents” on their worldwide income. The tricky part is that sometimes that external income
by macleginn 1y ago
It’s standard in Europe and many other countries to tax their “tax residents” on their worldwide income. The tricky part is that sometimes that external income is also taxed at source, but this is usually taken care of by tax treaties, which means that you pay the higher of the tax rates, but only once.
- shivasaxena 1y agoI live in europe, and I would be breaking the law if this would true. Would love to see some citations. It's only the US which taxes worldwide income. It's not true for rest for the world.
- aosaigh 1y agoYou may be breaking the law. It’s common to owe taxes on world wide income in your country of tax residence. I imagine this is the same across the EU but open to be corrected https://taxsummaries.pwc.com/ireland/individual/taxes-on-personal-income https://taxsummaries.pwc.com/ireland/individual/taxes-on-per...
- shivasaxena 1y agoOk, so it's only US and Ireland and maybe a few others that tax worldwide income. Still the common norm is that PIT is only levied on income earned in the country.
- aosaigh 1y agoIt’s not just Ireland, almost all (if not all?) EU counties do it: https://europa.eu/youreurope/citizens/work/taxes/income-taxes-abroad/index_en.htm https://europa.eu/youreurope/citizens/work/taxes/income-taxe... You mentioned Estonia in another comment - it might be the case that Estonia is a special case or has a scheme for attracting talent that doesn’t include worldwide tax
- shivasaxena 1y agoHappy to be corrected. I see now that most countries do tax worldwide income, just that most of the time they have DTA agreements so you can offset tax paid in other countries against your tax bill.
- alexanderchr 1y agoI believe most, if not all, European countries tax residents on worldwide employment and capital income.
- citrin_ru 1y agoMost countries tax worldwide income for the tax residents. Where the US is different is that US citizens need to report their income (and sometimes pay taxes) even if they don’t live in the US.