INTM345410 - DT applications and claims: Overview of DT Agreements

How double taxation arises

»Ê¹ÚÌåÓýapp taxation laws of most countries have the same basic common features that

  • all income arising in a country is taxed in that country regardless of where the beneficial owner lives
  • a resident of a country is taxed on all income he receives regardless of where it arises

For example: An individual living in Spain receives a pension from the UK. »Ê¹ÚÌåÓýappre is UK tax deducted from it because it has arisen in the UK and the individual pays tax on it in Spain because he or she lives there.