Domestic taxation involves taxes imposed within a country on residents and transactions, while international taxation covers cross-border transactions between associated enterprises in different countries. The key difference is that domestic taxation aims to raise revenue domestically, while international taxation seeks to manage interactions between national tax systems. Double taxation can occur internationally when the same income is taxed in multiple countries, but double taxation avoidance agreements (DTAAS) are designed to reduce this and encourage cross-border trade and investment by clarifying tax treatment and allowing foreign tax credits.

1. PRESENTED BY:-
Suma. K. B.
2nd M.com
Under the guidance of
Sundar B. N.
Asst. Prof. & Course Co-ordinator
GFGCW, PG Studies in Commerce
Holenarasipura

2. TOPIC :-
DOMESTIC TAXATION V/S INTERNATIONAL TAXATION
 Introduction of tax
 Meaning of domestic tax
 Definition
 Meaning of international tax
 Difference between the domestic tax and international tax
 Double taxation
 Double taxation avoidance agreement
 Objective of DTAAs

4. A tax is compulsory financial charge or some
other types of levy imposed on a taxpayer (an
individual or legal entity ) by a governmental
organization in order to get governmental spending
and various public expenditures . A failure to pay,
along with evasion of resistance to taxation ,is public
expenditure . A failure to pay along with evasion of or
resistance to taxation ,
is punishable by low.

5. INTRODUCTION OF TAX
 Tax is a financial charges imposed on individual or
company by a CG and SG.
 Collected tax amt is used for building nation
(infrastructure and other development) to increase
arms and for other welfare related work.

6. MEANING OF DOMESTIC TAX
Domestic tax measure a tax chargeable
on profits or gains. Under the laws
of a territory in which an entity
is established, that is similar
to income tax corporation tax
(including a charge under part 35B).
DEFINITION:-
Domestic law applied at the
international level.

7. MEANING OF INTERNATIONAL TAX
It is a body of legal provision embelded in the tax laws of
each country to cover the tax aspects of “cross
border” transactions.
Global business has no border but
tax laws and rules will continue
to have a clear border.
Risk (double taxation) and
opportunity (reduction of total
tax liability).

8. DIFFERENCE BETWEEN DOMESTIC TAX AND
INTERNATIONAL TAX
DOMESTIC TAX INTERNATIONAL TAX
A domestic tax controlled transaction is a An international controlled transaction is
transaction between associated a transaction between associated
enterprises that are resident in the same enterprises in different tax jurisdictions.
tax jurisdiction.
Domestic double taxation arises when International double taxation arises when
comparable taxes are imposed within a comparable taxes are imposed in two or
federal state by sovereign tax jurisdiction more states on the same tax payer in
of equal rank. respect of the some taxable income or
capital.
Domestic tax the primary purpose of International taxation is to manage the
taxation is to raise revenue to meet huge cross of national tax system when
public expenditure. Confronted with international transaction.
It’s goal is to share the international tax ,
base by assigning tax, “prevent tax”
“avoidance” & “prevent double taxation”.

9. Equalization livying concept is not Equalization levying see 165A is
applicable for domestic taxation. Applicable for specified transaction in
international ( annual service provide >
Rs 100000)
Filing of returns u/s 139(1) is mandatory Return of filing is not mandatory if certain
(if income exceeds basic exemption cases when TDS has been deducted on
Limits) that income see 115A (5)

10. DOUBLE TAXATION
Where a taxpayer is resident in one country but has a
source of income situated in another country. It gives
rise to possible double taxation.
Double Taxation Avoidance Agreement
[DTAA]
The Double Taxation Avoidance Agreement or DTAA
is a tax treaty signed between India and another country
(or any two/ multiple countries ). So that taxpayer can
avoid paying double taxes on their income earned from
the source country as well as the resident country.

11. OBJECTIVES OF DTAAS
1. To encourage transfer of technology
2. To prevent tax avoidance , evasion , grant relief avail
tax credits.
3. To prevent discrimination between taxpayer.
4. To improve the co-operation between two different
taxing authorities.
5. To attract foreign investment by providing relief from
dual taxation.
6. To provide clarity on how certain cross border
transaction will be taxed.
7. To promote exchange of goods and services
movement of capital and person.

12. CONCLUSSION
To conclude we can say that the instrument of
taxation is of great significance on
 Increase the level of economic activities
 Reduce the income inequalities
 Promote economic growth