Estonia has the most competitive tax system in the OECD – for the sixth year in a row 2019-11-04T13:01:13+00:00

Cover: A piggy bank in Estonian flag colours. The image is illustrative.

Estonia has the most competitive tax system in the OECD – for the sixth year in a row


According to the Tax Foundation, Estonia has the most competitive tax system in the Organisation for Economic Co-operation and Development – a ranking the country has held for the last six years.

The Tax Foundation’s 2019 International Tax Competitiveness Index points out that Estonia ranks first overall, the same as in 2018, and for the sixth consecutive year.

The foundation says Estonia’s strengths are that the country’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; and that property taxes in the country only apply to the value of land.

The Estonian tax system does have some weaknesses, though, according to the foundation, but they’re relatively insignificant. For example, the Tax Foundation points out that Estonia has tax treaties with just 58 countries, below the OECD average – which is 77 countries; Estonia’s territorial tax system is limited to European countries; and that Estonia’s Controlled Foreign Corporation rules are more stringent than the average OECD country.

Read more




Are you interested in becoming a member of the vibrant Norwegian-Estonian business community? Are you looking for contacts, ideas and help for developing your company? What about learning from the best practices and experiences of our CEO and board members to take your organization to the next level? Ready to expand your network? Join NECC today and the power of membership will work for you.




Established in 2007, Norwegian-Estonian Chamber of Commerce (NECC, in Norwegian: Norsk-Estisk Handelskammer, in Estonian: Norra-Eesti Kaubanduskoda) is a non-profit membership based business association for companies with Norwegian-Estonian share capital, management or co-operation. We facilitate professional networking, seminars of interests, provide relevant information regarding both Estonia and Norway and promote Norwegian companies, competence and business values.


Join our newsletter and be the first to find out all the important news.