Double Tax Relief
Nearly all tax treaties provide a specific mechanism for eliminating it, but the risk of double taxation is still potentially present. This mechanism usually requires that each country grant a credit for the taxes of the other country to reduce the taxes of a resident of the country. The treaty may or may not provide mechanisms for limiting this credit, and may or may not limit the application of local law mechanisms to do the same.
Read more about this topic: Tax Treaty
Famous quotes containing the words double, tax and/or relief:
“The worst feature of this double consciousness is, that the two lives, of the understanding and of the soul, which we lead, really show very little relation to each other; never meet and measure each other: one prevails now, all buzz and din; and the other prevails then, all infinitude and paradise; and, with the progress of life, the two discover no greater disposition to reconcile themselves.”
—Ralph Waldo Emerson (1803–1882)
“Rumble thy bellyful! Spit, fire! Spout, rain!
Nor rain, wind, thunder, fire are my daughters.
I tax you not, you elements, with unkindness;
I never gave you kingdom, called you children.”
—William Shakespeare (1564–1616)
“Farmers in overalls and wide-brimmed straw hats lounge about the store on hot summer days, when the most common sound is the thump-thump-thump of a hound’s leg on the floor as he scratches contentedly. Oldtime hunters say that fleas are a hound’s salvation: his constant twisting and clawing in pursuit of the tormentors keeps his joints supple.”
—Administration in the State of Arka, U.S. public relief program (1935-1943)