“Worldwide” can mean many things. It can refer to a political subdivision or even the international political body as a whole. The word “widely” as it relates to the English language can also mean “broadly seen.” In this article I will use the word “widely” to mean the world as a whole. “Widely” as a meaning of the English language refers to the entire world.
U.S. English only has two senses: broadly and specifically. In the broadest sense, worldwide means “all over the world.” Broadly used is still the correct spelling without the hyphen. In the second sense, though, the word is used more specifically to mean “all over the world at the same time.” This second sense is often used in official documents, such as tax reports. In this sense “widely” refers to the entire new territorial tax system.
To simplify the above discussion, I’ll assume that “the entire world” refers to the entire new territorial tax system. I’ll also assume that “the world” refers to all countries of the world, whether they are member states of the World Trade Organization (WTO) or not. That means “the entire world” refers to all countries with currencies that can be freely traded on the world market. It also means “all people” in the sense of everyone being able to buy and sell in the global market.
When you do your research on how to write a Worldwide gross income tax return, you learn that you need to account for the income you earn outside your country of residence. Now you know why it’s necessary to account for “income earned outside the United States.” You also know that your worldwide taxable income includes your income from any country in which you have any form of worldwide business dealings. Now let’s take a look at some ways in which you would treat your worldwide taxable income under the new territorial tax system.
Under the new tax system, there will be two basic kinds of entities for which worldwide taxable income is taxable: A U.S. citizen who have any form of worldwide business transactions, and A non-resident alien who is a United States citizen or green card holder. Business income is subject to tax under both types of entities. However, dividends received by a non-resident alien person from an international business can be treated as U.S. taxable income if certain requirements are met. Similarly, dividends paid by a U.S. citizen to a non-resident alien shareholder of a corporation are subject to U.S. tax. If a person has both U.S. citizenship and non-residency status, he or she can also have both types of status and use them to reduce his or her worldwide taxable income.
There are several other special provisions under the worldwide tax system. The rules regarding the double taxation of dividends paid by dividends will be different in each country. However, most countries will treat dividends that are paid offshore as ordinary income. In order to take advantage of these special provisions, you will have to consult with an experienced CPA. You should only do this if you are well aware of all the tax laws for the country in which you are working.
