Cross-border commercial transactions are nothing new. Residents of one country trade not only in their own jurisdiction, but are increasingly trading with residents of other nations as well. This means that income being earned in one country is being received in another country. One significant impact of this kind of transaction can be seen on the way taxes are imposed because it leads to a possibility of double taxation. Double taxation creates a burden on the taxpayer and hinders trade. Thus, it becomes increasingly important for traders to analyse the tax regime of various jurisdictions to determine whether or not they would trade with a particular country.

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