Taxation by source and residence
In fact, countries in the world define their jurisdictions to tax with different standards. If a country taxes its residents, including individuals and corporations, on their worldwide income or capital, it means that the country defines its jurisdiction to tax according to the residence. Correspondingly, if a country taxes the income or capital arising within its border, it implies that the country defines its jurisdiction to tax in terms of the source. Generally, most of countries tax their residents on worldwide income and non-residents on sources of income arising within their borders.