Abstract

This article traces the history of the earliest bilateral tax treaties which were concluded prior to World War I. There are currently over 3000 bilateral tax treaties in existence and their fundamental concepts and terms can be traced back to the earliest treaties. This article explores the political and economic context of the early treaties to understand why countries entered into tax treaties. Tax treaties play an important role in facilitating economic integration and as the European Union and other regional blocs seek to establish a single market, the historical context of tax treaties can assist in understanding their role in modern international economic relations