Grau Ruiz, María Amparo2026-01-132026-01-132024Grau Ruiz, M.A.: "Closing regulatory tax gaps for territorially enhanced circular economies", Rivista Di Diritto Tributario Internazionale/International Tax Law Review, 2024, No. 3, pp. 93-112.1824-1476https://hdl.handle.net/20.500.14352/129991Legislators in many jurisdictions have made some efforts in the tax field to develop and support circular economy patterns aligned with the Sustainable Development Goals hereto. However, these relatively recent legislative efforts have often been bound to the economic activities carried out within the geographical borders of a specific level of governmental jurisdiction (i.e. under national, regional or municipal control). This contribution will address the need for policymakers to map and consider any existing strengths and weaknesses in their own economies and the room for potential growth, analyzing the corresponding ones in other (neighboring) municipalities, regions or nations. This new way of thinking to devise a sort of moon-like crescent progression could result in the more effective promotion of broader schemes of circular economy. Thus, the latter could be achieved to their full extent, both independently and in whole. Subsequently, lawmakers should assess the impact of their concurrent tax systems, pinpointing any actual handicaps to the better endorsement of circular initiatives. Solo actions should only be considered an initial step, as more ambitious plans may be envisaged to overcome the negative isolated outcomes of compartmentalized tax policies. That problem might be well solved through the coordinated design of correlated tax incentives between parallel competent authorities. Sadly, the possibilities offered by the use of tax measures in delivering positive spillover effects elsewhere have largely remained unexplored so far. This should change. The integrated approach, proposed here, leads to the implementation of different types of fiscally interconnected circuits that are in a position overcome territorial views when exerting the power to tax. The interactions through these circuits will probably demand future institutional changes to adapt the current structures for the flexible creation and application of some linking of financial and tax rules, although they have often been discussed separately since its conception. This innovative design would only be bilaterally (or even multilaterally) applied in places with complementary activities which, when eventually connected, are conducive to a bigger joint circularity. Therefore, the connection of still small non-circular circuits, that aims at increasing circularity in total, could be facilitated through purposive taxation, so offer meets demand of sustainable products. This could happen in cases where there is a critical natural dependence in value chains due to the context, or where the commercial flow among economic zones is of a relatively high intensity. This could purport environmental, social and governance benefits for the population in both involved areas (or even a broader scope). Consistently, the standpoint from the institutions involved in taxation concerning the last accomplishments on circular economy must continue evolving, and, in this sense, come out of themselves and look unto others. Tax authorities now have the opportunity to reflect on if and how certain current, pro-circularity measures in their inner circles may be scalable — finding ways to apply them together to some strategic sectors, learning from collaborative experiences and expanding this combined system to other related sectors. In the end, when it comes to facing how further circularity gaps can be filled, the optimization of the tax perspective calls for the establishment of adequate channels that help overcoming geographical constraints.engjournal articlehttps://www.rdti.it/sites/default/files/allegati/3.2024.pdfrestricted access347.73Circular economyTaxationIncentivesCoordinationTerritorial limitsMatchingDerecho financiero5605.06 Derecho Fiscal