Tax reform and tax harmonization in Mercosur

Abstract

This article aimed to discuss tax reform and its impacts on tax harmonization in Mercosur. To this end, it compares tax structures in Mercosur countries; exposes some tax harmonization goals and the challenges faced by the countries that make up this economic bloc; and cites the impacts of the recent Brazilian tax reform on the fiscal harmonization process. As a methodology, we opted to use the deductive method, operationalized by bibliographical research on already published materials and analysis of the legislation applicable to the topic. It has been seen that each Mercosur member country maintains its own fiscal system, and achieving fiscal harmonization has proven difficult due to differences in economic structures, political considerations and levels of development among member states. However, it was noted that there have been discussions and efforts to align certain aspects of taxation, as occurred with the recent Brazilian tax reform, to facilitate trade and economic cooperation within the bloc.