The legal norms related to taxes are established by the EU Treaty and have not been changed to date. According to them, each member state has the right to maintain its own tax system, introduce new tax forms with the obligation to harmonize some parts of them (tax rate, base, etc.) with the decisions of EU bodies. The Union has adopted several specific guidelines (directives) on the harmonization of certain taxes, and a certain minimum of harmonization of tax systems has been achieved. Income tax, on the profit from their business is paid by various types of companies, clubs, cooperatives and associations without legal personality. The rules are set by the Member States and may vary from country to country, while the EU has only limited powers in this regard. Since the EU member states independently determine the tax policy at the national level, the level of the profit tax rate also differs from member to member. There are currently 27 corporate tax systems in the Union ranging from 9% to 35%. In order to increase the inflow of foreign direct investment, states offer attractive tax conditions to potential investors, especially within the framework of income tax. In addition to the lower legal rate / rate, various tax reliefs, exemptions and incentives are included, which affects the creation of tax competition among states. The movement of the legal tax rate and effective income tax rates in the past decade (from 2012 to early 2022) in EU Member States indicates a reduction in the tax burden and stronger tax competition, especially in the new Member States compared to the old ones.