Double taxation is due to the fact that the tax rule may vary from country to country: a DBA clarifies the rules of these and other similar situations in which double taxation may occur due to a conflict or ambiguity in the tax rules of both countries. The DBA defines the taxation rights of each country and provides specific provisions for tax credits, facilities or exemptions, in order to avoid double taxation of income from economic activities between the two countries. Indeed, a DBA can go far beyond and, in some situations (for example. B if the two contracting countries wish to promote trade between them and provide for tax saving credits), it may result in lower net taxation than that imposed by both countries; The recent change of DBA between India and Singapore is a good example. .