Abstract
The country’s ability to compete for financial and investment resources in the international arena depends on a number of factors that determine the favorable business environment, the level of protection of citizens’ rights, and the material well-being of the population. One of the indicators of the quality of the economic environment in the country is the level of tax competitiveness, as an integrated indicator that summarizes the indicators of the effectiveness of the tax system and the quality of tax policy. The article summarizes the arguments and counterarguments within the scientific discussion on the generalization of the main theories of formation and development of tax competitiveness of the country. The main purpose of the article is a comparative analysis of theories of tax competitiveness, determining the nature of the impact of tax competitiveness on indicators of economic and social development of the country. The methodological tools of the study are analytical and comparative methods, methods of generalization and synthesis. The object of research is the theory of the formation of tax competitiveness of the country. Based on the results of the analysis, a conclusion about the dual nature of the impact of tax competition on the country’s development indicators is made. Thus, tax competition reduces the level of taxation in countries, which negatively affects the amount of tax revenues and reduces the country’s potential to finance socio-economic development programs, stimulates the growth of labor migration and relocation of tax bases in jurisdictions with more attractive tax conditions. On the other hand, tax competition stimulates economic growth in the leading countries by increasing their investment attractiveness, business activity, stimulating certain sectors of the economy. The results of the study can be useful for public authorities in making decisions on identifying key vectors of public tax policy in the country.
Highlights
One of the main tasks of our time, which forms the preconditions for the development of international trade, financial globalization, international capital movements, the formation of a single financial market is the maximum approximation of regulations to the provisions and requirements of the international community
One of the reasons for this situation is that tax competition can serve as a significant threat to the country's economic security, which requires government intervention and regulation, cooperation between governments of several countries, the implementation of joint measures, and insignificantly affect economic development
The results of the analysis show that the existence of the phenomenon of tax competition has not led to a reduction in the tax base in either the EU or the OECD
Summary
One of the main tasks of our time, which forms the preconditions for the development of international trade, financial globalization, international capital movements, the formation of a single financial market is the maximum approximation of regulations to the provisions and requirements of the international community These standards are consistent with the main activities of the European community, which focuses its efforts on create an ever closer union. Despite the significant efforts of the international community to solve the problem of inconsistency of the regulatory framework of business and the existence of significant differences in tax policies of individual countries ensures the formation of sustainable competitive tax advantages of some countries over others This leads to increased capital and labor inflows, increased investment attractiveness, the opening of branches of international companies in some countries, and limits the government's ability to increase revenues in others. A more comprehensive study of the concept of tax competitiveness, the analysis of its main theories is forming an important instrument of increasing the financial potential of the countries
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