NEW EU INITIATIVES IN THE FIELD OF BUSINESS TAX HARMONIZATION

Abstract

The article is devoted to the latest initiatives of the European Union (EU) in the area of business tax harmonization. The author establishes that despite the fact that direct taxation is a matter of fiscal sovereignty of individual EU Member States, the current realities related to tax evasion and obstacles to cross-border activities of business entities are a prerequisite for the active development of business tax harmonization in the Community. The essence and features of the minimum taxation of companies (Pillar 2), proposals to combat the misuse of shell companies for tax purposes (Unshell), and the new legislative framework for corporate taxation in the EU (BEFIT) are highlighted, the Debt-Equity Imbalance Allowance (DEBRA), the Directive on the Fast and Secure Relief from Excessive Withholding Taxes (FASTER initiative), the Head Office Taxation System for Small and Medium Enterprises (HOT), and the harmonization of transfer pricing in the EU. The author analyzes the prerequisites for the introduction of such legislative initiatives, identifies the regulatory documents that regulate them, outlines the range of business entities to which the rules apply, and identifies the general and specific goals achieved as a result of harmonization of certain areas of corporate taxation. The author identifies the impact of such legislative initiatives on the peculiarities of tax policy in Ukraine. It is established that the outlined norms and legislative initiatives are the future sphere of harmonization of tax legislation of Ukraine. It is substantiated that the main positive aspects of such harmonization will be: increased transparency of business operations; reduction of the risks of aggressive tax planning and tax avoidance; increased compliance with tax legislation; increased tax revenues to the budget; promotion of foreign investment; reduction of investors' costs for obtaining tax benefits, etc. The author concludes that the need for such harmonization also has certain negative aspects which should be taken into account in the process of conducting tax policy. Thus, certain provisions may contradict national priorities in the field of taxation, which will prompt a dialogue on postponing the timing of their implementation in national legislation.