Tax harmonization of direct taxes and tax competition problems in the European Union

The phenomenon of economic globalization which has accelerated since 1980's, has shown one of its most significant impacts on the tax system and policies. In the process of globalization accelerated competition, taxes are also used as an effective tool.Tax competition has emerged with globalization movement and caused some problems. This competition makes positive and negative effects on the European Union. Members of the European Union felt negative effects in indirect taxes mostly. European Union make harmonizations for overcoming this negative effects. The purpose of this study give information about the reached point and what measures should be taken for this problem.The literatur about tax competition which is sourced by globalization movement is overviwed. And it used for making interpretation about harmonization of indirect taxes in European Union.As a result European Union couldn?t get rid of the negative effects of competition and ensure the free market conditions in indirect takes on the contrary of direct taxes. However, the Lisbon Treaty with the decision in terms of a qualified majority of the 40 policy areas, covers the expansion of tax-related decisions in the immediate future dates using this method significant progress will be provided. In addition, the future of the alliance member states, the tax authority in the field of the European Union aims to ensure the integrity of institutions transferred to a full can say.Between Turkey and the European Union, in direct taxes is not a mismatch, then left to the membership of the resolve differences can be seen.Key Words: Globalization, Tax Competition, Tax Harmonization, Direct Taxes, European Union