Tax Treaty Network

About Tax Treaty Network

Tax treaties, also called double taxation agreements, prevent the same income from being taxed by two countries. The first modern tax treaty was between Austria and Prussia in 1899. The League of Nations developed the first model tax treaty in 1928. The OECD Model Tax Convention, first published in 1963, is the basis for most modern tax treaties. Over 3,000 bilateral tax treaties are in force worldwide. Tax treaties allocate taxing rights between countries, typically giving source countries reduced withholding rates and residence countries the primary right to tax. Tax treaties also include exchange of information provisions that help tax authorities detect evasion. The OECD base erosion and profit shifting project has led to updates of thousands of tax treaties through a multilateral instrument.