Attractive Tax System Should Turn More Heads, Exec Says (7)
The director of Molycorp Silmet, David O'Brock, praised Estonia's tax system at a conference today, but said more should be done to promote it among foreign investors.
Speaking at the event, which was organized by Enterprise Estonia, O'Brock said Estonia's tax system caught him by surprise, in a good sense, when he came to Estonia, hinting at the fact that more catering to foreign investors could be useful for boosting awareness of the country's attractive policies.
O'Brock is not the first to laud Estonia's tax system, which has a reputation for being business friendly. Estonia has a flat tax system. Moreover, businesses registered in Estonia don't have to pay income tax on retained earnings, and dividends are only subject to the 21 percent income tax while not subject to the 33 percent social tax. Formalities are also relatively uncomplicated: most companies have to file just two returns a month and an annual report, all of which can be done online.
O'Brock's firm, Molycorp, a rare earth metals producer based in the US, came to Estonia in 2011, when it acquired the Silmet plant. Molycorp Silmet was named Exporter of the Year in 2012, as one of Europe's biggest rare earth metal producers.