International tax

International tax is like sharing candy with your friends who live in other countries. When you earn money in your own country, like from selling lemonade on your street, you have to pay some of it to your country's government as tax. This is like sharing a part of your candy with your mom or dad.

Now, let's say you have a friend who lives in another country and they sold lemonade too. Their country also asks them to share a part of their candy with their government as tax. But sometimes, your friend's country might ask for more tax than your own country. This can make your friend sad because they will have less candy left than you after sharing.

That is why countries make special rules to decide how much tax someone should pay when they earn money in another country. This is called international tax. It helps make sure that everyone is paying a fair amount of tax and nobody is losing too much of their candy.

But sometimes, people can try to be sneaky and hide their candy or their money in another country to avoid paying tax. This is not fair, and it is against the rules. So, the different countries work together to make sure that everyone is following the rules and not trying to cheat.

So, just like when you share your candy with your friends, international tax is all about making sure everyone is being fair and following the rules when they earn money in different countries.