In order to promote global economic development and reduce the effects of double taxation on business, the Organisation for Economic Co-operation and Development (OECD) and the United Nations have developed models of the Income and Capital Convention. These models define the principles of a stable institution, distribute tax rights among nations, and form the basis for information exchange and dispute resolution between states parties. 1. This agreement does not affect the tax privileges of diplomatic or consular officials under the general rules of international law or the provisions of specific agreements. When two countries try to tax the same income, there are a number of mechanisms to provide tax relief so that you do not pay twice taxes. The first is whether the double taxation convention between the United Kingdom and the other country limits the right of either country to tax these revenues. Under UK regulations, he is not domiciled and, in the United Kingdom, he is taxable only on his income from the United Kingdom. Mark remains resident in Germany and is therefore taxable on his global income. The Double Taxation Convention tells Mark that the UK has the primary right to tax income and that if Germany also wants to tax it, the foreign tax credit method should be used to avoid double taxation.
Tax Information Guide: Africa`s Leading Economies 2018 Overview of the Tax and Investment Environment in 44 African countries, including Africa. The guide contains income tax rates, withholding tax, a list of double taxation agreements, information on other taxes, investment incentives and important business data. Published by Deloitte in May 2018. The purpose of the circular is to provide guidance and clarify the requirements and procedures for the various tax benefits granted to residents and non-residents who receive income from Nigeria. There are currently 14 income tax agreements to avoid double taxation in the Nigerian tax treaty. You may have to pay taxes in both the UK and another country if you live here and have income or profits abroad, or if you are a foreigner and have income or profits in the UK. This is called “double taxation.” We will explain how this can be done to you. 2. The competent authority endeavours to resolve the matter by mutual agreement with the competent authority of the other contracting State where the objection appears to be well founded and is unable to find a satisfactory solution to resolve the matter by mutual agreement with the competent authority of the other contracting State, in order to avoid taxation that is not in accordance with the agreement.