Why a double taxation agreement is good for you

Why a double taxation agreement is good for you

At first glance, it might seem to you that a double taxation agreement – DTA for short – could be disadvantageous for you. After all, both countries are thus in a somewhat closer contact and may also exchange data on financial transactions and tax incidents.

A DTA, however, can also provide you with more certainty, as this bilateral agreement regularly takes precedence over national (foreign tax) laws.

A look at the corresponding DTA is therefore always worthwhile for you if you pay less tax in another state. If the DTA here also indicates that you have to pay tax on your income in the “cheaper” state, you are very well protected by the DTA against claims from the “more expensive” state.

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