Double Taxation Treaty

A Double Taxation Treaty is an agreement between two countries designed to prevent individuals and businesses from being taxed twice on the same income. It clarifies which country has the right to tax certain types of income, such as earnings or profits, and often reduces withholding taxes on cross-border payments. The treaty aims to promote international trade and investment by providing certainty and fairness, ensuring taxpayers aren’t unfairly taxed twice on the same income, and helping countries cooperate on tax matters.