The Double Taxation Convention (DBAA), also known as the tax convention, is a bilateral economic convention between two nations to avoid or eliminate double taxation of the same income in two countries. For example, the double taxation treaty with the United Kingdom provides for a period of 183 days during the German tax year (which corresponds to the calendar year); Thus, from 1 September to 31 May (9 months), a UK citizen could work in Germany and then apply to be exempt from German tax. Given that double taxation treaties will ensure the protection of the income of certain countries, the question is whether the amounts collected by the Japanese petronet group for the supply of equipment and materials at sea were taxable under the Indian Income Tax Act and the double taxation agreement between India and Japan. The Ruling Authority (Income Tax) decided that the Japanese company was required to pay direct taxes under the agreement. That`s why the company transferred the Supreme Court. It argued that the transactions took place outside the country. The contract was divisible and was therefore not taxable for offshore services and offshore deliveries. The government said it was a composite contract. The supply of goods, whether offshore or onshore, and the provision of services were due to the turnkey project. In the event of an objection between the provisions of the Income Tax Act or the Double Taxation Convention, the provisions of the latter shall have priority. The material in this article comes from the October 2011 edition of Vietnam Briefing Magazine, entitled “Vietnam`s International Taxation Agreements”, available as a PDF download from the Asia Briefing Bookstore.

In this issue, we insert Vietnamese free trade agreements and the importance of avoiding double taxation for Vietnamese investments. In the event of a direct contradiction between national tax legislation and the tax provisions of a DBAA, priority is given to the DBA ABA. However, national tax laws take precedence where the relevant tax obligations contained in the DBAA do not exist in Vietnam or where the tax rates in the agreement are higher than national rates. For example, if a signatory country is allowed to collect a type of tax that Vietnam does not recognize, Vietnamese tax laws apply. 5. Provisions on combating swearing-in: these include Article 9 (affiliated undertakings) and Article 26 (exchange of information). Under the Finance Act 2013, a person is not entitled to relief under the double taxation convention unless he presents a certificate of tax residence with reference to the deduction. To obtain a certificate of tax residence, an application must be submitted to the income tax authorities in Form 10FA (application for a certificate of residence for the purposes of an agreement under sections 90 and 90A of the Income Tax Act 1961). Once the application has been successfully processed, the certificate is issued in Form 10FB. While double taxation treaties provide for relief from double taxation, Hungary has only about 73. This means that Hungarian citizens who receive income from the approximately 120 countries and territories with which Hungary does not have an agreement are taxed by Hungary, regardless of taxes already paid elsewhere.

5. The Tribunal also clarified that a distinction was made between a commercial link and a permanent establishment. . . .