Tax Treaties

Tax treaties are agreements between two countries that aim to avoid double taxation and prevent tax evasion. They outline which country has the right to tax specific types of income, such as wages or dividends. By clarifying tax responsibilities, treaties help individuals and businesses operating in multiple countries avoid being taxed twice on the same income. Additionally, they often reduce withholding tax rates on payments like interest or royalties, promoting international trade and investment. Overall, tax treaties create a clearer tax landscape for cross-border activities, benefiting governments and taxpayers alike.