Double Taxation Agreement (DTA)

A Double Taxation Agreement (DTA) is a treaty between two countries that aims to prevent individuals and businesses from being taxed twice on the same income. It clarifies which country has the right to tax specific types of income, such as salaries, business profits, or investments. By establishing rules and tax rates, a DTA promotes cross-border trade and investment, reducing tax obstacles. Essentially, it ensures fair taxation and promotes economic cooperation between countries, helping taxpayers avoid double taxation and encouraging international economic activities.