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Daniel Bunn
Elke Asen
International tax
competitiveness Index
2019
Introduction
1
The International Tax Competitiveness Index
2
2019 Rankings
2
Table 1. 2019 International Tax Competitiveness Index Rankings
3
Notable Changes from Last Year
4
Belgium
4
Canada
4
Ireland
4
Korea
4
Poland
4
Slovenia
4
Table 2. Changes from Last Year
5
Turkey
6
United Kingdom
6
Corporate Income Tax
6
Combined Top Marginal Corporate Income Tax Rate
6
Table 3. Corporate Taxes
7
Cost Recovery
7
Tax Incentives and Complexity
10
Individual Taxes
12
Table 4. Individual Taxes
13
Taxes on Ordinary Income
14
Complexity
15
Capital Gains and Dividends Taxes
15
Consumption Taxes
17
Consumption Tax Rate
17
Table 5. Consumption Taxes
18
Consumption Tax Base
19
Complexity
19
Property Taxes
20
Real Property Taxes
20
Table 6. Property Taxes
21
Wealth and Estate Taxes
22
Capital, Wealth, and Property Taxes on Businesses
23
TABLE OF CONTENTS
International Tax System
25
Territoriality
27
Table 7. International Tax System
26
Withholding Taxes and Tax Treaties
29
International Tax Regulations
29
Country Profiles
33
Appendix
45
Detailed Tables
45
Table A. Corporate Taxes
45
Table B. Individual Taxes
47
Table C. Consumption Taxes
48
Table D. Property Taxes
49
Table E. International Tax Rules
51
Methodology
54
Methodological Changes
56
Data Sources
58
TAX FOUNDATION | 1
Introduction
The structure of a country’s tax code is an important determinant of its economic performance.
A well-structured tax code is easy for taxpayers to comply with and can promote economic
development while raising sufficient revenue for a government’s priorities. In contrast, poorly
structured tax systems can be costly, distort economic decision-making, and harm domestic
economies.
Many countries have recognized this and have reformed their tax codes. Over the past few
decades, marginal tax rates on corporate and individual income have declined significantly across
the Organisation for Economic Co-operation and Development