Abstract

Traditional tax structures face difficulties from global economic digitalisation. The OECD has shaped worldwide tax policy, notably digital taxes. This document discusses the OECD's Base Erosion and Profit Shifting (BEPS) framework and Two-Pillar Solution to set fair and effective digital tax rules. The research shows how these metrics affect multinational firms, national tax policy, and the global economy. We also explore the long-term impact of these tax policies on investment decisions, tax collections, and economic equality among nations. It discusses implementation issues such compliance difficulties, tax haven opposition, and administrative complications in developed and developing nations. The study also examines how regional tax regulations affect the OECD's digital tax initiatives and how blockchain and AI might ensure tax compliance and transparency. This paper examines OECD policies and their worldwide impact on international taxes in the digital era. Destination-based cash flow taxes and digital transaction levies are also examined to see whether they can combat tax evasion. It also examines digital tax policies' geopolitical effects on international trade and the possibility for unilateral tax measures to cause diplomatic problems. Our study examines the socioeconomic effects of digital taxes on consumer pricing, corporate innovation, and digital market competition. The article provides a comprehensive view of global digital tax policy challenges by examining the views of governments, multinational corporations, small firms, and consumers. This study shows that international collaboration is needed to adapt tax legislation to the digital economy while preserving economic sustainability and justice by analysing worldwide taxation patterns.

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