International Taxation, Features of the Functioning of Tax Systems in the Leading World Countries

Abstract

The article is aimed at defining the concept of international taxation and its role in the development of society, the impact of tax systems on the economic growth of the countries of the world, the peculiarities of the tax systems of developed countries and their place in the ranking on the index of international competitiveness of a tax system. The main changes in taxation in developed countries are also investigated, a rating was compiled and an analysis is carried out on the basis of indicators of tax revenues and competitiveness. Analyzing, systematizing and generalizing the scientific works of many scholars, contemporary models of taxation, along with features and differences of tax systems of the leading countries of the world were considered. Thus, it is found that the main source of budget revenues compared to other sources is taxes – both in developed and developing countries. Taxation is the main function of management. It has the potential to form relations between the State and society. Tax revenues allow countries to ensure security and provide public goods. In addition, tax policy, which complements monetary policy, is vital in maintaining economic stability by limiting inflation and balancing equilibrium in the market. As a result of the study, the main taxes used to measure the International Tax Competitiveness Index concerning a particular tax system are determined, an analysis of the change in the position in the rating of the International Tax Competitiveness Index of the G7 countries is presented. Prospects for further research in this direction are to substantiate the relationship between the functioning of the tax systems of the G7 countries and the economic situation and development of these countries, as well as the impact of tax revenues on GDP. There is a need to identify the main tendencies in the functioning of tax systems of the leading world countries, determine the impact of external factors on tax policy, as well as assess the tax systems of developed countries according to the International Tax Competitiveness Index.

Keywords

• taxation
• tax system
• competitiveness of the tax system
• international tax competitiveness index (itci)
• tax code.