A Convention to Eliminate Double Taxation is a bilateral treaty that establishes how each country will tax cross-border income, how it will prevent tax avoidance and evasion, and how it will provide relief against double taxation.
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Peru and the United Kingdom reached an agreement to sign the Agreement to Eliminate Double Taxation (CDI). According to the Ministry of Economy and Finance (MEF), the negotiation would become official with the signing of a treaty in the coming months.
The announcement puts an end to several years of attempts between His Majesty’s Revenue and Customs (HMRC) and the MEF.
“Once signed, the CDI will be applicable in both countries once they have completed the procedures required by their internal legislation for it to come into force,” indicated the Peruvian ministry.
A DTA is a bilateral treaty that establishes how each country will tax cross-border income, how it will prevent tax avoidance and evasion, and how it will provide relief against double taxation.
This treaty establishes limits on how each country’s domestic legislation can tax cross-border income such as dividends, interest and royalties.
This treaty has been constantly requested by British and Peruvian companies. His signature will play an important role in increasing cross-border trade and investment, providing long-term certainty and stability to businesses on both sides and improving our bilateral relationship.
Written and digital press journalist, graduated from the Federico Villarreal National University (UNFV). Currently, in La República, where he writes about economics, with emphasis on hydrocarbons, mining and social conflict.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
