Withholding Tax Agreement Meaning

Bad debts can generally be treated as losses and written off a reserve for such debts. BALANCE SHEET — Preparation of the financial situation of an enterprise at a given time. The statement shows the company`s assets in one column and its liabilities and the owner`s equity in another column. COMPENSATION – A payment, usually from one or more members to another, to adjust the proportionate shares of members` contributions, which increases the value of the payer`s contributions and reduces the value of the recipient`s contributions by the amount of the payment under the CCA (Cost Contribution Agreements). BANKING SECRECY PROVISIONS – Provisions requiring a bank to refuse to disclose information about its customers to third parties, including tax authorities. BAPA — Early bilateral settlement. Also called MAP APA. BASIC BUSINESS – A company located in a country with a low tax or non-tax rate (e.g. B places of taxation) which is used to secure income and reduce taxes in the taxpayer`s country of origin.

Core companies carry out certain activities on behalf of affiliates in high-tax countries (e.g.B. management services) or are used to channel certain income such as dividends, interest, royalties and fees. BASIC COSTS – A term used in capital gains tax legislation to refer to the cost of an asset to an owner. OWNER`S TITLES – shares, bonds, etc., where ownership can be transferred from one holder to another without the transaction being known from the registration by the issuing company, that is, the ownership passes with delivery. BENEFICIAL OWNER – A person who enjoys the true benefits of ownership even if the title deed is under a different name. Often important in tax treaties, as residents of a tax treaty, partners may be denied the benefits of certain reduced withholding tax rates if the beneficial owner of the dividends, etc. resides in a third country. .