Net Direct Taxes and Double Taxation Avoidance

Double taxation can only arise in the case of direct taxes: taxes on income and wealth taxes, and adversely affect the international capital movement, the exchange of persons, goods, capital services and impedes the development of economic relations between countries. Given that the double taxation is a global problem that increases the fiscal pressure and diminishes the investment attractiveness, and it becomes necessary to improve the domestic tax system, we intend to analyze the imposition of revenues, by emphasizing the necessity, the measures and the methods undertaken to eliminate the double taxation. To this end, the analysis between two countries: of Romania and France has been carried out and we find that the application of the methods of avoiding double international taxation has contrary effects on the state of residence compared to the consequences of the company in question because the tax relief is advantageous for the company but constitutes a disadvantage for the granting State; but it is fundamental to choose a method because the amount of tax revenue, is maximum in the absence of a tax convention between the two signatory states. By international agreement, taxpayers are guaranteed that their income will not be subject to double taxation and are protected against fiscal discrimination in the Contracting State in which they operate.