What are tax treaties and how do they work?

What are tax treaties and how do they work?

Tax treaties are agreements between two countries to avoid double taxation and prevent tax evasion. They outline which country has taxing rights over various types of income.

Can you give me an example of a tax treaty?

Sure! For instance, the U.S. has tax treaties with many countries, like Canada, which helps determine how income earned in one country is taxed in the other.

How do tax treaties affect expatriates?

Tax treaties can significantly benefit expatriates by reducing their tax burden and clarifying their tax obligations in both countries.

What happens if a country doesn't have a tax treaty?

If there's no tax treaty, individuals may face double taxation on their income, as both countries may claim the right to tax it.

How can I find out if my country has a tax treaty with another country?

You can check the official government website of your country or consult with a tax professional for the most accurate information.