International tax policy refers to the rules and agreements that govern how countries tax income and profits generated across borders. It aims to prevent issues like double taxation, where a taxpayer might be taxed by two different countries on the same income. Countries often enter into treaties to clarify tax obligations and promote fair taxation practices. These policies are influenced by organizations such as the Organisation for Economic Co-operation and Development (OECD), which provides guidelines to help countries align their tax systems. Effective international tax policy is essential for fostering global trade and investment while ensuring that governments can collect revenue fairly.