How can multinationals protect themselves from double taxation?

Multinationals can protect themselves from double taxation through a variety of methods. One method is through tax treaties between countries. Tax treaties are agreements signed between two countries that determine how income tax is to be split between the two countries. These treaties ensure that taxpayers do not have to pay the same tax to both countries. Another method of protection is for the company to structure their business operations in a way that takes advantage of tax havens. Tax havens are countries or regions that offer low or no taxes on certain types of income. To take advantage of these havens, businesses will often move their operations to these areas or set up subsidiary companies in the territories. Additionally, multinationals can set up their own taxation systems for international operations. This system can determine how taxes are paid between territories, allowing multinationals to more accurately predict and control their tax payments. By using one or more of these methods, multinationals can avoid double taxation and protect their profits.

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How can multinationals protect themselves from double taxation?

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