What are tax treaties between countries?

What are tax treaties between countries?

Tax treaties are agreements between two or more countries to avoid double taxation and prevent tax evasion.

How do these treaties benefit individuals and businesses?

They provide clarity on tax obligations, reduce withholding taxes, and promote cross-border trade and investment.

Can you give an example of a specific tax treaty?

Sure! The U.S. has tax treaties with many countries, like Canada, which helps determine how income is taxed in both countries.

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

In that case, individuals and businesses may face double taxation, paying taxes in both countries on the same income.