Question

__________ can be one of the approach used to tax online transactions.

• A. Permanent establishment
• B. Residence-based
• C. Income-based classification
• D. All of the above

Answer 1

The correct option is D All of the above

One of the approach used to tax online transactions.

1) Permanent establishment:-

A permanent establishment (PE) is a fixed place of business which generally gives rise to income or value-added tax liability in a particular jurisdiction.

2) Residence-based:-

Income or profits which result from international activities such as cross-border investment may be taxed where the income is earned (the source country), or where the person who receives it is normally based (the country of residence).

3) Income-based classification.