How Can the East African Community Guard Against Base Erosion and Profit Shifting While Working Towards Deeper Integration? Lessons from the European Union

The East African Community (EAC) is working towards establishing deeper integrationbetween its six partner states. The EAC partner states are: Burundi, Kenya, Rwanda,South Sudan, Tanzania and Uganda. This paper analyses the lessons the EuropeanUnion may offer the EAC in guarding against base erosion and profit shifting whileimplementing its integration project. Corporate tax and VAT have been identified as thetwo tax bases most at risk. This paper analyses the steps taken by the European Union toprotect its corporate tax and VAT bases, and draws from the European Union’s proposedCommon Consolidated Corporate Tax Base and its VAT harmonization efforts torecommend best practices for the EAC