Tax sparing

Tax

1.

A particularly generous form of double tax relief which allows a tax credit in one country for a tax which has been "spared" - in other words not actually charged - in another country.

2.

A Euromarket term for debt that is covered by a double exemption from withholding tax under tax sparing, enabling lenders to offer favourable rates.

See also

• Euromarket
• Margin
• Tax relief
• Double taxation relief