There are several methods to avoid double taxation, including:
Tax Treaties: Many countries have bilateral tax treaties that provide relief from double taxation by allowing tax credits or exemptions. Foreign Tax Credits: These are credits that a taxpayer can claim on their domestic tax return for taxes paid to a foreign government. Exemptions: Some countries provide exemptions for certain types of foreign income. Domestic Legislation: Some countries have domestic laws that offer relief from double taxation, such as the participation exemption for foreign-source dividends.