This Manual provides practical guidance on all aspects of tax treaty negotiation, including on how to prepare for and conduct negotiations. Section I of the Manual introduces the main principles which underlie double tax treaties, including the concepts of residence and source. It deals with methods for the elimination of double taxation, as well as the risks associated with the failure by the residence country to provide relief of double taxation, excessive source taxation, tax discrimination and uncertainty and complexity in the tax environment. In addition, it discusses how tax treaties may help in addressing tax avoidance and evasion and in preventing tax base erosion, including situations of double non-taxation. Section II of the Manual first addresses the fundamental question of why a country should negotiate tax treaties. It then elaborates on the importance of developing a tax treaty policy framework and a country model before entering into negotiations. It finally provides a comprehensive overview of the practical steps to be taken before, during and after the negotiation of each tax treaty. The core of the Manual is contained in Section III, which introduces the different provisions of the UN Model. It is not intended to replace the explanations provided in the Introduction and Commentaries on the Articles of the UN Model, but rather to provide a simple tool for familiarizing less experienced negotiators with these provisions. Chapter IV (Taxation of capital) briefly describes the provisions contained in Article 22 dealing with taxes on capital. Chapter V (Methods for the elimination of double taxation) illustrates the operation of Article 23, which requires the country of residence of the taxpayer to provide relief from double taxation. This may be done by either the exemption method or the credit method. Chapter VI (Special provisions) analyses Articles 24 to 29, which include the provisions dealing with non-discrimination, mutual agreement procedure, exchange of information, assistance in collection, relationship with fiscal privileges of diplomats and entitlement to treaty benefits. Chapter VII (Final provisions) covers the procedures for the entry into force and termination of treaties, as included in Articles 30 and 31. Section IV of the Manual deals with the improper use of tax treaties, which may occur, for instance, when taxpayers enter into certain transactions or arrangements for the purpose of obtaining treaty benefits which would not otherwise be available to them. Section IV reviews the different tools that are available to prevent the granting of treaty benefits in these situations while taking into account the need to provide certainty and stability in the application of tax treaties.