Modern Trends in International and Domestic Taxation Practices

This article is dedicated to the study of the features of international and domestic taxation practices at the current stage of world economic development. The aim of the article is to define the essence and current changes in international and domestic taxation practices, assess the impact of globalization on the formation of tax policy, analyze key global tax initiatives and their implementation in Ukraine. New norms and rules regarding international taxation, presented by the Organisation for Economic Co-operation and Development (OECD) and G20, are outlined. The research is based on the analysis of official statistical data on the tax burden of foreign enterprises in 2020–2025, specifically: indicators of corporate profit tax (CPT) rates and personal income tax (PIT) rates, as well as value-added tax (VAT) rates in OECD member countries that are European. According to the analysis results, an increase and decrease in tax rates has been observed in European countries, but the fluctuations of the average indicators in the areas are as follows: the corporate profit tax (CPT) decreased by 0.4%; the personal income tax (PIT) remained stable over the years; the value-added tax (VAT) increased by 0.1%. In Ukraine, tax rates have remained unchanged from 2020 to 2025: CPT – 18%; PIT – 18%; VAT – 20% (standard rate). Both positive and negative effects of tax changes and their impact on European countries and Ukraine have been noted. An additional challenge for national governments and tax authorities has been identified, which is double taxation. Methods to avoid double taxation have been allocated: the method of tax exemptions and the method of tax credits. Key international agreements have been discussed as means to combat tax evasion: the OECD Model Tax Convention; the OECD Convention on Mutual Administrative Assistance in Tax Matters; the BEPS Project; the standard for automatic exchange of information; the EU directives on combating tax evasion 2016/1164; international agreements on avoiding double taxation. The significance of the impact of global integration on Ukraine’s progress towards improving its tax system, and mutual tax cooperation between countries in the area of taxation, has been highlighted: participation in the international BEPS project, and joining and implementing the Standard for Automatic Exchange of Information CRS. Currently, Ukraine has entered into and is applying 70 bilateral international agreements and conventions on avoiding double taxation with other countries. A relevant area for further research is the assessment of the efficiency of Ukraine’s ability to implement international initiatives concerning the regulation of international taxation in the current conditions of the global economy, in line with the existing situation in the country and during the post-war period.