International Tax Glossary — 31 Definitions

Clear explanations of key tax terms for expats, digital nomads and international investors.

183 Day Rule

Rule determining tax residency based on 183+ days in a country

Beps

Base Erosion and Profit Shifting — OECD framework against tax avoidance

Capital Gains Tax

Tax on profit from selling assets like stocks or property

Cfc Rules

Controlled Foreign Corporation rules preventing offshore profit shifting

Corporate Tax

Tax on company profits — rates and calculation methods

Digital Nomad Visa

Residency visa allowing remote workers to live and work abroad

Dividend Tax

Tax on shareholder distributions from company profits

Double Taxation

Being taxed twice on the same income in two jurisdictions

Exit Tax

Tax triggered when changing tax residency or citizenship

Flat Tax

Single uniform tax rate applied to all income levels

Foreign Tax Credit

Credit reducing home-country tax by taxes paid abroad

Gst

Goods and Services Tax — broad consumption tax like VAT

Holding Company

Company owning shares in subsidiaries, often for tax efficiency

Inheritance Tax

Tax on assets transferred at death (estate or inheritance tax)

Lump Sum Tax

Fixed annual tax based on lifestyle rather than income

Non Dom

Non-domicile status — pay tax only on income remitted to the UK

Offshore Company

Legal entity registered in a low-tax or zero-tax jurisdiction

Participation Exemption

Exemption on dividends/gains from qualifying subsidiaries

Permanent Establishment

Fixed business presence triggering local tax obligations

Personal Income Tax

Tax on individual earnings — salaries, freelance, investments

Progressive Tax

Tax system where rates increase with higher income brackets

Social Security

Mandatory contributions for pensions, healthcare and unemployment

Tax Haven

Jurisdiction with very low or zero tax rates for non-residents

Tax Residency

Legal determination of which country can tax your worldwide income

Tax Treaty

Bilateral agreement preventing double taxation between two countries

Territorial Taxation

System taxing only income earned within the country

Transfer Pricing

Rules governing transactions between related companies across borders

Value Added Tax

Consumption tax added at each stage of production and sale

Wealth Tax

Annual tax on total net assets above a threshold

Withholding Tax

Tax deducted at source on dividends, interest and royalties

Worldwide Taxation

System taxing residents on all income regardless of source country