INTERNATIONAL TAXATION IN THE CONTEXT OF GLOBALIZATION: CURRENT TRENDS AND CHALLENGES

Abstract

This article delves into the evolving landscape of international taxation amid deepening global economic integration and the accelerating pace of digital transformation. The primary aim of this research is to evaluate how transition economies are adapting to the sweeping global tax reforms spearheaded by the Organisation for Economic Co-operation and Development (OECD), notably the comprehensive Base Erosion and Profit Shifting (BEPS) Action Plan and the groundbreaking introduction of a global minimum tax rate. A significant focus is placed on the unique challenges confronting Ukraine as it navigates the adoption of international tax standards while grappling with the complexities of an ongoing military conflict, persistent fiscal instability, and profound economic shocks.
Employing a methodology that combines comparative analysis with rigorous institutional assessment, the study draws insightful parallels from the experiences of Ukraine, Kenya, and Indonesia. It meticulously examines the influence of critical factors such as the quality of regulatory frameworks, the robustness of digital infrastructure, and the existing administrative capacity on the ability of these diverse states to effectively implement intricate international tax norms.
The research findings emphatically highlight the crucial imperative of harmonizing global tax initiatives with the specific national circumstances of individual countries. Nations boasting stable institutional foundations and sophisticated tax administration systems demonstrate a greater preparedness to effectively combat the erosion of their tax base and enhance overall fiscal transparency. Conversely, economies facing significant stress, exemplified by the case of Ukraine, encounter substantial hurdles stemming from industrial contraction, diminished export revenues, and the considerable burden of defense-related government expenditures, which collectively place additional strain on tax collection endeavors.
The article persuasively argues for the necessity of a more adaptable and supportive international tax system that duly considers the distinct fiscal realities of vulnerable states. To this end, it proposes the strengthening of international cooperation, strategic capacity-building initiatives, and the leveraging of innovative digital solutions as pivotal instruments for ensuring equitable and efficacious tax governance within the interconnected global economy. Furthermore, the study delineates promising avenues for future research, encompassing the transformative role of tax technologies, the implementation of risk-based compliance models, and the intricate interplay between national sovereignty and the imperative of global coordination in tax matters.