Harmonizing taxation regionally

Description

Harmonizing taxation regionally involves aligning tax policies, rates, and regulations among neighboring countries or regions to reduce tax competition, prevent double taxation, and close loopholes exploited by cross-border businesses. This strategy facilitates fairer trade, increases tax compliance, and enhances revenue collection by creating a more predictable and transparent fiscal environment. It addresses issues such as tax evasion, profit shifting, and economic distortions, supporting regional economic integration and cooperation.

Context

The regional harmonization of taxation should mean both agreements excluding double taxation within the region and programmes for convergence among national tax systems. The envisaged common tax level may be set in such a way that it would exclude excessive speculation but would not prohibit intraregional securities trading.