Simple tax rules and tax fragmentation in EU competitiveness

This European Parliament report examines how complex tax rules and tax fragmentation in the EU impact the continent's competitiveness and economic growth.

The report highlights that overly complicated tax systems create obstacles for businesses, particularly small and medium-sized enterprises (SMEs), leading to legal uncertainty, double taxation, and difficulties in claiming refunds, which discourages cross-border economic activity.

It calls for simplified and predictable tax rules to make compliance easier for taxpayers and administration more efficient for governments, aiming to foster a business-supportive environment where companies can thrive.

The report also emphasizes the need for better tax cooperation among Member States to reduce fragmentation and complexity, while respecting national competences and promoting a level playing field.