Harmonization of tax systems

Harmonization of tax systems refers to the process of aligning tax policies and regulations across different countries or regions to create consistency and reduce discrepancies. This can involve standardizing tax rates, rules for tax collection, and definitions of taxable income, making cross-border trade and investment smoother. The goal is to minimize tax obstacles, prevent tax evasion, and promote economic cooperation. While complete uniformity may be challenging, harmonization seeks to coordinate efforts so that tax systems work together efficiently without conflicting or creating unfair advantages.