Double Taxation Treaties

Double Taxation Treaties (DTTs) are agreements between two countries to prevent the same income from being taxed twice. For example, if a person earns income in one country but resides in another, DTTs help determine which country gets to tax that income. This ensures fairness and encourages cross-border investment and trade, as individuals and businesses are less likely to be deterred by the risk of double taxation. Essentially, these treaties provide rules to allocate taxing rights, protecting taxpayers from being unfairly taxed by multiple jurisdictions on the same earnings.