- Purpose of the Index: The International Tax Competitiveness Index (ITCI) evaluates OECD tax systems across more than 40 variables, focusing on competitiveness (low marginal effective rates that do not drive away mobile investment) and neutrality (raising revenue with minimal economic distortions and targeted carve-outs).
- OECD Trends & Divergence: While many countries have adjusted corporate tax bases and rates, tax systems are increasingly being used in trade and tax disputes; overall performance varies widely across member states, with nations like France, Colombia, and Italy ranking at the bottom due to less competitive, more distortionary structures.
- Top Performer: Estonia ranks 1st for the 13th consecutive year, driven by key structural features: a corporate income tax applied only to distributed profits (22%), a flat personal income tax, a property tax levied strictly on land value rather than capital, and a comprehensive territorial tax regime.
Competitiveness of Belgium:
According to the 2026 ITCI rankings:
- Overall Position: Belgium ranks 27th out of 38 OECD countries with an overall score of 63.5, placing it in the lower tier of OECD economies.
- Category Breakdown:
- Relative Strengths: Belgium performs comparatively better in Individual Taxes (ranked 15th) and Corporate Tax (ranked 16th).
- Relative Weaknesses: Its overall ranking is weighed down by less competitive scores in Cross-Border Tax Rules (21st), Consumption Taxes (25th), and Property Taxes (28th).
Source Tax Foundation
