The BEPS Project and International Tax Competition

Nelly Popova

doi:10.37075/FABA.2025.2.04

Authors

Nelly Popova Department of Finance, University of National and World Economy, Sofia, Bulgaria https://orcid.org/0009-0001-6130-3588

DOI:

https://doi.org/10.37075/FABA.2025.2.04

Keywords:

Tax competition, Base erosion and profit shifting, Tax avoidance, Tax coordination

Abstract

Purpose: The purpose of the present article is to theoretically analyze the impact of the BEPS Project on international tax competition and its possibilities to reduce harmful tax competition.

Design/Methodology/Approach: The methodology used in the article is a combination of a literature review and an analysis of official OECD documents.

Findings: The main conclusion of the article is that although the measures under the BEPS Project represent a significant advance in the coordination of CIT rules, some challenges remain.

Practical Implications: Reduced possibilities for MNEs to shift their profits and leveling of their competitive positions with companies operating on domestic markets.

Originality/Value: The article contributes to the academic debate on international tax competition and tax coordination by analyzing the implications of BEPS to reduce harmful tax competition.

Keywords: Tax competition; Base erosion and profit shifting; Tax avoidance; Tax coordination

Paper Type: Research Paper

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References

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