tax treaty

tax treaty definition - business

tax treaty

An agreement between two or more taxing authorities with regard to sources of income and the rates at which these sources will be taxed. Tax treaties are designed to prevent double taxation of income earned in one country by a resident of another country.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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