Elimination of double taxation: foreign tax paid may be deducted from domestic tax, subject to attributable tax limits. The Agreement requires reciprocal relief from double taxation by allowing a foreign tax deduction: each State permits deduction of tax paid in the other State from domestic tax on the same income or capital, limited so the deduction does not exceed the domestic tax attributable to that income or capital. Where income or capital is exempt under the Agreement, a State may nevertheless consider the exempted amount when calculating tax on the remaining taxable base; Lithuania's relief may be superseded by more favourable domestic law.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Elimination of double taxation: foreign tax paid may be deducted from domestic tax, subject to attributable tax limits.
The Agreement requires reciprocal relief from double taxation by allowing a foreign tax deduction: each State permits deduction of tax paid in the other State from domestic tax on the same income or capital, limited so the deduction does not exceed the domestic tax attributable to that income or capital. Where income or capital is exempt under the Agreement, a State may nevertheless consider the exempted amount when calculating tax on the remaining taxable base; Lithuania's relief may be superseded by more favourable domestic law.
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