OECD corporate tax initiative and the forthcoming EU directive will change the mode of tax competition among countries. What will the outcomes be? Where will the competition shift and how much leeway will countries have to define their tax base, rules, and timing? These and other questions were raised during an expert workshop, organized by Lithuanian Free Market Institute. 

The workshop was held on 3rd December, in Vilnius. There were participants from Lithuania and foreign countries.

The main questions were discussed:

• How will Estonia and countries with a distributed CIT model have to accommodate the OECD and EU rules? What features of the distributed CIT model will have to be changed and what may remain intact? How will the OECD and EU rules change incentives for local and foreign investors and how to balance those interests?
• What are the CIT reform prospects for countries with a traditional CIT regime incorporating diverse tax incentives? What features of the Lithuanian regime will have to be slashed?
• What principles should safeguard sound competition and sustain corporate taxation favorable for investment and growth?