CROSS-BORDER COOPERATION IMPACT ON TAXATION IN THE CONTEXT OF INTERNATIONAL TRADE: CASE OF LITHUANIA

Abstract

The article explores the significance of cross-border cooperation (CBC) in bolstering international trade, with a particular focus on Lithuania's strategic role. Emphasizing the economic growth and development driven by CBC, the article discusses its crucial role in harmonizing customs regulations, simplifying trade procedures, and reducing tariffs. It delves into the taxation aspect, highlighting how CBC can aid in curtailing tax evasion and fostering the development of tax treaties, making international trade more efficient and tax-friendly. Lithuania, with its strategic geographic positioning and membership in the European Union and the Interreg Baltic Sea Region, is portrayed as having comparative advantages in CBC, including beneficial tax treaties and a competitive corporate income tax rate. The article aims to evaluate Lithuania's CBC in global trade, its impact on taxation, and Lithuania's comparative advantages in this context. The conclusions drawn underscore Lithuania's successful utilization of CBC to enhance its economic standing by leveraging geographical and economic strengths to reduce costs, improve efficiency, and bolster its position in the global market through effective tax cooperation measures like the JAP, the CRS, and the AEOI, thereby facilitating increased exports, job creation, and improved economic performance.