EVOLUTION TRENDS IN DIRECT TAXATION IN THE EUROPEAN UNION

Since the creation of the European Union, continuous efforts have been made in order to ensure the best common practice which respects the fundamental economic liberties. Taxation is one of the fields where special measures were adopted, in order to ensure the proper function of the internal market. Major progress has been made in indirect taxes; their harmonization was highly needed, as their improper regulation and use may distort the free circulation of goods and services among the member states. For direct taxes though, there were no pressing harmonization requirements, as they are regulated and collected within each member state. In time, globalization has allowed companies to extend their activity beyond national borders; thus, their fiscal requirements have converged towards harmonization measures. This paper presents the evolution of the direct taxes harmonization and the trends for further development.