The taxation of cross border investment income varies between nations for each type of investment income. There is a consensus among nations that every investment income ought to be subject to tax only once. In the past few decades, many of the developed nations have been attempting to bring a structured approach to cross border taxation through bilateral tax treaties. Investment income is primarily the financial income from dividends, interest and capital gains. In addition, the process is made more complex because of the intermediate investment structures used by various entities and individuals. The taxation is therefore based on the residency or nationality status of the individual and the entity The tax treaties, however, have not been very effective and face various challenges. Now This means taxing the income either at the entity level or the final investor recipient level.