INTERNATIONAL TAXATION

Abstract

The development of the digital economy and technology-based business models has brought new challenges in the international tax system, especially related to the determination of taxation rights between countries. This study aims to examine the development of international tax policy, the challenges faced, and the effectiveness of global cooperation in preventing cross-border tax avoidance. The method used is Systematic Literature Review (SLR) by identifying literature from various reliable databases such as Google Scholar, Scopus, SINTA, and Web Of Science. The results of the study show that economic digitalization requires a paradigm shift in the international tax system which has been focusing on physical presence.

Global policies such as BEPS and international minimum taxes have been developed, but their implementation still faces major challenges, especially in developing countries due to limited infrastructure, digital literacy, and differences in tax administration capacity. The findings of this study confirm the need to update international tax theory to be relevant to the dynamics of the digital economy, as well as the importance of adjusting policies to the institutional capacity of each country. This study makes a theoretical and practical contribution to the development of fairer and more effective tax policies in the era of economic globalization.