The India-UK DTAA: Simplifying Cross-Border Taxation
The Double Taxation Avoidance Agreement (DTAA) between India and the United Kingdom is a key framework designed to prevent the double taxation of income for individuals and entities operating in both countries. By providing clarity on tax liabilities, the agreement fosters smoother economic exchanges and ensures equitable taxation for taxpayers. In this blog, we explore the provisions, benefits, and practicalities of the dtaa between india and uk and how it affects cross-border taxpayers. What is DTAA? DTAA is a bilateral agreement aimed at ensuring taxpayers do not pay taxes on the same income in both countries. The India-UK DTAA plays a crucial role in facilitating cross-border trade, investment, and employment by specifying where and how income should be taxed. Key Provisions of the India-UK DTAA Tax Residency Rules : The treaty applies to individuals and entities classified as tax residents of either India or the UK. A Tax Residency Certificate (TRC) is mandatory...