Model Tax Convention

The Model Tax Convention is a guideline developed by the Organisation for Economic Co-operation and Development (OECD) to help countries create agreements on how to tax cross-border income, like salary or business profits. It aims to prevent double taxation, where individuals or companies might be taxed by two different countries for the same income. By providing a standardized framework, it helps countries negotiate tax treaties that promote fair taxation and reduce tax evasion, ultimately fostering international trade and investment.