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Taxes

Beneficial owner

In the world of finance, there exists a concept known as beneficial ownership. This refers to a situation where an individual, although not the legal owner of a property, still reaps the benefits of ownership. This term holds particular significance in the realm of tax treaties, as a resident of a tax treaty partner may be deprived of the advantages of reduced withholding tax rates if the beneficial owner of dividends or other earnings resides in a third country. Thus, understanding the concept of beneficial ownership is crucial in navigating the complexities of taxation.
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