This research article examines the complex interplay between tax sovereignty, international tax treaties, and corporate tax avoidance within developing economies. The regulatory and institutional dynamics of taxation in developing countries have significant implications for state capacity, fiscal equity, and sustainable development. Taxation has long been recognized as both a technical and political endeavor, shaping societal structures and the distribution of power. In contemporary discourse, this is compounded by the proliferation of international tax treaties and global pressures, such as those exerted by the OECD and G20, which aim to harmonize tax practices but may also curtail national sovereignty (Christians, 2010). Drawing on theoretical and empirical literature across taxation, state-building, and international political economy, this study synthesizes diverse perspectives to formulate an integrative framework that explicates how domestic and international tax regimes interact with corporate behavior, particularly tax avoidance strategies. The analysis situates tax treaties as instruments that can both enable and constrain domestic tax bases, and tax avoidance as a multidimensional phenomenon influenced by governance, firm characteristics, and global institutional pressures (Brooks & Krever, 2015; Dagan, 2000; Hearson, 2016). The study argues that understanding the implications of tax sovereignty and tax treaties on corporate tax avoidance requires nuanced attention to institutional capacity, political legitimacy, and the structural drivers of economic behavior. This article proposes avenues for policy reforms aimed at enhancing tax fairness and compliance, bolstering state revenue mobilization, and addressing inequalities amplified by international fiscal frameworks. The findings contribute to ongoing scholarly debates on taxation in development contexts and inform policymakers seeking equitable and effective tax governance.

Tax Sovereignty, International Tax Treaties, Corporate Tax Avoidance, Developing Economies, Tax Compliance, Fiscal Capacity, Global Tax Governance

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