IntroductionDouble taxation occurs when an individual or business acquiring income in a foreign country is required to pay taxes on that income in both the foreign country and the home country . For example, a U.S. company operating in a developing country, in the absence of a tax treaty between the two countries, might have to pay withholding tax to the government of the developing country, as well as corporate income tax to the government. of the United States (Howard, 2001, p. 259).The purpose of this article is to examine the merit of three basic systems, namely the exemption system, the credit system and the deduction system. These systems deal with the essence of tax relief from international double taxation. A discussion of various countries on their tax relief system practices and the rationale for using the system will be presented, followed by an analysis of which system is most beneficial to taxpayers. Finally, identifies the system preferred by countries and the rationale for adopting such a system. Systems adopted by countries to ease the burden of international double taxation Double taxation is always considered one of the most important problems in international taxation. As businesses increasingly move toward globalization and cross-border investment, double taxation is often cited as a major obstacle to free economic progress. There are basically three types of double taxation relief systems: the exemption system, the credit system and the reduction system. . The dynamics of globalization have led to increased knowledge and understanding of the different tax systems of countries around the world.• The exemption systemUnder exemption systems, a taxpayer of a country (the rest... ... middle of paper.... .. Tax Systems and Reforms in Europe, Routledge, New York Edwards, Chris 2003, “Tax Competition Spurs Globalization” USA Today, vol. 131, number 2694, March, p. , Malcolm 1989, Tax Reform in Developing Countries Duke University Press, DurhamHoward, Michael 2001, Public Sector Economics for Developing Countries, University Press of the West Indies, Barbados KPMG's Corporate Tax Rate Survey – January 2003 Li, Jinyan 1991, Taxation in the People's Republic of China, Praeger, New York Salinas, Javier G 2003, 'The OECD Initiative on Tax Competition: A Critique of Its Merits in the Global Market, Houston Journal of International Law, Vol 25, Issue 3, p. 531 Stephens, C Neil 1998, “A Progressive Analysis of the Effectiveness of Capital Import Neutrality”, Law. and International Trade Policy, Vol. 30. Problem. 1.p. 159.