International Taxation & Double Taxation Avoidance Agreements
Cross-border transactions are governed by domestic tax law and international tax treaties. International taxation requires careful evaluation of residential status, source of income, permanent establishment (PE) exposure, transfer pricing, and withholding tax obligations.
Key areas include:
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Taxability of foreign income
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Application of DTAA provisions
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Determination of residential status
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Permanent Establishment analysis
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Withholding tax compliance
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Foreign tax credit claims
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Cross-border service taxation
DTAA provisions help eliminate double taxation by allowing tax credit or exemption. Proper interpretation of treaty articles, especially relating to business income, royalties, fees for technical services, and capital gains, is essential.
With increasing global transactions and regulatory scrutiny, structured international tax compliance ensures risk mitigation and alignment with evolving global standards.