Common Contracts
1 similar Double Taxation Avoidance Agreement contracts
DOUBLE TAXATION AVOIDANCE AGREEMENT – AN OVERVIEWDouble Taxation Avoidance Agreement • September 19th, 2023
Multinational companies are operating across multiple countries/tax jurisdictions nowadays in the age of globalization. Many times they are supposed to pay taxes in two countries, one where they are registered and another where they are operating their businesses on the same income. This dual taxation hinders the flow of capital and demotivates the foreign investment. To avoid this, the two governments enter the treaties of double taxation avoidance agreement. Under double taxation avoidance agreement, an individual (shareholder) or company will either pay taxes to only one country ( source of income country) or will be eligible for the credit (Input tax credit to be given by the source country) on taxes paid by the resident country On the same income. To overcome difficulties faced by investors from different countries, in recent years, India entered into Double Taxation Avoidance Agreements with many countries through the Income Tax Act 1961, in the year 2001. The Double Taxation Avo
