Tax Harmonization in the EU

Tax harmonization in the EU refers to efforts to align tax policies and regulations among member countries to create a more uniform tax environment. This aims to reduce discrepancies in tax rates and rules, making it easier for businesses and individuals to operate across borders within the EU. By addressing issues like tax avoidance and fostering fair competition, harmonization helps promote economic stability and growth. However, complete uniformity is challenging due to each country's distinct economic conditions and political preferences, leading to ongoing discussions about the best approach to achieve effective tax cooperation.