Types Of Tax Agreement

India has a comprehensive agreement with 88 countries to avoid double taxation, 85 of which have entered into force. [15] This means that there are agreed tax rates and skill rates for certain types of income generated in one country for a country of taxation established in another country. Under India`s Income Tax Act of 1961, there are two provisions, Section 90 and Section 91, that provide taxpayers with special facilities to protect them from double taxation. Section 90 (bilateral facilitation) applies to tax payers who have paid tax to a country with which India has signed agreements to avoid double taxation, while Section 91 (unilateral relief) provides benefits to taxpayers who have paid taxes in a country with which India has not signed an agreement. Thus, India reduces both types of taxpayers. Prices vary from country to country. Most contracts provide that the profits of one company (sometimes defined in the contract) of one resident in the other country are taxed only if the profits are generated by a stable institution located in another country. For example, in the United States and India, tax treaties, if the person is established in both countries, the additional clause that is added to the argument would be whether the person has a permanent home, has a normal residence or is a national of a state. [19] However, many contracts deal separately with certain types of corporate profits (for example.

B directors` fees or income from the activities of athletes and artists). Such contracts also define what a stable institution (PE) is. Most, but not all, tax treaties follow the definition of the MOU in the OECD standard contract. [20] According to the OECD definition, an MOU is a fixed place of activity through which a company`s activity is carried out. [21] Some sites are specifically cited as examples of ES, including offices, workshops and others. Specific derogations from the definition of MEPs are also provided, for example. B a site where only preliminary or secondary activities are carried out (. B for example storage, purchase of goods or collection of information). TANGIBLE PROPERTY – Physical property, z.B.

personal property, property that differs from intangible property. TARIFF — As a general rule, the term “customs” refers to a list (schedule) or a system of taxes (taxes, customs duties, taxes) that are collected by countries for trade transactions (especially imports). FISCALITY — The OECD`s definition of a tax is a mandatory unpaid payment to the government. TAXABLE BASE — The thing or amount to which the tax rate applies, for example. B business income, personal income, real estate. TAXABLE EVENT – A term used to define an event that relates to a person`s tax liability. TAXABLE PERIOD — Taxes are collected by reference to a period known as a “taxable period.” Tax year TAXABLE YEAR — The period (usually 12 months) during which a person`s or adity`s tax liability is calculated. TAX AGENT — a term that refers to a tax advisor who assists the subject in fulfilling his or her statutory obligations.

FISCAL-AVOIDANCE – See: Tax evasion BEI SOURCE — See: Tax Administration at source — The body responsible for managing the tax legislation of a country or regional or local authority. TAX BASE — Taxable base BASE BASE – a term used in the United States to refer to an amount representing the taxpayer`s investment in an asset.