<P> Many countries have entered into tax treaties ( also called double tax agreements , or DTAs ) with other countries to avoid or mitigate double taxation . Such treaties may cover a range of taxes including income taxes , inheritance taxes , value added taxes , or other taxes . Besides bilateral treaties , multilateral treaties are also in place . For example , European Union ( EU ) countries are parties to a multilateral agreement with respect to value added taxes under auspices of the EU , while a joint treaty on mutual administrative assistance of the Council of Europe and the Organisation for Economic Co-operation and Development ( OECD ) is open to all countries . Tax treaties tend to reduce taxes of one treaty country for residents of the other treaty country to reduce double taxation of the same income . </P>
<P> Many countries have entered into tax treaties ( also called double tax agreements , or DTAs ) with other countries to avoid or mitigate double taxation . Such treaties may cover a range of taxes including income taxes , inheritance taxes , value added taxes , or other taxes . Besides bilateral treaties , multilateral treaties are also in place . For example , European Union ( EU ) countries are parties to a multilateral agreement with respect to value added taxes under auspices of the EU , while a joint treaty on mutual administrative assistance of the Council of Europe and the Organisation for Economic Co-operation and Development ( OECD ) is open to all countries . Tax treaties tend to reduce taxes of one treaty country for residents of the other treaty country to reduce double taxation of the same income . </P>
what is the purpose of a tax treaty
what is the purpose of a tax treaty
avoid or mitigate double taxation
avoid or mitigate double taxation