@p5y9b4

Identity systems handle cross-border tax implications by issuing VCs for tax residency, income sources, and compliance status, anchored to blockchain-verified documentation. Zero-knowledge proofs (ZKPs) enable secure sharing of tax data with foreign authorities without exposing personal details. Smart contracts automate tax treaty eligibility checks and reporting, while audit trails ensure transparency. Users manage tax credentials via self-sovereign identity (SSI), streamlining cross-border filings.

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