Introduction to International Taxation

International taxation might sound irrelevant to you, but chances are you’ve unknowingly encountered it. Whether studying abroad, investing overseas, or even just traveling for an extended period, your activities may have international tax implications—surprising, isn’t it? Moreover, if we measure efficiency per capita by industry, international taxation is arguably one of the most lucrative fields (though there’s no official data to back this up). For instance, Apple saved RMB 100 billion in taxes over a decade using Ireland, and the entire scheme likely involved fewer than 20 people. Hard to imagine, right?

Before diving into this Introduction to International Taxation, let’s clear up some common misconceptions:

1. It’s not about mastering the local tax laws of every country (e.g., Chinese tax law, U.S. tax law).
2. Taxes are levied by nations (or regions), not international organizations. There’s no such thing as a "UN tax," "World Bank tax," or "World Cup tax."
3. Not all international transactions involve international taxation. For example, a Chinese factory exporting goods to Europe or the U.S. might only face domestic tax obligations.

So, what exactly is international taxation?