Tax Treaty Law

Tax treaty law governs agreements between countries to prevent double taxation of income earned by businesses operating across borders. When a corporation earns profits in one country but is based in another, tax treaties outline how much tax each country can collect on that income. These treaties aim to promote international trade and investment by clarifying tax obligations, reducing the risk of double taxation, and fostering cooperation between tax authorities. Ultimately, they help companies optimize their tax liabilities and support economic relations between nations.