Iceland has several agreements on tax issues with other countries. Persons permanently residing and subject to an unlimited tax obligation in one of the contracting states may be entitled to exemption or reduction in the taxation of income and property, in accordance with the provisions of each agreement, without the income being otherwise doubly taxed. Each agreement is different and it is therefore necessary to review the agreement in question in order to determine where the tax debt of the person concerned is actually located and the taxes prescribed by the agreement. The provisions of tax treaties with other countries may result in a restriction of Icelandic tax law. Form mod. 21 (PDF, 264 KB) – RFI (right to a full or partial exemption from the Portuguese withholding tax) For contractual withholding tax relief and the repayment of the Turkish withholding tax, there are no separate forms. The refund of the Turkish withholding tax must be questioned by the relevant tax office. The release (reduction) provided by the double taxation agreement is due to a notification in the form of a certificate of residence sent by the non-resident to the debtor of the deduction. Double taxation is the collection of taxes by two or more jurisdictions on the same income (in the case of income taxes), assets (in case of capital taxes) or financial transactions (in the case of revenue taxes).
While the double taxation conventions provide for the exemption from double taxation, Hungary has only about 73. This means that Hungarian citizens who receive income from the 120 countries and territories with which Hungary does not have a contract will be taxed by Hungary, regardless of the tax that has already been paid elsewhere. For example, the double taxation contract with the United Kingdom provides for a period of 183 days during the German fiscal year (corresponding to the calendar year); For example, a UK citizen could work in Germany from 1 September to 31 May (9 months) and then claim to be exempt from German tax. Since agreements to avoid double taxation will guarantee the protection of the incomes of some countries, Cyprus has concluded 45 double taxation agreements and negotiates with many other countries. Under these agreements, a credit is normally accepted against the tax collected by the country in which the taxpayer is established for taxes collected in the other contracting country, resulting in the taxpayer not paying more than the higher of the two rates.