The 2025 International Tax Competitive Index, produced by the Tax Foundation, assesses the structure of a country’s tax code as a determining factor of its economic performance. A well-structured tax code is easy for taxpayers to comply with and can promote economic development while raising sufficient revenue for a government’s priorities. In contrast, poorly structured tax systems can be costly, distort economic decision making and harm domestic economies.
Many countries have recognized this, according to the Tax Foundation, and have reformed their tax codes. Over the past few decades, marginal tax rates on corporate and individual income have declined significantly across the Organization for Economic Cooperation and Development. Now, most OECD nations raise a significant amount of revenue from broad-based taxes such as payroll taxes and value-added taxes.
The five countries that saw the largest improvements in their tax competitiveness over the past 12 years ar
