Fri. Jun 2nd, 2023

Content Assessment: Optimized for Business? The Most Competitive Tax Systems of OECD Countries

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A short percentage-based assessment of the qualitative benefit of the recent post highlighting the Tax Foundation's International Tax Competitive Index 2022.

Editor’s Note: According to the International Tax Competitiveness Index 2021 published by the Tax Foundation, one of the nation’s leading independent tax policy think tanks, the structure of a country’s tax code is one of the determining factors 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. To better understand the variety of approaches to taxation among Organisation for Economic Co-operation and Development (OECD) countries, the Tax Foundation developed the International Tax Competitiveness Index (ITCI) to allow for relative comparisons of OECD countries’ tax systems with respect to competitiveness and neutrality. This index may be beneficial for business professionals in the field of cybersecurity, information governance, and legal discovery as they consider international expansion and targeted acquisitions.

Founded as an Estonian company in 2020, ComplexDiscovery OÜ operates under the Estonian tax code. As an Estonian company, ComplexDiscovery OÜ offers business partners and acquiring companies established access to a European Union country with one of the most competitive tax systems in the world.

Backgrounder: Based in Washington, DC, The Tax Foundation is the nation’s leading independent tax policy nonprofit. Since 1937, principled research, insightful analysis, and engaged experts have informed smarter tax policy at the federal, state, and global levels. For over 80 years, their goal has remained the same: to improve lives through tax policies that lead to greater economic growth and opportunity. Additionally, based in Paris, France, and currently consisting of 38 member countries, the Organisation for Economic Co-operation and Development (OECD) is an international organization that works to build better policies for better lives. Their stated goal is to shape policies that foster prosperity, equality, opportunity, and well-being for all. It draws on 60 years of experience and insights to better prepare the world of tomorrow.

Report from the Tax Foundation by Daniel Bunn and Lisa Hogreve*

International Tax Competitiveness Index 2022


For the ninth year in a row, Estonia has the best tax code in the OECD. Its top score is driven by four positive features of its tax system. First, it has a 20 percent tax rate on corporate income that is only applied to distributed profits. Second, it has a flat 20 percent tax on individual income that does not apply to personal dividend income. Third, its property tax applies only to the value of land, rather than to the value of real property or capital. Finally, it has a territorial tax system that exempts 100 percent of foreign profits earned by domestic corporations from domestic taxation, with few restrictions.

While Estonia’s tax system is the most competitive in the OECD, the other top countries’ tax systems receive high scores due to excellence in one or more of the major tax categories. Latvia, which recently adopted the Estonian system for corporate taxation, also has a relatively efficient system for taxing labor income. New Zealand has a relatively flat, low-rate individual income tax that also largely exempts capital gains (with a combined top rate of 39 percent), a well-structured property tax, and a broad-based VAT. Switzerland has a relatively low corporate tax rate (19.7 percent), a low, broad-based consumption tax, and an individual income tax that partially exempts capital gains from taxation. Luxembourg has a broad-based consumption tax and a competitive international tax system.

France has the least competitive tax system in the OECD. It has a wealth tax on real estate, a financial transaction tax, and an inheritance tax. The French VAT covers less than 50 percent of final consumption, revealing both policy and enforcement gaps.

Countries that rank poorly on the ITCI often levy relatively high marginal tax rates on corporate income or have multiple layers of tax rules that contribute to complexity. Four of the five countries at the bottom of the rankings all have higher than average corporate tax rates. Ireland ranks poorly on the ITCI despite its low corporate tax rate. This is due to high personal income and dividend taxes and a relatively narrow VAT base. In addition, the five lowest-ranking countries have high consumption tax rates, with rates of 20 percent or higher.

Read the original announcement.

Read the Complete Report: International Tax Competitiveness Index 2022 (PDF ) – Mouseover to Scroll


Read the original report.

*Shared with permission under Creative Commons Attribution Non-Commercial 4.0 License from the Tax Foundation.

Additional Reading

Source: ComplexDiscovery


Generative Artificial Intelligence and Large Language Model Use

ComplexDiscovery OÜ recognizes the value of GAI and LLM tools in streamlining content creation processes and enhancing the overall quality of its research, writing, and editing efforts. To this end, ComplexDiscovery OÜ regularly employs GAI tools, including ChatGPT and DALL-E2, to assist, augment, and accelerate the development and publication of both new and revised content in posts and pages published (initiated in late 2022).

ComplexDiscovery also provides a ChatGPT-powered AI article assistant for its users. This feature leverages LLM capabilities to generate relevant and valuable insights related to specific page and post content published on By offering this AI-driven service, ComplexDiscovery OÜ aims to create a more interactive and engaging experience for its users, while highlighting the importance of responsible and ethical use of GAI and LLM technologies.


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ComplexDiscovery is a premier online publication renowned for providing essential insights and intelligence in the realms of cybersecurity, information governance, and legal discovery to professionals navigating these fields. As a leading source of information, the publication expertly combines original research with aggregated news to cater to a highly specialized audience. Committed to enhancing readers’ understanding of relevant topics, ComplexDiscovery stands as an impartial and comprehensive resource for exploring trends, technologies, and services associated with electronically stored information.

The driving force behind this influential publication is ComplexDiscovery OÜ, a technology marketing firm that excels in strategic planning and tactical execution for organizations operating within these sectors. Registered as a private limited company in Estonia, a global leader in digital advancements, ComplexDiscovery OÜ dedicates its primary focus to supporting the publication. The company capitalizes on its virtual presence to provide marketing consulting and services to a diverse array of clients around the world, further solidifying its reputation as a leading voice in the eDiscovery ecosystem.

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