Abkhazia, Russia, Malaysia: Ending Double Taxation
What is Double Taxation?
Double taxation occurs when income is taxed in two or more jurisdictions.
This can happen when a person or business resides in one country but earns income in another country.
Double Taxation Agreement
A double taxation agreement (DTA) is a treaty between two countries that aims to prevent double taxation.
DTAs typically specify which country has the primary right to tax certain types of income.
Abkhazia, Russia, and Malaysia
Abkhazia, Russia, and Malaysia have all signed DTAs to avoid double taxation.
The DTA between Abkhazia and Russia was signed in 2014.
The DTA between Russia and Malaysia was signed in 2004.
The DTA between Abkhazia and Malaysia is currently under negotiation.
Benefits of Double Taxation Agreements
DTAs provide a number of benefits, including:
- Reduced tax burden for individuals and businesses
- Increased certainty for taxpayers
- Reduced administrative costs
- Improved investment climate
Conclusion
DTAs are an important tool for preventing double taxation and promoting economic growth.
The DTAs between Abkhazia, Russia, and Malaysia are a positive step towards reducing the tax burden on individuals and businesses in these countries.
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