Tax Treaties

Tax treaties are formal agreements between two or more countries that aim to prevent double taxation of income and to establish rules for taxing cross-border income flows. These treaties typically outline which country has taxing rights over various forms of income, such as wages, dividends, interest, and capital gains. By clarifying the tax obligations of individuals and businesses engaged in cross-border activities, tax treaties promote international trade and investment by reducing the risk of being taxed on the same income in multiple jurisdictions. Additionally, they often include provisions for the exchange of information between governments to combat tax evasion and ensure compliance with tax laws.