Bilateral Treaties on Elimination of Double Taxation on Income and Capital and Prevention of Fiscal Evasion

Past, Present and Challenges Pro Futuro

Abstract

Bilateral treaties on elimination of double taxation and prevention of fiscal evasion have
a key role in the context of international tax cooperation. On one hand, these double tax treaties
encourage international investment and global economic growth by eliminating or reducing the
negative effects of international double taxation on income and capital gained as a result of
cross-border activities of the entities. On the other hand, they improve the cooperation between
tax authorities, primarily in order to achieve efficient combat against international tax evasion.