Video: Worldwide Tax Systems

In this lesson, Nick Palazzolo, CPA, breaks down the intricacies of global taxation, establishing a clear distinction between worldwide and territorial tax systems. He unravels the complexities of how individuals and corporations are taxed on foreign income, emphasizing the crucial role of foreign tax credits in mitigating the potential double-taxation scenario. Throughout the lesson, Nick dives deep into the classification of income into various categories such as general, passive, and foreign branch income, dissecting how each category impacts the foreign tax credit limit. With a mix of straightforward explanations and practical examples, he examines specific cases such as foreign-derived intangible income, detailing how sales and services abroad align with U.S. tax implications. Nick effortlessly clarifies terms like GILTI and BEAT, providing a solid grasp of how these provisions prevent profit shifting to low-tax jurisdictions. By the end of the lesson, demystifying PFICs and Subpart F, Nick ensures a comprehensive understanding of the global tax landscape, all while maintaining an engaging and accessible delivery.