Tax policy in South East Europe

Effective tax policy aims to strike a balance between the tax burden on enterprises and individuals, while still allowing the government to raise the revenue required to deliver public services and finance public policy objectives. Three sub-dimensions make up the overall Tax Policy Dimension. The Corporate Tax Policy Sub-Dimension analyses to what extent tax legislation fosters an environment conducive to business and effective tax revenue collection, in the form of tax incentives, transfer pricing rules, tax treaties and regional co-operation. The Tax Administration Sub-Dimension investigates the functions of tax administrators and their ability to ensure tax compliance. The Tax Analysis Sub-Dimension evaluates the ability of tax authorities to collect tax statistics and analyse tax policy effectiveness and their impact on government budgets.