How has the globalisation of markets impacted international taxation?

The globalisation of markets has had a major impact on international taxation. This is because companies in different countries can now do business across borders, and taxation practices must be adapted to suit the changing conditions of global markets. Globalisation has caused an increase in competition among countries, as they compete to attract new customers and businesses to their respective countries. This has led to countries lowering their taxes in order to attract businesses and increase their trade. This in turn has led to a decrease in the amount of revenue a country may collect from their taxes, as businesses are often able to find lower-tax countries to operate in. The threat of relocation has also caused countries to seek new ways to tax international businesses, such as implementing taxes on goods that are bought and sold across borders. This has led to a significant increase in the complexity of international taxation, as different countries can have different rules and regulations regarding taxes on foreign goods. Another factor in the globalisation of markets is the rise of digital and e-commerce platforms. These platforms are not confined to just one country, but instead enable businesses to transact on a global scale. As such, countries are having to develop new tax regimes that can effectively capture taxes from these kinds of transactions. Overall, the globalisation of markets has had a major impact on international taxation, as companies are more easily able to move across borders, taxes are being lowered to attract businesses, and new tax regimes are being developed to capture taxes from digital platforms. This has led to a much more complex international taxation system, as countries adapt to the changing landscape of global markets.

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How has the globalisation of markets impacted international taxation?

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