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Tax treaties

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Business and Industry Services
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Jun 26, 2019
Is there a wide network of double tax treaties?

2 answers

Leon L.
Jul 02, 2019
You have to be aware of the fact, that Tax treaties represent an important aspect of the international tax rules of many countries. Over 3,000 bilateral income tax treaties are currently in effect, and the number is growing. The overwhelming majority of these treaties are based in large part on the United Nations Model Double Taxation Convention between Developed and Developing Countries1(United Nations Model Convention) and the Organisation for Economic Co-operation and Development Model Tax Convention on Income and on Capital (OECD Model). I have a large Case Study regarding this issue. Just let me know if you need it because the Study is about 300 pages.
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1 comm.
Jul 02, 2019
My professional answer is YES! There are thousands of double tax treaties world-wide. The UK is a perfect example. It has double tax treaties with more than 130 countries, making it one of the world's largest networks. In order to explain this, we have to answer the question: “What is the reason for double taxation?” It occurs when local legislation results in taxes being levied on the same income, capital gains, or company profits in more than one country. This can be mitigated through the use of double tax treaties or through unilateral relief, where no treaty exists or where a treaty does not cover the category of tax involved. The circumstances in which double taxation can occur are many and different. Just one example is an individual or company considered to be resident in more than one country and taxed in both. Another example of double tax treaties is India, which has joined 96 treaties to avoid double taxation and share information with a number of countries. Some of the countries are US, Mauritius, Singapore, Australia and the Netherlands. According to the Income Tax Act the taxpayer is allowed to choose what is more convenient for them – domestic law (ITA) or the tax treaty. A non-resident that demands treaty relief has to file tax returns in India and offer a tax residency certificate provided by the tax authority in its home country. The greatest benefits of all this system are: 1. getting the possibility for exchange of information and 2. including the list of measures to prevent fiscal evasion.
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Raymond Yang
Raymond Y.
Amber Stellingwerf
Amber S.
Leon Lacroix
Leon L.
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