Abstract:
A country’s tax regime is always a key factor for any business considering moving into new markets. The major reason states sign tax treaties is to avoid international double taxation which usually arise as a result of cross-border trade and investment. For a capital importing or developing country like Nigeria, attracting foreign direct investment (FDI) which will facilitate the transfer of technology and drive economic development and growth is a good reason for entering into tax treaty negotiations and agreements with capital exporting or developed countries. The study adopted the exploratory assessment method by reviewing research work done by other researchers on the relevant topic, effects of tax treaties on foreign direct investment, using secondary data. The researcher, finds out that signing more tax treaty agreements will increase the foreign direct investment in Nigeria, as such, Nigeria should leverage on her status as 26theconomy of the world and as the largest in Africa to attracts more foreign investments by entering more tax treaties.
