Model Tax Convention on Income and on Capital

The Model Tax Convention on Income and on Capital is a set of international guidelines created by the OECD to help countries cooperate on taxing cross-border income and assets fairly. It provides standardized rules to prevent double taxation (paying tax on the same income in two countries) and tax evasion, while promoting fair allocation of taxing rights between countries. Essentially, it offers a framework to ensure that individuals and companies are taxed appropriately when earning income or holding assets across borders, fostering international economic cooperation and reducing tax-related disputes.