Avoids promoting tax evasion
This indicator evaluates whether a country includes worldwide capital income in its income tax base and if it grants unilateral tax credits for foreign tax paid on certain foreign capital income. The types of capital income included are interest and dividend payments. Three different payment scenarios are considered. First, payments received by an independent legal person. Second, payments received by a related party legal person. Third, payments received by a natural person. A 50% transparency score is awarded for jurisdictions which grant unilateral tax credits for all payment scenarios for one type of payment (dividend or interest). If unilateral tax credits are granted only in some payment scenarios, for each single