Two fundamental policy objectives in international taxation are:

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Tax neutrality refers to the objective of ensuring that tax policies do not distort economic behavior by favoring one activity or industry over another. National treatment refers to the idea that foreign businesses and investments should be taxed no less favorably than domestic ones. These two objectives are often seen as complementary and provide a framework for developing fair and efficient international tax policies. Tax revenues and international treatment are also important considerations, but are secondary to the principles of tax neutrality and national treatment.

Two Fundamental Policy Objectives in International Taxation Are