Estonia

Estonia's Rankings
CategoryRankScore
Overall Rank1100
Corporate Taxes299.74
Individual Taxes1100
Consumption Taxes981.47
Property Taxes1100
International Tax Rules1184.53

Estonia ranks 1st overall on the 2019 International Tax Competitiveness Index, the same as in 2018, and for the sixth consecutive year.


Strengths

  • Estonia's corporate income tax system only taxes distributed earnings, allowing companies to reinvest their profits tax-free.
  • The VAT applies to a broad base and has a low compliance burden.
  • Property taxes only apply to the value of land.

Weaknesses

  • Estonia has tax treaties with just 58 countries, below the OECD average (77 countries).
  • Estonia's territorial tax system is limited to European countries.
  • Estonia's Controlled Foreign Corporation rules are more stringent than the average OECD country.

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