The WTO is based on the principles of non-discrimination, predictability and stability. [10] The cornerstones of the principle of non-discrimination are the principle of treatment of the most favoured nation (MFN) and the principle of National Treatment (NT). [11] The principle of treatment of DFN in Article I, Article II of the GATS and Article 4 of the TRIPS agreement requires a WTO member state to grant the same concessions to all other Member States. [12] Although there is no general principle of MFN on international taxation, the MFN principle applies when tax treaties effectively create a diversion of international capital flows. [13] The question of whether direct taxation should be exempt from WTO rules is twofold. First, direct taxation is only within the WTO`s jurisdiction if it is part of the WTO treaties. If the principles of international law do not permit an interpretation of WTO treaties, which give the WTO direct tax jurisdiction, economic considerations cannot confer jurisdiction in this area. However, if the WTO cannot achieve its objectives without at least partial control of direct taxation, direct taxes cannot reasonably be fully exempt from WTO rules. Nevertheless, a particular jurisdiction granted by secondary treaties would leave open the question of whether the WTO has a broader general jurisdiction over direct taxation, which arises from its core contracts. In theory, WTO rules should not interfere with direct taxation. The main objectives of the WTO are to promote trade among its members, to manage and monitor the application of its rules and to function as a platform for resolving disputes. [7] WTO treaties, in particular the General Agreement on Tariffs and Trade (GATT), the Trade-Related Investment Measures Agreement (TRIMS), the Trade-Related Intellectual Property Rights Agreement (TRIPS) and the General Agreement on Trade in Services (GATS) provide the WTO with a means to achieve these objectives. [8] Direct taxes empower collecting states to promote their own goals.

Today, this involves not only protecting their citizens from domestic and international violence, but also general and public well-being and other similar goals. Unlike indirect taxes, unlike indirect taxes, goods and services directly affected by the WTO are not directly collected. Third, I will focus on the economic impact of my research question. First, I would like to examine whether, from an economic point of view, the inclusion of direct taxation in WTO rules would have a positive impact on WTO objectives.