Global Business Environment

SUMMARY: With rapid changes in business activities, the nature of taxation policies is also undergoing a rapid change. Undoubtedly, all governments are trying to make their policies favorable for business to grow so as to encourage more foreign investors to invest in the country. Organizations like EU are trying to maintain a level playing field for all its members. Further, development of international business has led to the diminishing of geographical barriers. Countries are therefore entering into treaties which they feel will enhance business growth. The Double Taxation Avoidance Agreements are a step in this direction. Another important area of focus is taxation on sales made through the internet or e-commerce. New solutions are emerging for this and policies are being formed keeping the business sector and the consumer interests in mind.