Double taxation is the simultaneous imposition of the same taxes in different countries. At the same time, they distinguish between economic international double taxation (when two completely different subjects are taxed in relation to the same income) and legal international double taxation (when the same income of one subject is taxed by more than one state).
Instructions
Step 1
In order to avoid double taxation, special intergovernmental agreements are concluded. Typically, they apply to taxes levied on profits, capital or property. At the same time, the agreements do not address the problems of indirect taxation, and also do not apply to taxes such as value added or sales taxes, taxes that reduce financial indicators of profitability (these are sales and advertising taxes, as well as other taxes included in the costs).
Step 2
The main international agreements aimed at avoiding double taxation are grouped according to the following scheme:
- agreements in relation to taxes on capital and income;
- agreements in relation to taxes on property and income;
- agreements in relation to social taxes and social security contributions;
- agreements in the field of transport.
Step 3
With regard to other taxes of foreign countries that are not subject to agreements that are aimed at avoiding double taxation (customs duties, various municipal taxes, indirect taxes), the only thing that a separate state can do for its own individuals and legal entities is to provide them with a special national or most favored nation treatment.
Step 4
National treatment is the most widely used. It assumes equality of subjects of national and foreign law in the field of taxation. This regime manifests itself in two aspects: in the tax status of subjects of foreign rights and in more important elements of individual tax liabilities.
Step 5
In the event that a taxpayer receives confirmation of the status of a resident in Russia, then only the income taxation regimes of our state will apply to him. At the same time, tax legislation from another state with which an agreement was concluded to avoid double taxation does not in any way apply to any resident of the Russian Federation.
