News

In an increasingly globalized world, many individuals and corporations work and do business abroad. As a result, jurisdictions need to define how income earned in foreign countries is taxed. Otherwise, income could be taxed in more than one country, resulting in double taxation. To avoid this, countries have negotiated double tax agreements (DTAs). These tax
0 Comments
The OECD recently released the 2018 results of their “Risks that Matter Survey.” This survey covers a broad range of policy issues that people face in countries around the world. The survey covered more than 22,000 people aged 18 to 70 years old in 21 OECD countries. Several of the survey questions elicited responses on
0 Comments
The Arkansas General Assembly  concluded its 2019 session after accomplishing one of its key priorities, tax reform. After two years of intense debate and study, the Natural State has passed a series of tax reforms to improve the competitiveness of the state’s tax code. Individual Income Tax Reform The General Assembly pushed through its third
0 Comments
The Tax Foundation’s International Tax Competitiveness Index (ITCI) seeks to measure the extent to which a country’s tax system adheres to two important aspects of tax policy: competitiveness and neutrality. A tax code that is competitive and neutral promotes sustainable economic growth and investment while raising sufficient revenue for government priorities. Published annually, the ITCI
0 Comments
As today’s tax map shows, real property taxes vary greatly across European countries. Real property taxes are levied on a recurrent basis on the value of taxable property such as land, often including buildings and structures on the land. Because land is an immobile asset, property taxes on the value of land are generally seen
0 Comments
Key Findings A capital allowance is the percentage of total investment that a business can recover through the tax code via depreciation. Estonia and Latvia have the best capital cost recovery systems in the Organisation for Economic Co-operation and Development (OECD). Canada has adopted temporary full expensing for investments in assets like machinery, responding to
0 Comments
As with capital investment, businesses cannot immediately deduct the full cost of inventory purchases against taxable income. Instead, the cost of inventories is deducted when sold and the deduction amount depends on the inventory valuation method. Today’s map shows which of the three inventory valuation methods European countries allow their businesses to use for tax
0 Comments
This week’s tax map shows the number of hours it takes businesses across Europe to comply with the Value-Added Tax. The Value-Added Tax (VAT) is considered one of the most efficient and neutral forms of taxation. When designed with a low rate and a broad tax base, it limits economic distortions while raising sufficient tax
0 Comments
 Key Findings Education and training are investments in human capital and, over time, increase productivity and economic growth as human capital accumulates. Research shows that human capital investment and accumulation leads to widespread economic gains for individuals, firms, and economies. Tax treatment affects decisions to invest in human capital and can lead to distortions in
0 Comments
Last week the Organisation for Economic Co-operation and Development (OECD) hosted a public consultation on several proposals to rearrange international tax rules. The policies up for discussion include three separate approaches to reallocate taxing rights among countries and two proposals to institute a minimum level of taxation for multinational corporations. In the context of the
0 Comments
Today we continue our series on tax complexity with a map showing the hours it takes businesses across Europe to comply with labor taxes. Tax complexity imposes a real cost on businesses and the economy. Complex tax codes require firms to devote resources to tax compliance instead of doing other productive activities. Although labor taxes
0 Comments