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Bi lateral tax treaty

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Bi lateral tax treaty

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by John Moffat.
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  • June 2, 2014 at 8:16 pm #172993
    hasanali95
    Member
    • Topics: 239
    • Replies: 248
    • ☆☆☆

    If a bilateral tax treaty doesnt exist between the parents country and the subs country and the sub is paying tax @40% and parent at 20%,will the parent have to again pay 20% on the remittances it received?

    Thanks

    June 3, 2014 at 8:36 am #173137
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54833
    • ☆☆☆☆☆

    Yes. However, in the exam you would assume a bilateral tax treaty unless told otherwise.

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