Global Tax Forum: The Lowdown on Tax Treaties

Cendant (CD Quote) recently announced it's opening Days Inn hotels in several eastern European countries, including Slovenia.

Perfect timing, taxwise. In June, the U.S. signed an international income tax treaty with Slovenia.

Coincidence? Not really. Income tax treaties often are a first step in the expansion of commerce between the U.S. and other nations. And while these treaties are dominated by business concerns, they also contain key provisions for individual taxpayers. Their primary goals are to prevent double taxation of individuals' income and to reduce tax evasion through the sharing of information between the two countries.

The U.S. has tax treaties with 64 countries, mainly in Europe. Incidentally, the first income tax treaty the U.S. signed was with France, in 1932. ...