Double Taxation Agreements (DTA)

Double Taxation Agreements (DTA) are treaties between two countries designed to prevent individuals and businesses from being taxed twice on the same income. When a person earns income in one country but resides in another, DTA ensures that they either pay taxes in only one country or receive credits to offset the tax owed in their home country. This arrangement encourages cross-border trade and investment by providing tax certainty, promoting economic cooperation, and reducing the risk of tax evasion. Essentially, DTAs help streamline taxation and protect residents from unfair tax burdens.