Tax stay is fundamental to the issues of the conventions against double taxation, as it determines the application of international conventions and the taxing power of the countries concerned. (h) the term „international traffic“: any transport by boat or aircraft operated by a company that has its effective place of administration in a contracting state, unless the vessel or aircraft is operated only between premises located in another contracting state; This Convention does not affect the tax privileges granted to members of diplomatic or permanent missions or consular missions in accordance with the general rules of international law or the provisions of specific agreements. There are provisions that protect nationals and businesses in one country from discriminatory taxation in the other country (Article 25), as well as for consultations and exchange of information between the tax authorities of the two countries (Articles 26 and 27). The taxation of dividends in Italy and the United Kingdom can be applied under the following system: at a tax rate of 5%, if the economic beneficiary holds at least 10% of the social capital in the payment of the company`s dividends and, in all other cases, at 15%. The abolition of double taxation is done through a tax credit in the United Kingdom and in the form of a tax exemption in Italy. For more information on the double taxation agreement with the UK, you can also contact our law firm in Italy. In particular, by analysing in detail specific cases and international agreements between Italy and other countries, we give advice on how to fulfill their tax obligations in the country where they work or in their country of residence for tax purposes, which will avoid sanctions (8) When, due to a special relationship between the payer and the actual beneficiary or between them and another person , the amount of interest paid exceeds the amount of interest paid for any reason. which would have been agreed by the payer and the actual beneficiary in the absence of such a report, the provisions of this section apply only to the amount stated last. In this case, the excess portion of the payments remains taxable under the legislation of each contracting state, taking due account of the other provisions of this Convention.