Cyprus has 45 double taxation agreements and is negotiating with many other countries. Under these agreements, a credit is normally accepted against the tax collected by the country in which the taxpayer is established for taxes collected in the other contracting country, resulting in the taxpayer not paying more than the higher of the two rates. Some contracts provide for an additional tax credit that would otherwise have been due had it not been provided for incentives in the other country, which would have resulted in an exemption or tax reduction. In this case, the company was founded in Japan. It formed a consortium with four other companies and entered into an agreement with an Indian company, Petronet LNG Ltd, for the construction of a liquefied natural gas and degassing plant in Gujarat. Each member of the consortium should receive separate payments. The contract included offshore procurement, offshore services, land supply, onshore services, construction and construction. The price was due for deliveries and offshore services in U.S. dollars, while the price of onshore supply as well as services, construction and assembly were partly in dollars and rupees. According to a study carried out by Business Europe in 2013, double taxation remains a problem for European SMEs and a barrier to cross-border trade and investment. [9] [10] Problems include limiting the ability to deduct interest, foreign tax credits, stable settlement issues, and differences in qualifications or interpretations. Germany and Italy have been identified as the Member States where most cases of double taxation have been identified. Dear Sir, we had provided services to one of our customers in Zambia and our bill to the tune of Now we learned that the customer said he was going to pay after tax deduction.
However, we are also in favour of paying income tax for the revenues of the above service. In this case, we have to pay twice as much tax for the same income. Can you advise us to avoid such double taxation? I want to know how to deal with India`s DTAA In recent years, the development of foreign investment by Chinese companies has grown rapidly and has grown quite influentially. As a result, cross-border tax treatment is becoming one of China`s major financial and commercial projects, and cross-border tax problems are growing. In order to solve these problems, multilateral tax treaties between countries that can legally help businesses on both sides avoid double taxation and find solutions to tax issues are put in place.