taxation treaties

Taxation treaties are agreements between countries that determine how income earned across borders is taxed. They prevent individuals or companies from being taxed twice on the same income (‘double taxation’) and clarify which country has the right to tax certain types of income, like dividends or profits. These treaties promote cross-border trade and investment by providing certainty and reducing tax barriers. They typically include rules for cooperation between tax authorities, sharing information to prevent tax evasion, and can also offer lower withholding tax rates on certain earnings.