Subject Thearticle considers the Eurasian Economic Union (EEU) countries' specialization by statistical indicators of export subject to its industry-specific characteristics. It also reviews the issues of production growth, rationalization of industrial cooperation and import substitution using the tax incentives methods. Objectives The study aims to develop a concept of tax incentives for international industrial cooperation and import substitution in the EEU. Methods I offer a unique method to determine countries' specialization by indicators of mutual export of goods. The basis of the method is simulation using Excel, and graphical representation of the EEU countries' export structure. Results A regional integration union can be considered as a social and economic institution that supports the development of industrial cooperation and import substitution. The analysis of the simulation results of the countries' specialization demonstrates a variety of national economies and their multidirectional development. It proves that the countries complement each other, and a good economic base is available in the EEU to develop cooperation ties and import substitution. The study highlights promising areas of tax incentives for specialization and cooperation in the EEU. Conclusions Tax incentives for manufacture and import substitution are possible within the framework of tax regimes of intersectoral and intrasectoral cooperation. Establishing the Eurasian companies and providing support to their operations will also make tax incentives feasible.
Keywords: international cooperation, country specialization profile, tax incentives, Eurasian company
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