Elimination of double taxation: tax credit and exemption methods allow relief by crediting foreign tax or considering exempt income. Elimination of double taxation is effected by reciprocal foreign tax credit and exemption-with-progression mechanisms: each Contracting State permits a deduction from domestic tax equal to tax paid in the other State on income taxable there, limited to the portion of domestic tax attributable to that income; alternatively, where income is exempt in the other State under the Agreement, the State of residence may take the exempt income into account when calculating tax on the remaining income.