OECD Ranks the US Tax Code 32 of 34 for Tax Competitiveness
The ITCI attempts to determine which countries provide the best tax environment for investment and business growth/development by measuring the competitiveness of tax systems in the various countries that belong to the OECD. Rankings are based on over 40 tax policy variables in five categories:
- Corporate income taxes
- Individual taxes
- Consumption taxes
- Property taxes
- Treatment of foreign earnings
Trailed only by Portugal and France, the US tax code received a low ranking primarily for its high federal corporate tax rate, and because it is one of the six remaining countries in the OECD with a worldwide system of taxation.
The Report finds that Estonia has the most competitive tax system, and as such, was ranked number one. Estonia’s low corporate tax rate, lack of double taxation on dividend income, flat individual tax rate and a property tax that taxes only land makes them most competitive. On the other hand, France was ranked as having the least competitive tax system. France maintains high corporate tax rates, high property taxes and high individual taxes, thus landing them at number 34.
To view the full report, please click on the below link.
International Tax Competitiveness Index
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If you have any questions about this World Business & Tax Update, please contact your WithumSmith+Brown professional, a member of WS+B’s International Services Group or email us at [email protected].
Kimberlee Phelan, CPA, MBA
Practice Leader, International Services Group
609.520.1188
[email protected]
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