21.10.2020 - Economy

Latvia ranks 2nd in International Tax Competitiveness Index

The International Tax Competitiveness Index (ITCI) seeks to measure the extent to which a country’s tax system adheres to two important aspects of tax policy: competitiveness and neutrality.

To measure whether a country’s tax system is neutral and competitive, the ITCI looks at more than 40 tax policy variables. These variables measure not only the level of tax rates, but also how taxes are structured. The Index looks at a country’s corporate taxes, individual income taxes, consumption taxes, property taxes, and the treatment of profits earned overseas. The ITCI gives a comprehensive overview of how developed countries’ tax codes compare, explains why certain tax codes stand out as good or bad models for reform, and provides important insight into how to think about tax policy.

According to the newest research results, Latvia has the 2nd best best tax code in the OECD, leaving behind neighbours Lithuanians and several bigger economies, such as Sweden, Australia, Germany, Canada, United States, United Kingdom and others. 

Source: International Tax Competitiveness Index 2020 by Tax Foundation
 

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