Latvia's tax system third most competitive in OECD

According to the Washington-based Tax Foundation think tank, Latvia's tax system is the third most competitive in the OECD, ranking behind Estonia and New Zealand.

"Latvia, which recently joined the OECD, has a relatively low corporate tax rate of 15 percent, speedy cost recovery, and a flat individual income tax," notes the report.

The index seeks to measure the extent to which a country’s tax system adheres to two important aspects of tax policy: competitiveness and neutrality. 

A competitive tax code is one that keeps marginal tax rates low, while a neutral tax code is one that seeks to raise the most revenue with the fewest economic distortions. 

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