UN (United Nations) Model Tax Treaty

The UN Model Tax Treaty is a framework created by the United Nations to help countries negotiate agreements on how to tax cross-border income, like profits from businesses and employee salaries. It aims to prevent double taxation, where a person or business pays tax in two countries on the same income, and ensures that the taxing rights are fairly shared. This model is particularly relevant for developing countries, providing guidelines that promote international investment while safeguarding their tax revenues. Essentially, it facilitates smoother international economic relations and enhances clarity in tax obligations for individuals and businesses operating globally.