4. In the event of a tax dispute, agreements can provide a two-way consultation mechanism and resolve the issues in dispute. Double taxation Conventions The treaty`s main objectives in preventing double taxation and preventing tax evasion are the promotion of economic cooperation between countries and the promotion of foreign investment. The text of Georgia`s contracts is based on the model of the OECD tax treaty, which distributes tax duties among the contracting parties. In particular, residents of a Contractant State who receive income from the other State party may be taxed, either in the State of origin or in the country of residence. In order to avoid double taxation, residents of a contracting state that earns income from the other state party are paid by tax in the source state. The DBA Treaty also regulates issues relating to the prevention of tax evasion and the implementation of internationally recognized tax exchange standards. The Dominion Government of India and the Dominion Government of Pakistan intend to enter into an agreement to avoid double taxation of income, which is levied in both Dominions in accordance with their respective laws: NOW, THEREFORE, the aforementioned governments agree, for example because the double taxation contract with the United Kingdom provides, for example, , a period of 183 days during the German fiscal year (which corresponds to the calendar year); For example, a UK citizen could work in Germany from 1 September to 31 May (9 months) and then claim to be exempt from German tax. Since double taxation agreements will provide protection for income from certain countries, foreign investors who wish to conduct domestic operations and obtain more information on the prevention of double taxation can contact our lawyers in Russia. Most Russian double taxation conventions contain provisions for the following elements that constitute taxable income, such as. B: Countries can reduce or avoid double taxation by granting or avoiding either exemption from the taxation of income from foreign sources or a foreign tax credit (FTC) for income taxes from foreign sources. In the event of a conflict between the provisions of the Income Tax Act or the Double Taxation Convention, their provisions apply.
In this way, the same income is taxed twice. The DBA imposes this double taxation by allowing the Singapore company to charge a tax credit of foreign tax on the same income.