In each instance of an average rate increase, the change was relatively small, with the absolute change being less than 2 percentage points between decades. Note: Table includes 21 jurisdictions because Cyprus, Ireland, and Liechtenstein all have the same tax rate. Hungary reduced its corporate income tax rate from 19 to 9 percent in 2017.[8]. 0000087491 00000 n
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The weighted average statutory rate has remained higher than the simple average over this period. + 0000003184 00000 n
[10] BRICS is a group of countries with major emerging economies.
The database provides the largest source of comparable tax revenue data, which are produced in partnership with participating countries and regional partners.
Would you consider contributing to our work? 2019 corporate tax trends around the world, Tax Expenditures, Credits, and Deductions, Small Business, Pass-throughs, and Non-profits, Sources of Government Revenue in the OECD, Opportunities for Pro-Growth Tax Reform in Austria, Tax Proposals, Comparisons, and the Economy, https://stats.oecd.org/index.aspx?DataSetCode=Table_II1, https://home.kpmg/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/corporate-tax-rates-table.html, https://github.com/TaxFoundation/worldwide-corporate-tax-rates, http://www.oecd.org/tax/tax-policy/tax-database.htm#C_CorporateCaptial, https://www.bus.umich.edu/otpr/otpr/default.asp, https://www.ers.usda.gov/data-products/international-macroeconomic-data-set/, https://taxfoundation.org/corporate-income-tax-rates-around-the-world-2017/, https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-bahrainhighlights-2019.pdf, https://taxfoundation.org/upcoming-corporate-tax-rate-reductions-developed-countries/, The former Yugoslav Republic of Macedonia, China, Macao Special Administrative Region, In general, large industrialized nations tend to have higher statutory. A well-structured tax code is easy for taxpayers to comply with and can promote economic development while raising sufficient revenue for a government’s priorities. The Tax Foundation works hard to provide insightful tax policy analysis. Elke Asen . 0000012104 00000 n
A few countries levy gross revenue taxes on businesses instead of corporate income taxes. In 1980, corporate tax rates around the world averaged 40.38 percent, and 46.67 percent when weighted by GDP. 303 0 obj
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On the other end of the spectrum, the 20 countries with the lowest non-zero statutory corporate tax rates all charge rates lower than 15 percent. Europe has the lowest regional average rate, at 20.27 percent (25.13 percent when weighted by GDP). [6] Although called the “top 20 rates,” they include 21 jurisdictions because Cameroon, Colombia, Saint Kitts and Nevis, and the Seychelles all have the same corporate income tax rate of 33 percent. These rates are often above the worldwide average.
From: January 2020 Update. [9] This tax rate can be as high as 46 percent. All these jurisdictions are small, island nations. Source: KPMG .
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Note: The table includes 21 jurisdictions because Cameroon, Colombia, Saint Kitts and Nevis, and the Seychelles all have the same tax rate. 0000008788 00000 n
Today, the average statutory rate stands at 24.18 percent, representing a 40 percent reduction over the 39 years surveyed.[12]. Table III.3 Self-employed social security contribution rates. The Tax Foundation is the nation’s leading independent tax policy nonprofit.