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Tax treaty

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Tax treaty

  • This topic has 1 reply, 2 voices, and was last updated 11 months ago by John Moffat.
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  • June 6, 2024 at 8:43 am #706821
    sadafwaheed1
    Participant
    • Topics: 84
    • Replies: 32
    • ☆☆

    In NPV question . If let say 20% tax in country where we are investing 30 % in home country tax treaty exist and let’s say 1st 2 year exempt in investing country like in Yilandwe Co

    Are we going to pay addditional tax in our home country when net Cashflow is remitted .

    If yes then how much 10% ( difference of investing and home country tax ) or 30% since no tax was paid in investing country

    June 6, 2024 at 8:37 pm #706863
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    It would probably be just 10%, but in that sort of situation the question would have to make it clear what rules applied in the specific tax treaty.

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