Page 8 - International Taxation IRS Training Guides

Tax Systems Overview
(Cont’d)

have a hybrid system with
 Most jurisdictions

components of
both worldwide and territorial systems.

some foreign income may be
 In a hybrid system,

currently taxed, some foreign income may be tax-

deferred, and some may be tax-exempt.

 The
U.S. Pre-TCJA system is a hybrid system.

 The U.S. taxation of international
transactions is
divided into “outbound”
and “inbound.”

6