There is a drastic decrease in the largest economies all over the world. Recently there have been a few tax reforms in the U.S, which lead to the statutory corporate income tax rate. Nowadays, the United States is considered to be the fourth country with the highest corporate income tax rate. In most European countries corporate income tax rates are lower than in other countries.

The World’s Highest and Lowest Corporate Tax Rates

As a rule, in many countries, tax rates related to the corporate sector are below 30 percent. Let’s dive deep and try to figure out the countries with the highest and lowest corporate tax rates. The biggest part of the 208 separate jurisdictions has corporate tax rates under 25 percent. The middle tax rate of these jurisdictions is 23.03 percent, according to GDP. The U.S. is considered to be the 83rd with the highest corporate tax rate along with 25.84 percent of the statutory rate. Nine of the twenty countries with the highest corporate income tax rates are separated in Africa, Europe, and Asia; another six are located in the United States. The rest of the countries with developed economies in the top twenty are located in France, 34.43%, India 35%, and Brazil 34%.

  • The United Arab Emirates 55%
  • Comoros 50%
  • Puerto Rico 39%
  • Suriname 36%
  • Chad 35%
  • Congo 35%
  • Guinea 35%
  • India 35%
  • Kiribati 35%
  • Malta 35%
  • Sudan 35%
  • France 34.43%
  • Brazil 34%
  • Venezuela 34 %

And here is the list of the countries with the lowest statutory corporate tax rates. Two of them, Ireland and Hungary, have the lowest tax rate, with 12.5 %.

Cyprus 12.5 %

Ireland 12.5%

Macao 12%

Moldova 12%

Bosnia and Herzegovina 10%

Bulgaria 10%

Gibraltar 10%

Kyrgyzstan 10%

Macedonia 10%

Paraguay 10%

Qatar 10%

Hungary 9 %

Montenegro 9%

Uzbekistan 7.5%

The majority of these countries are small islands and do not enforce a corporate income tax.

Corporate Tax Rates in Different Regions

Corporate Tax rates are very different in separate regions. For Example, South Africa has the highest tax rate compared to other regions with 28.81%. At the same time, in Europe, the corporate tax rate is 18.38 %. The highest corporate tax rate is in South America, with 32.2%.

In developed countries, corporate tax rates are higher than in countries with low economic development. For example, in all the member countries of the G7 and the BRICS, the corporate income tax rate is 27.63 or 28.40 percent.

Conclusion

Corporate tax rates are continuously falling all over the world. There are some countries that reduce their corporate tax rates to attract more investors.

We at Prestige Auditors believe in providing our clients with as much info as possible. Who knows? Maybe one day you’ll want to set a business somewhere outside of the U.S.! For now, we are happy to help you with your new business tax exemption, dropshipping taxes, setting up an online store, and a wide variety of ecommerce business solutions.

 

 

 

 

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