Businesses benefit from tax treaties in several ways:
Reduced Tax Liability: By taking advantage of reduced withholding tax rates on dividends, interest, and royalties. Tax Credits: Allows businesses to claim tax credits for taxes paid in a foreign country, reducing overall tax liability. Tax Planning: Provides opportunities for strategic tax planning to minimize tax burdens. Legal Certainty: Offers legal certainty and protection against unexpected tax claims. Better Cash Flow: Improves cash flow by reducing the immediate tax outflow on cross-border payments.