Taxation and development
Every year, governments in developing countries (and elsewhere) lose billions in revenue because of harmful tax practices and the existence of tax havens. The amount of money illegally transferred out of developing countries is thought to be at least seven times higher than the amount they receive in official development assistance.
EU approach to taxation and development
The EU Communication on taxation and development, published in 2010, aims to increase developing countries' domestic revenues by building stronger tax systems and fighting tax evasion internationally.
New study on transfer pricing
This new study on transfer pricing presents recommendations on suitable approaches for supporting developing countries in order to enhance domestic resources mobilization in line with the principles of good governance in the tax area.
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New study (July 2011): Transfer pricing and developing countries. Implementing the tax and development policy agenda.
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Appendix B- Country Study Honduras. [746 KB]
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Appendix C- Country Study Ghana. [237 KB]
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Appendix D- Country Study Kenya. [944 KB]
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Appendix E- Country Study Vietnam. [558 KB]
The views expressed by the consultants do not necessarily reflect those of the European Commission.
The issue has gained recognition as a central challenge to developing countries' capacity to effectively tax multinational corporations.
Against this background the European Commission has taken the initiative to commission this study. The study outlines the current situation with regard to transfer pricing and challenges in selected developing countries, namely Ghana, Honduras, Kenya and Vietnam, and based on this makes recommendations for future donor support to developing countries in this area.
What help does the EU Communication propose?
Broadly, measures to:
- Assist developing countries in maximising their tax revenues.
- Encourage more international tax cooperation to plug 'tax leaks'.
- Better integrate tax issues into budget support programmes.
- Supporting the adoption and implementation of the OECD transfer pricing guidelines in developing countries.