International migration and taxation
Migration
Migration is the movement of people into a destination country which they are not natives of or where they do not possess citizenship in order to settle or reside there, especially as permanent residents or naturalized citizens, or to take-up employment as a migrant worker or temporarily as a foreign worker.
When people across national borders during their migration, they are called migrants or immigrants (from Latin: migrare, wanderer) from the perspective of the country which they enter. From the perspective of the country which they leave, they are called emigrant or outmigrant. Sociology designates immigration usually as migration (as well as emigration accordingly outward migration).
Immigrants are motivated to leave their …show more content…
There may be some implicit tax on remittances, however , in the form of a general financial services tax or on remittances in kind( such as food, clothing, electronics, items or vehicles). For example the Philippines and India impose a small stamp service tax on remittances. When Vietnam removed its 5 percent tax on remittances in 1997, it notice the flow of remittances through formal channels had increased. In Tajikistan, the removal of the state tax on cross border bank transactions in 2003 reportedly helped raise remittances from $78 million in 2002 to $256 million in 2003.
Similarly, forcing migrants to repatriate a certain part of their earning – often at unfavorable official exchange rates may be considered as a form of taxation on remittances. The rationale for such forced remittances is to ensure that temporary migrant’s workers do not stay on, but return home after the end of their contract. Similar programs are in place for lao workers in Thailand, for temporary Mexican farm workers in the united states and Canada and for the mine workers in south Africa.
Taxes can encourage Diaspora
Migration
Migration is the movement of people into a destination country which they are not natives of or where they do not possess citizenship in order to settle or reside there, especially as permanent residents or naturalized citizens, or to take-up employment as a migrant worker or temporarily as a foreign worker.
When people across national borders during their migration, they are called migrants or immigrants (from Latin: migrare, wanderer) from the perspective of the country which they enter. From the perspective of the country which they leave, they are called emigrant or outmigrant. Sociology designates immigration usually as migration (as well as emigration accordingly outward migration).
Immigrants are motivated to leave their …show more content…
There may be some implicit tax on remittances, however , in the form of a general financial services tax or on remittances in kind( such as food, clothing, electronics, items or vehicles). For example the Philippines and India impose a small stamp service tax on remittances. When Vietnam removed its 5 percent tax on remittances in 1997, it notice the flow of remittances through formal channels had increased. In Tajikistan, the removal of the state tax on cross border bank transactions in 2003 reportedly helped raise remittances from $78 million in 2002 to $256 million in 2003.
Similarly, forcing migrants to repatriate a certain part of their earning – often at unfavorable official exchange rates may be considered as a form of taxation on remittances. The rationale for such forced remittances is to ensure that temporary migrant’s workers do not stay on, but return home after the end of their contract. Similar programs are in place for lao workers in Thailand, for temporary Mexican farm workers in the united states and Canada and for the mine workers in south Africa.
Taxes can encourage Diaspora