Tax system in Poland compared with other OECD countries in 2018

According to a report published by the Tax Foundation, Poland was ranked 33rd in terms of competitiveness and tax neutrality among 35 countries belonging to the Organization for Economic Cooperation and Development (OECD). Only Italy and France proved less competitive than Poland. For the fifth year in a row Estonia is the most competitive country. According to the authors of the ranking, Estonia owes it mainly to corporate tax (20 per cent), which applies only to paid profits and flat tax rate for income of natural persons (20 per cent). The top ten also included Latvia, New Zealand, Luxembourg, the Netherlands, Switzerland, Sweden, Australia, the Czech Republic and Austria. Relatively well Poland only fell in the category of corporate taxation (9th place in the subcategory). In terms of consumption taxation, Poland took the last (35) place. What is the subject of the assessment? Here are the explanations of the authors:

The 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 competitive tax code is one that keeps marginal tax rates low. In today’s globalized world, capital is highly mobile. Businesses can choose to invest in any number of countries throughout the world to find the highest rate of return. Separately, a neutral tax code is simply one that seeks to raise the most revenue with the fewest economic distortions. This means that it doesn’t favor consumption over saving, as happens with investment taxes and wealth taxes. This also means few or no targeted tax breaks for specific activities carried out by businesses or individuals. A tax code that is competitive and neutral promotes sustainable economic growth and investment while raising sufficient revenue for government priorities.


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