What is Tax System

Tax system and tax policy today are becoming the most important instruments of national economic policy. Globalization process is objective in nature and is also inherent in market economy, whereas the neoliberal model of globalization is constantly getting more popular in both developed and developing countries. While developing countries in this regard are concentrating mostly on a multitude of potential reforms and resolving their numerous economic and social problems which are getting only more complicated, the interest of developed countries concerns mostly newest innovative technological trends and their application in a specific economic context. That is, in order to provide better conditions for full convergence of socioeconomic systems with higher rates of economic growth reforms, tax systems and tax policies are needed to reduce the barriers to free and global movement of goods, services, capital, and manpower.