National Treatment

Categories: International

The reason treasonous criminals can find safe haven in other countries is thanks to national treatment. National treatment is also the reason firms can set up their companies in tax-favorable countries abroad, and be taxed according to that country’s laws.

For instance, Ireland was for a long time considered a tax haven for foreign corporations, and became the home of giant corps like Apple, who avoids tens of billions of dollars in taxes from the American government by residing there.

National treatment is the principle in international law that says foreigners are to be treated with the same rights, and under the same laws, as the locals of the country that they’re in. You’ll find national treatment manly in international tax treaties, and in World Trade Organization agreements.

Of course, national treatment goes both ways. The “same rights” includes both the favorable and the unfavorable, so...don’t say we didn’t warn you.

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