international tax policy

International tax policy governs how countries tax cross-border economic activities, such as businesses operating in multiple nations or individuals earning income abroad. Its goal is to prevent tax evasion, ensure fair taxation, and avoid double taxation—where the same income is taxed by two countries. Countries often collaborate through agreements called tax treaties to coordinate rules and share information. These policies balance allowing free trade and investment with protecting tax revenues, fostering a fair global economic system. Effective international tax policy requires ongoing cooperation and adaptation to changing economic circumstances and digitalization.