One key aspect of global tax reform is addressing the challenges posed by the digital economy, where companies can operate across borders without a physical presence, making it difficult to determine where they should be taxed. Another important issue is base erosion and profit shifting (BEPS), where multinational companies exploit gaps and mismatches in tax rules to shift profits to low-tax jurisdictions, thereby reducing their overall tax liabilities.

Efforts to reform the global tax system have been ongoing for many years, with initiatives led by organizations such as the Organisation for Economic Co-operation and Development (OECD) and the G20. In October 2021, 137 countries agreed to a global minimum corporate tax rate of 15% as part of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS). This agreement is intended to ensure that multinational corporations pay a minimum level of tax regardless of where they are headquartered or operate.

Global tax reform is complex and often faces challenges due to differences in national interests, tax systems, and economic priorities. However, there is growing recognition of the need for cooperation among countries to address tax avoidance and ensure a more equitable distribution of tax revenues