Conventions for the avoidance of double taxation are bilateral agreements in which the contracting countries establish the tax rules that will apply to income and assets associated with both countries. The convention solves the problem of double taxation in both countries, in one of two ways: either by granting exclusive taxation rights to one or the other country, or by providing that one country – generally the source country in which the income was derived – will have the "primary taxation right," while the other country – the country of domicile of the person deriving the income – will have a "residual taxation right," i.e. it will have the right to tax the income alongside the duty to prevent double taxation by allowing a credit on the tax that was paid in the country with the primary