Double-tax agreement

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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 ?
International Executive Service Corporation's senior trade adviser Rudy N Vogel, who works closely with the Industry and Commerce Ministry, said that the double tax agreement between the two countries which was signed in Washington in April was yet another spin off from Bahrain's free trade agreement with the US which would further help to strengthen ties between the two nations.
Double tax agreements proves to be of great help to businesses and individuals by preventing payment of taxed being made twice on income earned in the other country.
This agreement further strengthens our network of double tax agreements, and widens New Zealand s tax information exchange network, which is important in helping authorities prevent tax evasion and avoidance, he added.
Chapter 4 discusses different tax provisions in the global economy such as double tax agreements, trade agreements, transfer pricing etc.
EY tax partner Aaron Quintal and executive director David Snells article says New Zealands rights to tax foreign investors from TPP countries are overridden by double tax agreements, many of which require that a tax on foreigners from certain countries should apply to New Zealanders too if theres a conflict.
New Zealand has double tax agreements with all TPP countries apart from Peru and Brunei.
Mauritius is a member of the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Community (SADC), and currently has double tax agreements with 38 countries including 14 African countries; five more African agreements are in the pipeline, among them the Kenyan agreement.
Malta's tax legislation provides for relief from double taxation, whether through negotiated double tax agreements with a substantial number of countries worldwide, or through unilateral provisions.
Double tax agreements helped reduce tax impediments to trade and investment between countries and gave greater certainty about how cross-border business income would be taxed.
The seminar which was facilitated by Ebrahim Baeshen, partner and Suleman Mulla, Tax Director based in Jeddah, highlighted issues such as, the Department of Zakat and Income Tax (DZIT)'s approach to deductible items for Tax and Zakat purposes, Impact of the expanding network of Saudi's double tax agreements on business decisions and an interesting section on structuring of investments and importance of tax due diligences.
The OECD's model treaty, which has gone through several revisions over the years, still stands as the model upon which most of the current existing double tax agreements are based.
Chidambaram addressed these concerns at a news conference, saying the amendment had sought to clarify that tax authorities would now look at not only the tax residency requirement, but also enforce rules mandating these foreign investors are the beneficiaries of any investments under double tax agreements.