OECD Model Tax Convention

The OECD Model Tax Convention is a framework developed by the Organisation for Economic Co-operation and Development (OECD) to guide countries in creating agreements on how to tax cross-border income. It aims to prevent double taxation, where a person or business is taxed by two different countries on the same income. The convention provides a standard set of rules for taxation of various income types, such as dividends and royalties, promoting fair taxation and economic cooperation between countries. By following this model, nations can foster international trade and investment while reducing tax-related conflicts.