Model Tax Convention

Hello Connections,?

Let's have a glance at the Model Tax Convention.

Model Tax Convention is a model which is developed to provide a baseline while entering into tax treaties. These models bring standardization to tax treaties to some extent and are not legally binding, instead used as a reference point only.

There are 3 types of Model

• OECD Model
• UN Model
• US Model

The OECD Model advocates residence based taxation and is essentially made between two developed countries whereas the UN Model advocates source based taxation and is made between two developing countries.US Model applies in the United States only.

Happy Reading !