Plain meaning
Rules or treaty mechanisms that reduce the risk that the same income is taxed twice by different jurisdictions.
Also called
relief from double taxation
double tax relief
Key points
- Relief can come through domestic rules, foreign tax credits, exemptions, deductions, or treaty provisions.
- Tax treaties often allocate taxing rights between the country of residence and the country where income arises.
- Relief is not automatic; the taxpayer must meet the conditions of the applicable domestic rule or treaty article.
- Timing, currency conversion, source of income, residence, and proof of foreign tax paid can affect the calculation.
Why it comes up
Double taxation relief is central to cross-border work, investment, pensions, business profits, and foreign tax credits.