Income Tax Treaty Benefits

Income Tax Treaties

Bilateral income tax treaties afford taxpayers engaged in commercial activities in multiple sovereign jurisdictions with important tax benefits. Such benefits include:

  • • Reduced withholding on remittances
  • • Administrative and operational simplicity
  • • Special tax dispute resolution facilities
  • • General double taxation relief
  • • Enhanced certainty of result

The world of tax treaties; while always complex with its specialized lexicon, internal logic, and interplay with signatory country’ tax laws; has seen a recent significant increase in this complexity. Specialized “limitation on benefits” articles first introduced with the US / Netherlands treaty led the way in this increase. Recent treaties have added benefit limitations related to tax transparent entities, and also benefit enhancement in the form of derivative benefits. NEOITG brings you closer to a full understanding of the workings of tax treaties, how benefits may be available or limited based on existing organizational structures, and the procedures which must be followed to secure benefits.