Concepts
Core concepts explain how salary, taxation, employment, and social systems are structured across countries.
They help interpret how income, costs, and contributions are defined and compared.
Income & Compensation
Gross income
Gross income refers to the total amount of income earned before taxes, social contributions..
Net income
Net income refers to the amount remaining after mandatory deductions..
Income vs earnings
Income and earnings are closely related but not identical concepts
Income vs wages
Income and wages are related but distinct concepts
Income vs compensation
Income and compensation are related but distinct concepts
Income vs benefits
Income and benefits are related but distinct concepts
Gross pay vs total labour cost
Gross pay and total labour cost describe different perspectives on remuneration
Taxes & Contributions
Income tax
Income tax is a mandatory levy imposed on income earned by individuals or entities
Social security
Social security refers to public systems established by law to provide protection against risks such as old age
Social contributions vs taxes
Social contributions and taxes are both mandatory payments to public authorities
Statutory vs effective rate
Statutory rates and effective rates describe two different ways of expressing tax or contribution burdens
Residence & Cross‑border
Tax residency
Tax residency determines which country has the primary right to tax an individual’s income under domestic law
Residence vs domicile
Residence and domicile are legal concepts used to determine an individual’s connection to a country
Residence vs employment location
Residence and employment location describe two different connections between a person and a country