Tax neutral

1. Tax - tax regimes.

In establishing a national or other tax regime, the principle of neutrality means that taxes should neither encourage nor discourage personal or business decisions.

"The purpose of taxes is to raise needed revenue, not to favor or punish specific industries, activities, and products. Minimizing tax preferences broadens the tax base, so that the government can raise sufficient revenue with lower rates."

(The Tax Foundation)

2. Tax - tax regimes - changes in rates or rules.

Changes in taxation are said to be tax neutral when they neither increase, nor decrease, the tax burden on particular groups of taxpayers, or on taxpayers overall.

See also

• Authority
• Base erosion and profit shifting
• Business in Europe: Framework for Income Taxation
• CbC reporting
• Forum on Harmful Tax Practices
• Neutrality
• Organisation for Economic Co-operation and Development (OECD)
• Tax
• Tax avoidance
• Tax compliance
• Tax evasion
• Tax Foundation
• Tax rate
• Tax transparency
• Taxpayer
• Transfer pricing
• Transparency