TAXATION

Tax Policy Reforms for Promoting Fair and Efficient Business Taxation in the EU

Zavod 14 from Slovenia is pleased to present a comparative study on Tax Policy Reforms for Promoting Fair and Efficient Business Taxation in the EU, supported by the Friedrich Naumann Foundation for Freedom. The economic environment, especially during the Covid-19 pandemic, has become more globalised, mobile, and digital, while the corporate income is taxed at the national level, implying that current tax systems are not aligned with the modern business realities. Still, the priority of the EU is to encourage sustainable growth and investment within equitable Single Market. Accordingly, the EU needs a framework for fair and efficient tax policy, which will ensure equal tax burden distribution, promote sustainable growth and investment, diversify funding sources of the EU economy and strength the competitiveness of the EU economy.

Accordingly, the main objective of the study is to provide the theoretical overview and to examine the secondary data about the following areas considering tax policy reforms for promoting fair and efficient business taxation in the EU: 1) the definition of tax competitiveness concept; 2) fundamental principles of tax policy; 3) tax policy agenda in the EU; 4) the role of tax administration in supporting tax system; 5) corporate taxation trends in the EU; 6) The role of government for better business taxation; and 7) Implications for Central and Eastern European Countries. The main purpose of the study in which the state-of-the-art in the field of tax policy reforms for promoting fair and efficient business taxation in the EU is examined, is to identify challenges and opportunities to improve current state of tax system in the EU countries by comparing old member states (OMS) and new member states (NMS). The findings of this study are not only interesting from the academic (research and debate) but also from the practical (suggestions for improvements) perspective. The research is carried out on literature review and analysis of the secondary data by different stakeholders, e.g. European Commission, World Bank, other international organisations, governments’ institutions and others. The study reveals that the EU will need a robust, efficient, and fair tax framework that meets public financing needs while also fostering the recovery as well as green and digital transformation.

Zavod 14, zavod za sožitje in napredek is a non-profit organization established in October 2013 and has its headquarters in Ljubljana.