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Taxes

Reciprocity principle

Tax treaties are agreements between two countries that aim to facilitate trade and investment by reducing the double taxation of individuals and businesses. One of the key principles that guides these treaties is the concept of give-and-take, which refers to the exchange of tax privileges between countries. This is particularly important in cases where a taxpayer may be subject to taxation in both countries, and relief is granted under domestic law if the other country also provides similar relief. This principle of reciprocity is essential in ensuring a fair and balanced approach to taxation, both domestically and internationally.
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