The Tax Complexity Index – A Survey-Based Country Measure of Tax Code and Framework Complexity

This paper introduces the Tax Complexity Index (TCI). The TCI comprehensively measures complexity of countries’ corporate income tax systems faced by multinational corporations. It builds on surveys highly experienced consultants largest international services networks. is composed a code subindex covering regulations and framework processes features. For sample 100 countries, we find that varies considerably across also vary within countries. Among others, strongly driven transfer pricing in audits framework. When analyzing associations with other country characteristics, identify different patterns. example, positive association GDP negative complexity, suggesting economically developed countries tend to have more complex codes less frameworks. Overall, can serve as valuable proxies future research supportive tools for variety firm decisions national policy discussions.