Importance Nowadays, capital liberalization causes the problem of capital outflow to countries with better conditions for doing business. The ease of doing business depends, inter alia, on taxation conditions, for instance, for Doing Business rating purposes. Therefore, Russia for many years has taken measures to enhance the tax system competitiveness. Objectives The paper aims to analyze international practice of tax system competitiveness and overview current trends in the Russian tax system competitiveness. Methods I apply the general-logical method to analyze interpretations of the tax system competitiveness concept, present the best-known rankings and main trends in Russia, and perform a comparative analysis of the Russian tax system and that of countries with similar level of development (using the GDP per capita indicator). Results The study reveals key factors of tax systems competitiveness. The comparison shows that by two main factor the Russian tax system is as good as that of countries with higher GDP per capita from the group of countries with similar level of development. Conclusions and Relevance The key factors of competitiveness are total tax rate, number of payments and time for payment and preparation for payment of taxes. The Russian tax system is competitive among countries with similar development level by the above mentioned two indicators.
Keywords: tax system, competitiveness, ranking, capital flow, GDP per capita
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