alleryStart learning →The usual treaty mechanism to eliminate double taxation requires each country to grant what?
ADeduction of turnover
BCredit for foreign tax
CRefund of all tax
DWaiver of filing
Answer & Solution
Correct answer: B. Credit for foreign tax
Treaties usually require each country to credit the tax of the other against the resident's own tax.
Keep practising Double Taxation
Browse all Double Taxation questions for CA Final, or explore more Taxation topics.
Related questions
One test of residence in India under the Income-tax Act is a stay of at least how many dayAfter which leaks did the EU and OECD seek automatic exchange of information on tax rulingWhich WTO agreement recognises advance rulings?Customs advance rulings commonly deal with which matter?A ruling may be modified or revoked because of which development?An advance ruling typically does not bind courts or whom else?A deemed paid credit covers taxes paid by which entity on dividends received?Singapore grants foreign tax credit only to whom?