Tax Treaty

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Also found in: Acronyms.

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 ?
Only income taxes are covered under a double taxation treaty.
The article then asks why the system of bilateral double taxation treaty networks flourished after the Second World War while the Dominion Income Tax Relief system disappeared.
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.
With an average 320 days of sunshine a year, this Mediterranean island has a double taxation treaty with the UK, so anyone retiring there pays only local tax of between three and five per cent on the money they bring in to the island.
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.
Also, the United States and Mexico recently agreed on a double taxation treaty for the first time, so we have to train a lot of people in that area, too.
Pakistan and Dubai have both signed a double taxation treaty, according to which investments made in Dubai by Pakistanis need to be disclosed in the wealth statements in Pakistan.
Double taxation treaty documents and other legal documents.