<h1>Revised Direct Tax Code: Treaty vs. Domestic Law Conflicts, Recent Rules Prevail but Favorable Options for Taxpayers Remain.</h1> The revised Direct Tax Code (DTC) addresses the interaction between Double Taxation Avoidance Agreements (DTAA) and domestic tax laws. Typically, DTAAs prevent double taxation by defining which country has the right to tax specific income, offering tax credits or exemptions in the other country. The DTC proposes that in conflicts between a treaty and domestic law, the most recent will prevail, raising concerns about treaty overrides and potential higher taxes on royalties and fees. However, the DTC maintains that the more beneficial option for taxpayers between domestic law and DTAA will apply, except in cases involving anti-avoidance rules, Controlled Foreign Corporation provisions, or Branch Profits Tax.