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:
“To be a woman and a writer
is double mischief, for
the world will slight her
who slights “the servile house,” and who would rather
make odes than beds.”
—Dilys Laing (1906–1960)
“I have no doubt that it was a principle they fought for, as much as our ancestors, and not to avoid a three-penny tax on their tea; and the results of this battle will be as important and memorable to those whom it concerns as those of the battle of Bunker Hill, at least.”
—Henry David Thoreau (1817–1862)
“What this country really needs is a good five-cent cigar.”
—State of Indiana, U.S. public relief program (1935-1943)