AGENCY

AGENCY -- A business that provides a particular service to a company (that are outside of the country where the agency is located). Dependent agency constitutes a permanent establishment for the other company and the income achieved through the agency is taxed on the income earned from the country where the agency is located whereas independent agency does not.

AGGREGATION

AGGREGATION -- Term used to denote the addingtogether of the taxpayer's income from all sources in order to determine the applicable tax rate for income tax purposes.

ALIEN, TAX TREATMENT OF

ALIEN, TAX TREATMENT OF -- A person who is not a citizen of the country in which he or she lives. In general, most countries do not distinguish between nationals and aliens for tax purposes; rather tax liabilityis based on residence and/or domicile.

ALIEN, TAX TREATMENT OF

ALIENATION OF INCOME -- Term generally used to describe the transfer of theright to receive income from a source while not necessarily transferring the ownership of that source tothe same person.

ALIENATION OF INCOME

ALIENATION OF INCOME -- Term generally used to describe the transfer of theright to receive income from a source while not necessarily transferring the ownership of that source tothe same person.

ALIENATION OF INCOME

ALIENATION OF INCOME -- Term generally used to describe the transfer of theright to receive income from a source while not necessarily transferring the ownership of that source tothe same person.

ALLOCATION

ALLOCATION -- The apportionment or assignment of income or expense for various tax purpose, e.g., between permanent establishments in various jurisdictions

ALLOWANCE

ALLOWANCE -- Deduction or exemptions generally made in computing incometaxes, inheritance and gift taxes and some forms of sales taxes.

AMORTIZATION

AMORTIZATION -- Processof writing off the cost of an intangible asset over its useful life.

AMORTIZATION METHOD

AMORTIZATION METHOD -- Method of computing a credit under a VAT regime where investment goods are purchased which have a useful life in the businessfor a period exceeding oneyear. The tax embodied in the price paid for the assetsmay be credited to the trader over a period of years corresponding to the life of the assets.
APA -- See: Advance Pricing Arrangement