Tax bilateral agreement between member states ()
DESCRIPTION: A tax bilateral agreement, also called a clearing trade or side deal, refers to an agreement between parties or states on the field of taxation; the overall scope of the agreement varies depending on the subject and interests of the parties/states involved.
eira:ABBhttp://data.europa.eu/dr8/LegalAgreementContract
dct:modified2023-07-26
dct:identifierhttps://ec.europa.eu/taxation_customs/business/tax-cooperation-control/administrative-cooperation/enhanced-administrative-cooperation-field-direct-taxation_en
dct:titleTax bilateral agreement between member states
dct:descriptionA Double Taxation Treaty (DTT) is a bilateral agreement between two countries that aims to prevent the same income, profits, gains or property from being taxed twice. It is a key instrument for promoting economic exchange and investment between countries by mitigating the double tax burden that can occur when the same income is taxable in both the source and the residence country.
dct:publisherEuropean Commission
dct:sourcehttps://ec.europa.eu/taxation_customs/business/tax-cooperation-control/administrative-cooperation/enhanced-administrative-cooperation-field-direct-taxation_en
skos:example1. A company based in Germany generates profits in France. Without a DTT, the company would have to pay taxes on these profits in both countries. However, the DTT between Germany and France prevents this double taxation.,2. An individual living in Spain but working in Portugal. Without a DTT, this individual would be liable to pay taxes on their income in both Spain and Portugal. However, the DTT between Spain and Portugal ensures that the individual only pays tax once.
eira:concepteira:SolutionBuildingBlock
skos:noteDouble Taxation Treaties are designed to protect against the risk of double taxation where the same income is taxable in two countries. They provide for the exchange of information between tax administrations, help them to better enforce their tax laws and ensure that taxpayers do not evade their obligations. The treaties also often include provisions for reducing withholding taxes.
eira:viewLV-Legal Agreements