double taxation relief的意思|示意

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Double taxation relief refers to the measures taken by governments to reduce the double burden of taxation on both taxpayers and enterprises. Through the relief, the taxpayer or enterprise can reduce the total amount of taxes paid for income or property in two or more countries.

In general, double taxation relief can be divided into two types:

1. Tax exemption. This type of double taxation relief means that the taxpayer or enterprise does not need to pay taxes on the income or property obtained by the other country.

2. Tax credit. This type of double taxation relief means that the taxpayer or enterprise can deduct a certain amount of taxes on the income or property in the other country from the taxes in the current country.

For example, if a taxpayer in the United States earns income in the UK, he can apply for double taxation relief. If he takes advantage of tax exemption, he only needs to pay taxes on the income in the US; if he takes advantage of tax credit, he can deduct a certain amount of taxes on the income in the UK from the taxes in the US.

Double taxation relief can reduce the tax burden of taxpayers and enterprises, promote the movement of international capital, and effectively coordinate the balance between taxes in different countries. Therefore, countries can develop and formulate relevant policies to meet the needs of economic development.