Recent article from TaxPro Today mentioned one of the republican proposals under Business Taxes as "Shifting to a Territorial Tax System." What does this mean?
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Territorial Tax System
Any tax system that only taxes income earned in that country. For example, if one lives in Belgium, one only owes taxes on income earned in Belgium. If one conducts a great deal of business in Great Britain, income from that business is not taxed in Belgium (though it may be taxed by the UK). Only a few countries have territorial tax systems; prominent examples include Hong Kong and France.
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