Tuesday, May 21, 2024

Global Tax Analysis: Comparing Nations with the Highest and Lowest Corporate Taxation

Recent data unveils the global variance in tax rates, spanning from notably low to notably high figures. If we talk about the lowest tax rates, they are found in smaller countries to attract investment from multinational companies. Many multinational companies have given $1 trillion for investment in those countries in 2022. Some of these countries have 0% tax rates while some have 5% tax rates. The global average corporate tax rate is 23.5%.

Based on the data from Tax Foundation, the country with the lowest tax rate is Barbados with 5.5% tax rate as of 2023. It is followed by Turkmenistan which has an 8.0% tax rate. Hungary and UAE both have 9.0% tax rate. Other countries included in the top ten list of countries with lowest tax rates are Andorra, Bosnia and Herzegovina, Bulgaria, Kosova, Kyrgyzstan and Paraguay. All these countries have a tax rate of 10.0%. If we compare these tax rates with the countries with lowest tax rates in the 1980s, Hong Kong was the country with lowest tax rate at 17.0%. In 2023, 91% of the countries across jurisdiction have a tax rate under 30%.

Now talking about the countries with highest tax rates, Comoros takes the lead with 50.0% tax rate. It is followed by Puerto Rico with 37.5% tax rate and Suriname with 36.0% tax rate. Other countries which are in the top ten list of countries with highest tax rates are Argentina, Chad, Colombia, Cuba, Equatorial Guinea, Malta and Sudan. All these countries have a tax rate of 35.0%. This list shows that countries in Africa and South America have the highest tax rates, with Malta being the only European country. If we compare these tax rates to countries with the highest tax rates in the 1980s, Ghana was at the top with 60% tax rate. Countries like India, China and the United Kingdom also had tax rates above 50%.

Exploring Nations with the Lowest Corporate Taxation Rates

Country Continent Corporate Tax Rate
Comoros Africa 50.00%
Puerto Rico North America 37.50%
Suriname South America 36.00%
Argentina South America 35.00%
Chad Africa 35.00%
Colombia South America 35.00%
Cuba North America 35.00%
Equatorial Guinea Africa 35.00%
Malta Europe 35.00%
Sudan Africa 35.00%
Sint Maarten (Dutch Part) North America 34.50%
American Samoa Oceania 34.00%
Brazil South America 34.00%
Venezuela (Bolivarian Republic of) South America 34.00%
Cameroon Africa 33.00%
Saint Kitts and Nevis North America 33.00%
Morocco Africa 32.00%
Mozambique Africa 32.00%
Namibia Africa 32.00%
Portugal Europe 31.50%
Australia Oceania 30.00%
Benin Africa 30.00%
Burundi Africa 30.00%
Central African Republic Africa 30.00%
Costa Rica North America 30.00%
Democratic Republic of the Congo Africa 30.00%
El Salvador North America 30.00%
Eritrea Africa 30.00%
Ethiopia Africa 30.00%
Gabon Africa 30.00%
Haiti North America 30.00%
Honduras North America 30.00%
India Asia 30.00%
Kenya Africa 30.00%
Kiribati Oceania 30.00%
Malawi Africa 30.00%
Mali Africa 30.00%
Mexico North America 30.00%
Micronesia (Federated States of) Oceania 30.00%
Montserrat North America 30.00%
New Caledonia Oceania 30.00%
Nicaragua North America 30.00%
Niger Africa 30.00%
Nigeria Africa 30.00%
Niue Oceania 30.00%
Papua New Guinea Oceania 30.00%
Rwanda Africa 30.00%
Saint Lucia North America 30.00%
Senegal Africa 30.00%
Solomon Islands Oceania 30.00%
South Sudan Africa 30.00%
Sri Lanka Asia 30.00%
Trinidad and Tobago North America 30.00%
Uganda Africa 30.00%
United Republic of Tanzania Africa 30.00%
Zambia Africa 30.00%
Germany Europe 29.94%
Japan Asia 29.74%
Peru South America 29.50%
Pakistan Asia 29.00%
Congo Africa 28.00%
Grenada North America 28.00%
New Zealand Oceania 28.00%
Saint Vincent and the Grenadines North America 28.00%
Syrian Arab Republic Asia 28.00%
Italy Europe 27.81%
Bangladesh Asia 27.50%
Burkina Faso Africa 27.50%
Swaziland Africa 27.50%
Chile South America 27.00%
Dominican Republic North America 27.00%
Gambia Africa 27.00%
Samoa Oceania 27.00%
South Africa Africa 27.00%
Togo Africa 27.00%
Greenland North America 26.50%
Republic of Korea Asia 26.50%
Canada North America 26.21%
Algeria Africa 26.00%
Falkland Islands (Malvinas) South America 26.00%
France Europe 25.83%
Bonaire, Sint Eustatius and Saba North America 25.80%
Netherlands Europe 25.80%
United States of America North America 25.77%
Angola Africa 25.00%
Antigua and Barbuda North America 25.00%
Belgium Europe 25.00%
Bhutan Asia 25.00%
Bolivia (Plurinational State of) South America 25.00%
China Asia 25.00%
Cote d'Ivoire Africa 25.00%
Djibouti Africa 25.00%
Dominica North America 25.00%
Ecuador South America 25.00%
French Polynesia Oceania 25.00%
Ghana Africa 25.00%
Guatemala North America 25.00%
Guinea Africa 25.00%
Guinea-Bissau Africa 25.00%
Guyana South America 25.00%
Iran (Islamic Republic of) Asia 25.00%
Jamaica North America 25.00%
Lesotho Africa 25.00%
Liberia Africa 25.00%
Mauritania Africa 25.00%
Monaco Europe 25.00%
Mongolia Asia 25.00%
Nauru Oceania 25.00%
Nepal Asia 25.00%
Panama North America 25.00%
Philippines Asia 25.00%
Saint Helena Africa 25.00%
Sao Tome and Principe Africa 25.00%
Seychelles Africa 25.00%
Sierra Leone Africa 25.00%
Spain Europe 25.00%
Tonga Oceania 25.00%
Turkey Asia 25.00%
United Kingdom of Great Britain and Northern Ireland Europe 25.00%
Uruguay South America 25.00%
Luxembourg Europe 24.94%
Zimbabwe Africa 24.72%
Austria Europe 24.00%
Malaysia Asia 24.00%
United States Virgin Islands North America 23.10%
Israel Asia 23.00%
Egypt Africa 22.50%
Cabo Verde Africa 22.44%
Aruba North America 22.00%
Botswana Africa 22.00%
Curacao North America 22.00%
Denmark Europe 22.00%
Greece Europe 22.00%
Indonesia Asia 22.00%
Myanmar Asia 22.00%
Norway Europe 22.00%
Guam Oceania 21.00%
Northern Mariana Islands Oceania 21.00%
Slovakia Europe 21.00%
Sweden Europe 20.60%
Afghanistan Asia 20.00%
Aland Islands Europe 20.00%
Azerbaijan Asia 20.00%
Belarus Europe 20.00%
Cambodia Asia 20.00%
Cook Islands Oceania 20.00%
Estonia Europe 20.00%
Fiji Oceania 20.00%
Finland Europe 20.00%
Iceland Europe 20.00%
Jordan Asia 20.00%
Kazakhstan Asia 20.00%
Lao People's Democratic Republic Asia 20.00%
Latvia Europe 20.00%
Libya Africa 20.00%
Madagascar Africa 20.00%
Russian Federation Europe 20.00%
Saint Martin (French Part) North America 20.00%
Saudi Arabia Asia 20.00%
Taiwan Asia 20.00%
Thailand Asia 20.00%
Viet Nam Asia 20.00%
Yemen Asia 20.00%
Switzerland Europe 19.65%
Czechia Europe 19.00%
Poland Europe 19.00%
Slovenia Europe 19.00%
Brunei Darussalam Asia 18.50%
Armenia Asia 18.00%
Croatia Europe 18.00%
Faroe Islands Europe 18.00%
Tajikistan Asia 18.00%
Ukraine Europe 18.00%
Lebanon Asia 17.00%
San Marino Europe 17.00%
Singapore Asia 17.00%
China, Hong Kong Special Administrative Region Asia 16.50%
Romania Europe 16.00%
Albania Europe 15.00%
Georgia Asia 15.00%
Iraq Asia 15.00%
Kuwait Asia 15.00%
Lithuania Europe 15.00%
Maldives Asia 15.00%
Mauritius Africa 15.00%
Montenegro Europe 15.00%
Oman Asia 15.00%
Serbia Europe 15.00%
State of Palestine Asia 15.00%
Tunisia Africa 15.00%
Uzbekistan Asia 15.00%
Cyprus Europe 12.50%
Gibraltar Europe 12.50%
Ireland Europe 12.50%
Liechtenstein Europe 12.50%
China, Macao Special Administrative Region Asia 12.00%
Republic of Moldova Europe 12.00%
Andorra Europe 10.00%
Bosnia and Herzegovina Europe 10.00%
Bulgaria Europe 10.00%
Kosovo (Republic of) Europe 10.00%
Kyrgyzstan Asia 10.00%
Paraguay South America 10.00%
Qatar Asia 10.00%
The Former Yugoslav Republic of Macedonia Europe 10.00%
Timor-Leste Oceania 10.00%
Hungary Europe 9.00%
United Arab Emirates Asia 9.00%
Turkmenistan Asia 8.00%
Barbados North America 5.50%
Anguilla North America 0.00%
Bahamas North America 0.00%
Bahrain Asia 0.00%
Belize North America 0.00%
Bermuda North America 0.00%
British Virgin Islands North America 0.00%
Cayman Islands North America 0.00%
Guernsey Europe 0.00%
Isle of Man Europe 0.00%
Jersey Europe 0.00%
Saint Barthelemy North America 0.00%
Tokelau Oceania 0.00%
Turks and Caicos Islands North America 0.00%
Vanuatu Oceania 0.00%
Wallis and Futuna Islands Oceania 0.00%

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by Arooj Ahmed via Digital Information World

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