Cross-border Agreements
Jurisdictions may enter into agreements with other jurisdictions that provide for reciprocal tax exemption. Such provisions are common in an income . These reciprocal tax exemptions typically call for each contracting jurisdiction to exempt certain income of a resident of the other contracting jurisdiction.
Multi-jurisdictional agreements for tax exemption also exist. 20 of the U.S. states have entered into the Multistate Tax Compact that provides, among other things, that each member must grant a full credit for sales and use taxes paid to other states or subdivisions. The European Union members are all parties to the EU multi-country VAT harmonisation rules.
Read more about this topic: Tax Exemption
Famous quotes containing the word agreements:
“Were it not for the corruption and viciousness of degenerate men, there would be no ... necessity that men should separate from this great and natural community, and by positive agreements combine into smaller and divided associations.”
—John Locke (1632–1704)