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 ?
Companies established on the QFC's platform also benefit from an efficient double tax agreements network with 81 countries around the world.
We also have more double tax agreements (DTAA) and bilateral investment treaties with over 100 countries.
In addition, double tax agreements should be updated accordingly to recognize that certain fact patterns constitute a PE under a double tax agreement and consequently allocate taxing rights to the state in which the PE is located.
"Visa-free travel, family security, expanding businesses, preservation of wealth and double tax agreements are some of the few benefits that these individuals wish to attain when looking for an alternative citizenship," she said.
Chapter 4 discusses different tax provisions in the global economy such as double tax agreements, trade agreements, transfer pricing etc.
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.
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.
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.