Double-tax agreement

Double-tax agreement

Agreement between two countries that taxes paid abroad can be offset against domestic taxes levied on foreign dividends.

Double-Tax Agreement

An agreement between the governments of two countries stating that the taxes one pays on dividends in one country may be deducted from one's income from foreign dividends in the other country. This is especially important for multinational corporations and individuals who have overseas interests when one or both countries tax worldwide income. See also: Foreign Tax Credit, Double Taxation.
References in periodicals archive ?
The economic relationship, underpinned by an effective free trade agreement, has been boosted by the recent entry into force of a double-tax agreement.