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What is Tax Treaty

This is where two or more countries sign an agreement concerning taxes. Where there is a lot of people and businesses that inter-trade or work they will find themselves taxed by both countries.

To avoid double taxation the countries will have to agree who and how individuals and business will be taxed and how and when they can get exemption so that they are not double taxed. The system can be very complicated but there is set procedures that mean that double taxation can be avoided. Proper tax planning will remove an unnecessary burden and encourage trade between countries.

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Term created / updated 2006-05-20 08:04:50

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