treaty shopping

főnév

full

treaty shopping

noun

Comparative law notes

Hungary

This term is used in its English form in Hungary.

Definitions of treaty shopping

English

the act of forming a company in a country where the owners do not live in order to benefit from a double taxation treaty (=an agreement between two countries to prevent taxpayers being liable for tax on the same amount under both tax systems) between the home country and the other country

They are treaty shopping by taking advantage of a tax treaty which the US has negotiated.