THE MODEL PREVENTION ON DOUBLE TAXATION AGREEMENT IN PERSPECTIVE OF INTERNATIONAL TRADE

Abstract

The development of international trade is still increasing especially since entering the free trade era. The increasing of internasional trade current caused some issue, especially on taxation, a cross border trade can caused the collision of tax policy between states. The principal diffrence in making provi- sion about tax will cause double taxation which can increase the tax burden to the international trader. “The Prevention on Double Taxation in Perspective of International Trade: focused on: What is the regulation on double taxation and the Tax mechanism according to international trade law, and what is the effect of the doble taxation on international trade law, the cooperation between states especially Indonesia in aticipating double taxation. The research is analyzed and cloncluded as an effort to prevent the international double taxation, the international community made a Model Agreement that can be used as reference for all nations in making an agreement on double taxation prevention, there are tow kinds of Models which are OECD Model commonly used by develop coun- tries and UN Model commonly used by developing countries.

Keywords; Model, Double Taxation Agreement, Perspective, International Trade