What is the OECD's Model Tax Convention?

The OECD’s Model Tax Convention is an international agreement on taxation between countries. It was created by the Organisation for Economic Co-operation and Development (OECD). The Model Tax Convention is designed to ensure that taxpayers do not face double taxation by two or more countries. It is also designed to prevent tax evasion and ensure tax collection in a fair manner. The Model Tax Convention contains provisions for bilateral agreement between two countries, setting out how they divide their rights and obligations in taxing income and capital. It also includes provisions to deal with exchange of information between countries, including the use of mutual assistance treaties between countries for tax purposes. In addition, the Model Tax Convention provides guidance on the allocation of taxing rights and eliminating double taxation in certain cases. The OECD Model Tax Convention is a widely accepted document for international tax and is used as a guide for countries when negotiating tax treaties. In North Carolina, the Department of Revenue uses the OECD Model Tax Convention to create tax treaties with other countries. The OECD Model Tax Convention has been adopted by a number of countries including the United States and is used as a guide in international tax matters in North Carolina.

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What is the OECD's Model Tax Convention?

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