The fundamental principle of the exemption method can be described as follows:

First the total income respectively assets of a taxpayer will be devided in foreign and domestic parts.

The right of taxation on each of these parts will be assigned either to the state of residence or to the state of source. These parts will be exempted from tax in the other state mentioned.

The following representations are available:

BLEBUL2A.GIF (310 Byte) Animated charts with explanations

BLEBUL2A.GIF (310 Byte) Further references

BLEENDE.GIF (1194 Byte)