These kinds of tax agreements have been designed to avoid double taxation of the same income or gains in more than one country. The UK has a large number of these tax treaties, although the OECD estimates there are more than 4,000 treaties worldwide. The UK’s tax treaties have generally been agreed by the UK with one other country (bilaterally). However, they can involve any three or more territories (multilaterally).
There have been claims of ‘stateless’ or ‘double non-taxed’ income or gains arising as a result of the impact of some provisions in treaties and recommendations from the BEPS project address how to prevent this (see also Multilateral instrument).