How Tax Treaties Prevent Double Taxation

Lucas and Luna break down the complex world of international tax treaties, focusing on how the U.S. uses them to prevent double taxation. They explore a key example: a U.S.-based tech consultant working remotely from Portugal, and how the treaty between the two countries decides which government gets the tax. The hosts explain the 'tiebreaker' rules for residency, the concept of permanent establishment, and how treaties affect digital nomads and multinational corporations. They also discuss recent OECD reforms like the Pillar Two global minimum tax and what it means for treaty effectiveness. If you've ever wondered how countries avoid taxing the same income twice, this episode gives you the framework. #TaxTreaties #DoubleTaxation #InternationalTax #OECD #PillarTwo #GlobalMinimumTax #DigitalNomads #PermanentEstablishment #TaxResidency #USPortugalTreaty #RemoteWork #TaxPolicy #Economics #FexingoBusiness #BusinessPodcast #CorporateTax #FiscalPolicy #TaxLaw Keep every episode free: buymeacoffee.com/fexingo