Tax competitiveness is a concept that refers to a country’s ability to attract and retain investment, promote economic growth and create new jobs through its tax system. Under conditions of high capital and labor mobility, the design of tax policy becomes a key factor in a country’s economic attractiveness. However, the complexity of this concept requires careful consideration within tax policy with regard to the need to attract investment and generate adequate public revenues. Namely, excessive tax competition can lead to a decline in public revenues, which has a negative impact on the provision of public services and the question of the long-term sustainability of low tax rates. The aim of this paper is to analyze the current tax policy in strengthening the country’s competitiveness and its role in positioning Bosnia and Herzegovina in the currents of global competitiveness. The results of the analysis can serve as a basis for recommendations on how to improve tax policy and increase competitiveness on the international market.