Tax discrimination against non-residents of a country

Active prejudice towards taxable non-residents
Preferential treatment towards residents against non-residents regarding taxes

Nature

Countries may introduce special taxes which are theoretically applicable to both resident and non-resident enterprises but which in practice impinge almost exclusively on the profits of the non-resident. Examples are: special taxes on profits when dividends are not paid within the country; special taxes on profits when a certain proportion of shares are not owned by residents; special tax on that part of the profits remitted out of the country; denial to non-resident companies of any rebate of tax on profits.

Claim

Tax discrimination against non-residents is a pressing injustice that undermines fairness and equity in global economies. It perpetuates inequality, penalizing individuals who contribute to a country’s economy without reaping the same benefits as residents. This discriminatory practice stifles international collaboration, discourages investment, and fosters resentment. Every individual, regardless of residency, deserves equal treatment under tax laws. Addressing this issue is crucial for promoting global fairness, economic growth, and fostering a more inclusive world.

Counter-claim

Tax discrimination against non-residents is an exaggerated concern that distracts from more pressing issues. Countries have the right to establish tax policies that reflect their economic needs and priorities. Non-residents often benefit from public services without contributing, making it reasonable for nations to impose higher taxes. Focusing on this issue diverts attention from critical global challenges like poverty and climate change, which require urgent action and collaboration. Let’s prioritize what truly matters.