tax treaty
Cross-border revenue agreement
A tax treaty is an agreement between two countries that determines how income, assets, or transactions are taxed when they cross borders.
Treaties typically prevent double taxation—being taxed by both countries on the same income—and establish which country has taxing rights over various types of earnings: The tax treaty between the US and UK reduced withholding on her dividends.
Treaties also facilitate information sharing between tax authorities and set rules for resolving disputes.
- bilateral agreementsContracts between two nations
- OECDInternational economic policy organization
- capital flowsMovement of investment money
- international lawRules governing relations between countries
- multinationalOperating across multiple countries
foreign income · reciprocal · cross-border · avoidance · bilateral · mutual agreement · negotiation · relief · repatriation · royalties · loopholes · fiscal policy · ratification · capital gains · diplomatic · offshore · dividends · arm's length