THE ROLE AND ISSUE OF INTERNATIONAL TAX IN THE CONTEXT OF INTERNATIONAL BUSINESS

Abstract

The international taxation is actually an entire rule of domestic tax law of all countries in world that guiding the offshore tax subject and offshore tax object. In practice the international taxation rules is adopted in provision of the national tax law and tax treaties. The problems are what are the roles and issues of international tax in the context of international business. To answer these problems, this thesis is conducted by the qualitative method. In the qualitative method, the process of research is carried out by observation, interview, analysis etc to identify problem, finding the solution and conclude the result of this research. The research concludes that the roles of international tax in the context of international business are (i) double taxation, (ii) excessive withholding tax on the cross border investment, (iii) tax avoidance and evasion and (iv) international tax disputes and the issue of international tax in the context of international business are (i) eliminating certain forms of double taxation, (ii) reducing withholding taxes on cross-border investments, (iii) prescribing how certain profits are to be calculated, (iv) exempting certain short-term activities in the source country from income tax and (v) enabling information to be exchanged between tax administrations.