also called DTT · tax treaty · double tax agreement · DTA · tax convention
An agreement between two countries that divides the right to tax cross-border income and provides relief from being taxed twice.
A deal between two countries that sorts out who gets to tax income crossing between them, so the same money is not taxed twice. It sets where you file and who has first claim. A totalization agreement does the same tidying-up job, but for social security contributions rather than income tax.
Someone earning from a company in one country while living in another worries they will be taxed in full on both ends. Whether a treaty exists between those two countries, and what it says, is what actually decides their combined bill and which tax office they answer to.
Whether a treaty exists between your countries, and what it says, can decide your total tax bill and where you file.
The difference is the whole point, so here is each one in a line.
Double taxation is being charged by two countries on the same income, and a double taxation treaty is the agreement that divides the taxing rights so you get relief, which a certificate of tax residency is the proof you claim it with.
A totalization agreement does the parallel job for social security so you do not pay contributions in both countries, and a certificate of coverage proves which country you are paying into.
Certificate of tax residency · Double taxation · Totalization agreement
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