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:
“Hollywood held this double lure for me, tremendous sums of money for work that required no more effort than a game of pinochle.”
—Ben Hecht (1893–1964)
“As a Tax-Paying Citizen of the United States I am entitled to a voice in Governmental affairs.... Having paid this unlawful Tax under written Protest for forty years, I am entitled to receive from the Treasury of “Uncle Sam” the full amount of both Principal and Interest.”
—Susan Pecker Fowler (1823–1911)
“If the king is in the palace, nobody looks at the walls. It is when he is gone, and the house is filled with grooms and gazers, that we turn from the people, to find relief in the majestic men that are suggested by the pictures and the architecture.”
—Ralph Waldo Emerson (1803–1882)