Bilateral tax treaties ensure some consistency in the tax treatment of foreign-source income.

Question

Quizplus · Accepted Answer

Bilateral tax treaties are agreements between two countries that aim to avoid double taxation and ensure consistency in the tax treatment of foreign-source income. These treaties provide rules for determining which country has the right to tax specific types of income and can reduce the overall tax burden for taxpayers engaged in cross-border transactions. Therefore, bilateral tax treaties do ensure some consistency in the tax treatment of foreign-source income.

Bilateral Tax Treaties Ensure Some Consistency in the Tax Treatment