Tax Treaty

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Tax Treaty

A treaty between two countries governing double taxation and other matters when a company or individual owes taxes to both countries. Tax treaties are written because double taxation with no exceptions could result in a decrease in trade between the two countries. Most countries (except tax havens) have entered into tax treaties with their trading partners and others. A tax treaty is also called a bilateral tax agreement.
References in periodicals archive ?
Post death taxes Your estate may be taxed in both jurisdictions, although again a double taxation treaty may assist.
Only income taxes are covered under a double taxation treaty. In the case of the United States, Social Security tax is excluded, because it is a payroll tax.
The article then briefly examines threats to the sustainability of bilateral double taxation treaty networks: (a) electronic commerce; (b) financial engineering; (c) tax competition; (d) Directives by the European Union Commission and the interpretation of the Treaty on European Union ('EU Treaty') (3) by the European Court of Justice ('ECJ'); (e) transfer pricing problems; and (f) the lengthy time periods needed to modify an entire double taxation treaty network.
<p>"In accordance with....[an] agreement between the United States and Switzerland, the IRS will submit a request for administrative assistance pursuant to the existing US-Switzerland Double Taxation Treaty to the Swiss Federal Tax Administration (SFTA).
There is also a double taxation treaty in place with Britain, which ensures British retirees in Cyprus are safeguarded from paying tax in both countries.
Citgo was bought in 1990 without PDVSA bothering to negotiate a double taxation treaty with the US.
Tax Treaties: Yes; double taxation treaty with the United Kingdom
This knowledge may be helpful for visitors who are non-UK resident and unable to reclaim taxes via a double taxation treaty, or for those who would prefer to pay a small commission on the spot than reclaim the tax on their return.
10, 11 and 12, respectively) if (1) the ultimate beneficial owners of more than 30% of the corporation's voting stock are residents of that CS qualified for treaty benefits; and (2) the ultimate beneficial owners of more than 70% of the voting stock are (a) residents of that CS or (b) residents of a member of the KU, European Economic Area or parties to NAFTA, provided that such persons are entitled to benefits under a double taxation treaty between the CS from which the payment is made and the CS of residence providing a reduced withholding tax similar to (or exceeding) the one applicable under this treaty.(149)