Lithuania has 4th most competitive tax system

Lithuania has the 4th most competitive tax system among member countries of the Organization for Co-operation and Development, the latest figures from the US think-tank Tax Foundation show.

Among 36 OECD countries, Lithuania is only behind Estonia, New Zealand and Latvia.

Lithuania’s strengths include the facts that business investments in machinery, buildings, and intangibles receive better-than-average tax treatment; Lithuania’s corporate tax rate is 15 percent, well below the OECD average of 23.6 percent; and Lithuania’s taxes on labor are relatively flat, allowing the government to raise revenue from taxes on workers with very few distortions.

Lithuania comes in third in terms of corporate taxes and individual taxes, 7th in terms of property taxes, 17th in terms of international tax riles and 24th in terms of consumption taxes.

Switzerland, Luxembourg, Australia, Sweden, The Netherlands and the Czech Republic also got into the Top-10.