DOUBLE TAXATION

Double taxation means the imposition of comparable taxes in two or more states on the same taxpayer in respect of the same income.

Countries may impose tax on the basis of: 1. The tax payer is resident within their jurisdiction 2. Nationality of the tax payer

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3. 4. 

Place of domicile and Centre of economic interest When these connecting factors are located in different jurisdictions double taxation may result

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Ghana has Double Taxation Agreement with the following countries: Britain
          

France Italy Germany Sweden The Gambia Sierra Leone Nigeria Australia Belgium Denmark South Africa

ADVANTAGES OF DOUBLE TAXATION TREATIES

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2.

3.

They create an environment of fiscal certainty which encourages trade and investments They protect international shipping and air transport activities They create machinery for administrative cocooperation between tax authorities of the contracting states.

ADVANTAGES OF DOUBLE TAXATION TREATIES

4.

5.

6.

They discourage the more obvious forms of discriminatory taxation of foreign nationals and enterprise. They also afford the exchange of information between the relevant tax authorities. They also help prevent international tax avoidance and evasion.