For the seventh year in a row, Estonia has the best tax code in the OECD. Its top score is driven by four positive features of its tax system.
First, it has a 20 percent tax rate on corporate income that is only applied to distributed profits.
Second, it has a flat 20 percent tax on individual income that does not apply to personal dividend income.
Third, its property tax applies only to the value of land, rather than to the value of real property or capital. Finally, it has a territorial tax system that exempts 100 percent of foreign profits earned by domestic corporations from domestic taxation, with few restrictions.
Read more: https://taxfoundation.org/