ABSTRACT
The digital economy is drastically changing business models and disrupting traditional tax systems. This is forcing governments to enact new tax laws and implement various measures to facilitate tax compliance. Given the increasing participation in the digital economy, it is important for countries like India to adopt a regulation and tax collection system for large digital-intensive businesses. International collaboration and appropriate tax policies are essential. International cooperation offers several benefits, including technological exchanges, consensus on the importance of global strategies, and opportunities to work together in a shared forum. This chapter seeks to identify the challenges facing India’s digital taxation system and addresses the importance of international collaboration in providing digital services and ensuring tax compliance. Emphasis is placed on ensuring international collaboration in the pursuit of digital taxation, tax administration, and tax compliance in India. The research approach is primarily descriptive and includes a comprehensive literature review. The policy recommendations of this study will promote a greater understanding on the part of academics, international tax administrators, and policymakers of the importance and significant benefits of international collaboration, digital services, and tax compliance in India.
