Double Taxation Agreement

A Double Taxation Agreement (DTA) is a bilateral or multilateral treaty established between sovereign states to resolve issues involving double taxation of passive and active income. DTAs determine the tax rights of each country, aiming to prevent tax evasion and encourage cross-border trade and investment. These agreements are not a commercial entity or service provider but are instead legal frameworks used by individuals and corporations. Professional firms, such as law firms, accounting firms (e.g., the Big Four), and tax consultancies, provide advisory services to help clients navigate the complexities of these treaties.