Börsenlexikon: Double taxation agreement

A double taxation treaty (DTA) - the correct term is a treaty for the avoidance of double taxation - is a treaty under international law between two states that regulates the extent to which one state has the right of taxation for income earned in one of the two contracting states or for assets located in one of the two contracting states. A DTA is intended to prevent natural persons or legal entities who earn income in both states from being taxed in both states - i.e. twice.