What does TTFI mean in UNCLASSIFIED

Territorial Taxation for Individuals (TTFI) is an approach to taxation that imposes taxes based on the location of the individual instead of their citizenship or residence status. This allows governments to collect taxes from people who may not normally be liable for taxes in their home country but are working, studying, or living in another country.

TTFI affects all individuals who may have taxable income within a territorial jurisdiction where they do not reside. This includes those who study abroad, who work overseas, or even those who are simply visiting temporarily.

Under TTFI, each individual's tax rate is based on their current location rather than where they are domiciled. Income earned within a certain jurisdiction will be taxed according to the laws of that jurisdiction rather than of the individual's home country.

One of the main benefits of TTFI is that it can make taxes much more efficient compared to traditional methods by relying less on complex residency rules. It also allows countries to better enforce rules against international tax avoidance and evasion since income earned outside of a person's home jurisdiction cannot be ignored or overlooked.

One potential downside to TTFI could be increased paperwork as individuals have to provide additional records of past income in order to properly comply with taxation laws in other countries where they may have had sources of income while abroad. Additionally, this can result in double-taxation if an individual has already paid taxes in their home country and then must pay again when they return with income earned while abroad and liable under territorial taxation policies.