ABSTRACT
This chapter discusses the issues that arise in international taxation. International taxation is an area that builds on international agreements and on customary international law. The inclusion of economic conditions and events as part of a country's tax jurisdiction is typically based on principles of juridical location. The tendency of countries to apply more advantageous tax conditions to the economic activity of individuals and companies results in a process of tax competition. In general terms, tax competition refers to the various policies that countries may pursue in order to enlarge the tax base at the expense of other countries. Tax avoidance schemes that consist of transactions where one company supplies another with goods and services depend on the value of the agreed transfer price. One of the main areas of contemporary economic activity that poses an issue of international taxation is the digital economy.
