Topeltarvestust

Topeltarvestust, also known as "double taxation," refers to the situation where an individual or entity is subject to taxation by two different jurisdictions on the same income or asset. This can occur when a person or company operates in multiple countries, has assets in different jurisdictions, or is a resident of one country but has income from another. Double taxation can lead to significant financial burdens and is a common concern in international business and personal finance.

The Convention on the Avoidance of Double Taxation (CADT) is a multilateral treaty designed to prevent double taxation by providing a framework for countries to agree on how taxes should be applied to income and assets. The CADT includes provisions for tax credits, exemptions, and other mechanisms to ensure that taxpayers are not unfairly burdened by taxes from multiple jurisdictions.

However, despite the CADT, double taxation can still occur due to differences in tax laws, enforcement practices, or the complexity of international tax treaties. In such cases, taxpayers may seek relief through bilateral or multilateral negotiations, or through the use of tax treaties and agreements between countries.

Double taxation is a significant issue in global finance and international trade, as it can deter investment, reduce economic growth, and create barriers to cross-border trade. Addressing double taxation requires ongoing cooperation and negotiation between countries to ensure fair and equitable tax treatment for individuals and businesses.