International Journal of Education and Social Science (IJESS)

With the globalization and expansion of business, the adjective "international" is applied widely to many things – international institutions, international waters, international relations, international business, international transactions, international taxation, etc. The latest can be discussed with numerous pros and cons. This paper will address the contradiction in terminology, as when we discuss International Taxation, we generally mean International Tax Planning. To implement international taxation, we need an international institution for levying taxes. Taxation was, is, and will be, at least for the near future, a national matter – closed in the borders of the countries. However, compliance with different tax structures, tax institutions, and tax rates led to the development of International Tax Planning. The paper will emphasize the differences between these two points by examining internationalization in tax matters in the largest Union – the European Union; the type of internationalization in the USA, including the existence of federal taxation; treaties for avoiding double taxation between countries; and the future of international tax planning.