Nomico
Vol. 2 No. 1 (2025): Nomico-February

Evaluation of the Effectiveness of Income Tax Policy in the era of Globalization

Loso Judijanto (IPOSS Jakarta)
Olyvia Rosalia (Universitas Islam Negeri Sulthan Thaha Saifuddin Jambi)
Selly Swandari (Fakultas Ekonomi dan Bisnis Universitas Mulawarman)
Firayani Firayani (Universitas Islam Negeri Sulthan Thaha Saifuddin Jambi)



Article Info

Publish Date
28 Feb 2025

Abstract

Tax policies play a crucial role in shaping economic growth and investment decisions in an increasingly globalized world. This study examines the impact of globalization on national tax policies, focusing on tax competition, corporate taxation, and the challenges of maintaining revenue stability. Globalization has intensified tax competition among countries, often leading to reduced corporate tax rates to attract foreign investments. While tax incentives can stimulate economic activity, they may also erode government revenues and create disparities in tax burdens. This research explores the role of international tax treaties in harmonizing tax regulations and reducing tax avoidance strategies by multinational corporations. Furthermore, the study highlights the transition from income-based to consumption-based taxation as a response to shifting economic dynamics. The findings suggest that policymakers must balance tax competitiveness with sustainable revenue generation to ensure economic stability. By analyzing recent tax reforms and policy adaptations, this study provides insights into the complexities of taxation in a globalized economy and offers recommendations for future tax strategies.

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Journal Info

Abbrev

NJ

Publisher

Subject

Economics, Econometrics & Finance

Description

The journal publishes original articles on current issues and trends occurring internationally in accounting, financial accounting, public sector accounting, auditing, economics, economics education, development economics, economic statistics, monetary economics, international economics, ...