Are you confused about inbound taxation versus outbound taxation?
Think of “inbound taxation” as those transactions which come from outside of and into the U.S.- an inbound transaction- is specifically those of foreign persons (non U.S. persons) with U.S. income or activities.
“Outbound taxation” is the system by which the U.S. taxes its citizens and resident aliens on all of their worldwide income on a system of residence-based taxation and on their non-U.S. income or activities. In simpler terms, a U.S. citizen will be taxed on income outside of the U.S as well as within the U.S.
To learn more, please visit our international tax page: https://abfinwright.com/international-tax-services/