FEATURES AND KEY TRENDS OF INTERNATIONAL TAX REGULATION

Abstract

The article updates the issue of tax administration as an element of effective tax policy. It has been identified that one of the most extensive and widespread trends in the world in the field of taxation is the simplification of tax payment. The greatest progress in the digitization of this process is observed in the countries of Europe and Central Asia, but other regions also show stable development in this area. Factors impeding the adoption of technology by tax administrations and taxpayers include low levels of literacy, unreliable information technology infrastructure, and insufficient availability of appropriate accounting and tax preparation software. It has been proven that within the European Union it is planned to reform the VAT system and introduce changes to other indirect taxes. It has been established that the role of VAT is growing even in such conservative countries as the United Arab Emirates and Saudi Arabia, which introduced the tax itself only in 2018. However, Saudi Arabia has already seen an increase in its percentage. The influence of the tax reform in the USA, which became the driver of changes in the taxation of TNCs, was evaluated. Possible channels through which the tax package can have consequences for other countries are: transfer of short-term and medium-term capital; the motivation of other countries to reduce their corporate tax rates, creating more demand for imports to the US as a result of stimulating the US economy through tax cuts. The countries of the OECD and the G20 are concerned about the issue of tax avoidance by international corporations, so they created the Inclusive Framework to involve different countries of the world in the joint development of standards on issues related to tax avoidance, as well as review and control of the implementation of the entire package of actions. At the same time, governments of various countries are trying to find ways to offer tax breaks to international corporations to increase foreign direct investment in their countries. One of the growing trends is offering tax credits for R&D. Many EU countries offer various tax benefits to companies or entrepreneurs who carry out R&D: additional tax deductions, exemption / reduction of personal income tax for employees, exemption of corporate income tax.