Level playing field

A Level Playing Field refers to conditions in which companies or countries compete fairly, without being influenced by preferential tax regimes, regulatory disparities, or policy advantages. In the context of international taxation, it emphasises aligning tax rules across jurisdictions so that firms succeed because of their productivity, innovation, and business practices rather than because one nation offers significantly more favourable tax treatment.

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For example, if two multinational firms operate in different jurisdictions and one benefits from a substantially lower corporate tax rate, it could gain a competitive advantage unrelated to its actual performance. Efforts such as the OECD’s BEPS initiative aim to reduce such inconsistencies and promote fairer and more comparable tax environments worldwide.