Comparative Analysis of Tax Regimes for Foreign Businesses Across Global Economies

Abstract

The study is aimed at analysing the tax regimes of the world’s leading economies and their impact on the choice of jurisdiction for conducting foreign business. A comparative analysis of the tax systems of the world’s leading economies, such as the United States, Germany and France, China, Brazil, and India, is conducted, as well as the tax regimes of developing countries, including Albania, Ukraine, and Uzbekistan. The methodological approach is based on an analysis of the tax burden, the structure of taxation, administrative requirements, and the availability of tax benefits. The results of the study show that tax policy plays a key role in shaping the investment attractiveness of countries. High-tax jurisdictions such as Germany and France offer stable and transparent tax systems, but simultaneously create substantial tax burdens for businesses. On the contrary, low-tax regimes attract international companies, but they face international regulation and the need to comply with transparency standards. Special attention is paid to the introduction of a global minimum corporate tax (15%), which affects competition between countries and the tax planning of multinational corporations. The factors determining the attractiveness of jurisdictions for international business are not only the level of taxation but also the predictability of the tax system, administrative costs, the rate of refund of value-added tax, and the availability of double taxation agreements. The paper offers recommendations for developing countries on modernising tax systems, considering the international experience of leading economies. The results obtained led to the conclusion that effective tax regulation should ensure a balance between the fiscal interests of the state and the creation of favourable conditions for doing business.