About Tax Principles and Practices

1. Territorial Approach: Levies taxes on the income earned by firms that are incorporated in the host country, regardless of where the income was earned
2. Worldwide Approach: Focuses on the income earned by firms within the legal jurisdiction of the host country, not on the country of firm incorporation
3. Tax Deferral: Foreign subsidiaries of MNEs pay host-country corporate income taxes, but many parent countries defer claiming additional income taxes on that foreign-source income until it is remitted to the parent firm.
4. All above are correct.