December 9, 2020

Corporate Tax Rates around the World, 2020

Note: All data and methodological notes are accessible in our GitHub repository.

Key Findings

  • In 2020, 10 countries made changes to their statutory corporate income tax rates. One country—Micronesia—increased its top corporate tax rate, while nine countries—Armenia, Belgium, Colombia, France, French Polynesia, Greenland, Monaco, Togo, and Zimbabwe—reduced their corporate tax rates.
  • Comoros (50 percent), Puerto Rico (37.5 percent), and Suriname (36 percent) are the countries with the highest corporate tax rates in the world, while Barbados (5.5 percent), Uzbekistan (7.5 percent), and Turkmenistan (8 percent) levy the lowest corporate rates. Fifteen jurisdictions do not impose corporate tax.
  • The worldwide average statutory corporate income tax rate, measured across 177 jurisdictions, is 23.85 percent. When weighted by GDP, the average statutory rate is 25.85 percent.
  • Europe has the lowest regional average rate, at 19.99 percent (24.61 percent when weighted by GDP). Conversely, Africa has the highest regional average statutory rate, at 28.50 percent (28.16 percent weighted by GDP).
  • The average top corporate rate among EU27 countries is 21.47 percent, 23.51 percent in OECD countries, and 24 percent in the G7.
  • The worldwide average statutory corporate tax rate has consistently decreased since 1980, with the largest decline occurring in the early 2000s.
  • The average statutory corporate tax rate has declined in every region since 1980.

Introduction

In 1980, corporate tax rates around the world averaged 40.11 percent, and 46.52 percent when weighted by GDP.[1] Since then countries have recognized the impact that high corporate tax rates have on business investment decisions so that in 2020, the average is now 23.85 percent, and 25.85 when weighted by GDP, for 177 separate tax jurisdictions.[2]

Declines have been seen in every major region of the world, including in the largest economies. The 2017 tax reform in the United States brought the statutory corporate income tax rate from among the highest in the world closer to the middle of the distribution. Whereas in 2017 the United States had the fourth highest corporate income tax rate in the world,[3] it now ranks towards the middle of the countries and tax jurisdictions surveyed.

European countries tend to have lower corporate income tax rates than countries in other regions, and many developing countries have corporate income tax rates that are above the worldwide average.

Today, most countries have corporate tax rates below 30 percent.

Notable Corporate Tax Rate Changes in 2020

Ten countries have made changes to their statutory corporate income tax rates in 2020. Micronesia was the only country to increase its top corporate tax rate, introducing a progressive corporate income tax system with a top rate of 30 percent, nine percentage points higher than the previous flat corporate tax of 21 percent.

Nine countries across five continents—Armenia, Belgium, Colombia, France, French Polynesia, Greenland, Monaco, Togo, and Zimbabwe—reduced their corporate tax rates in 2020. The tax rate reductions ranged from one percentage point in Colombia, French Polynesia, and Togo to 5.3 percentage points in Greenland.

Notable Corporate Income Tax Rate Changes in 2020
Country 2019 Tax Rate 2020 Tax Rate Change from 2019 to 2020

Africa

Togo 28% 27% -1 ppt
Zimbabwe 25.75% 24.72% -1.03 ppt

Asia

Armenia 20% 18% -2 ppt

Europe

Belgium 29.58% 25.00% -4.58 ppt
France (a) 34.43% 32.02% -2.41 ppt
Monaco (b) 31% 28% -3 ppt

North America

Greenland 31.8% 26.5% -5.3 ppt

Oceania

French Polynesia 26% 25% -1 ppt
Micronesia (Federated States of) (c) 21% 30% +9 ppt

South America

Colombia (d) 33% 32% -1 ppt

Notes:

(a)     France has further corporate tax rate reductions scheduled, resulting in a rate of 25 percent (plus 3.3 percent social surcharge, equaling a combined rate of 25.83 percent) by 2022.

(b)    Monaco has further corporate tax rate reductions scheduled, resulting in a rate of 25 percent by 2022.

(c)     Micronesia implemented a progressive corporate income tax with a top rate of 30 percent.

(d)    Colombia’s 2018/2019 tax reform introduced measures to reduce the corporate income tax rate further, to 31 percent in 2021, and 30 percent from 2022 onwards.

Scheduled Corporate Tax Rate Changes in the OECD[4]

Among OECD countries, France, the Netherlands, and Sweden have announced they will implement changes to their statutory corporate income tax rate over the coming years.

  • In France, the standard statutory corporate income tax rate was lowered to 32.02 percent (including the 3.3 percent social surcharge) in 2020. An already legislated corporate rate reduction is expected to progressively bring the corporate tax rate down to 25.83 percent by 2022.
  • In the Netherlands, the originally planned reduction of the statutory corporate tax rate applying to income exceeding €200,000 was partly reversed: The corporate rate was not decreased to 22.55 percent in 2020 as originally planned. Instead, it remains at 25 percent in 2020 and will be lowered to 21.7 percent instead of 20.50 percent in 2021.
  • In Sweden, the statutory corporate tax rate will be cut from 21.4 percent in 2020 to 20.6 percent in 2021.

The Highest and Lowest Corporate Tax Rates in the World[5]

One hundred of the 223 separate jurisdictions surveyed for the year 2020 have corporate tax rates below 25 percent and 117 have tax rates above 20 and at or below 30 percent. The average tax rate among the 223 jurisdictions is 22.57 percent.[6] The United States has the 85th highest corporate tax rate with a combined statutory rate of 25.77 percent.

The 20 countries with the highest statutory corporate income tax rates span almost every region, albeit unequally. While nine of the top 20 countries are in Africa, Europe appears only twice and Asia not at all. Of the remaining jurisdictions, two are in Oceania, and seven are in the Americas.

The only industrialized nation[7] in the top 20 is France (32.02 percent).

20 Highest Statutory Corporate Income Tax Rates in the World, 2020
Country Continent Tax Rate
Comoros* Africa 50%
Puerto Rico North America 37.5%
Suriname South America 36%
Chad Africa 35%
Democratic Republic of the Congo Africa 35%
Equatorial Guinea Africa 35%
Guinea Africa 35%
Kiribati Oceania 35%
Malta Europe 35%
Saint Martin (French Part) North America 35%
Sint Maarten (Dutch part) North America 35%
Sudan Africa 35%
Zambia Africa 35%
American Samoa Oceania 34%
Brazil South America 34%
Venezuela (Bolivarian Republic of) South America 34%
Cameroon Africa 33%
Saint Kitts and Nevis North America 33%
Seychelles Africa 33%
France Europe 32.02%

Notes: *The normal corporate tax rate is 35 percent, which applies to both Comorian companies and foreign companies deriving Comorian-source income. However, public industrial and commercial enterprises or those where the state or certain public institutions are participants are subject to a corporate tax rate of 50 percent if their turnover exceeds 500 million Comorian francs; see Bloomberg Tax, “Country Guides: Comoros,” https://www.bloomberglaw.com/product/tax/document/25590833704.

Sources: OECD, “Table II.1. Statutory corporate income tax rate,” updated April 2020, https://stats.oecd.org/index.aspx?DataSetCode=Table_II1; KPMG, “Corporate tax rates table,” https://home.kpmg/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/corporate-tax-rates-table.html; and researched individually, see Tax Foundation, “worldwide-corporate-tax-rates,” GitHub, https://github.com/TaxFoundation/worldwide-corporate-tax-rates.

On the other end of the spectrum, the 20 countries with the lowest non-zero statutory corporate tax rates all charge rates at or below 12.5 percent. Ten countries have statutory rates of 10 percent, six being small European nations (Andorra, Bosnia and Herzegovina, Bulgaria, Gibraltar, Kosovo, and Macedonia). The only two industrialized nations[8] represented among the bottom 20 countries are Ireland and Hungary. Ireland is known for its low 12.5 percent rate, which has been in place since 2003. Hungary reduced its corporate income tax rate from 19 to 9 percent in 2017.

20 Lowest Statutory Corporate Income Tax Rates in the World, 2020
(Excluding Jurisdictions with a Corporate Income Tax Rate of Zero Percent)
Country Continent Tax Rate
Barbados North America 5.5%
Uzbekistan Asia 7.5%
Turkmenistan Asia 8%
Hungary Europe 9%
Montenegro Europe 9%
Andorra Europe 10%
Bosnia and Herzegovina Europe 10%
Bulgaria Europe 10%
Gibraltar Europe 10%
Kosovo, Republic of Europe 10%
Kyrgyzstan Asia 10%
Paraguay South America 10%
Qatar Asia 10%
The former Yugoslav Republic of Macedonia Europe 10%
Timor-Leste Oceania 10%
China, Macao Special Administrative Region Asia 12%
Republic of Moldova Europe 12%
Cyprus Europe 12.5%
Ireland Europe 12.5%
Liechtenstein Europe 12.5%

Sources: OECD, “Table II.1. Statutory corporate income tax rate;” KPMG, “Corporate tax rates table;” and researched individually, see Tax Foundation, “worldwide-corporate-tax-rates/.”

Of the 223 jurisdictions surveyed, 15 currently do not impose a general corporate income tax. Except for the United Arab Emirates, all these jurisdictions are small, island nations. A handful, such as the Cayman Islands and Bermuda, are well-known for their lack of corporate taxes.

Countries without General Corporate Income Tax, 2020
Country Continent
Anguilla North America
Bahamas North America
Bahrain* Asia
Bermuda North America
British Virgin Islands North America
Cayman Islands North America
Guernsey Europe
Isle of Man Europe
Jersey Europe
Saint Barthelemy North America
Tokelau Oceania
Turks and Caicos Islands North America
United Arab Emirates* Asia
Vanuatu Oceania
Wallis and Futuna Islands Oceania

Sources: OECD, “Table II.1. Statutory corporate income tax rate”; KPMG, “Corporate tax rates table”; and researched individually, see Tax Foundation, “worldwide-corporate-tax-rates.”

Notes: *Bahrain has no general corporate income tax but has a targeted corporate income tax on oil companies, which can be as high as 46 percent. See Deloitte, “International Tax – Bahrain Highlights 2020,” last updated January 2020, https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-bahrainhighlights-2020.pdf?nc=1. The United Arab Emirates is a federation of seven separate emirates. Since 1960, each emirate has the discretion to levy up to a 55 percent corporate tax rate on any business. In practice, this tax is mostly levied on foreign banks and petroleum companies. For more information on the taxation system in the United Arab Emirates, see PwC, “Worldwide Tax Summaries – Corporate income tax (CIT) rates.”

Regional Variation in Corporate Tax Rates

Corporate tax rates can vary significantly by region. Africa has the highest average statutory corporate tax rate among all regions, at 28.50 percent. Europe has the lowest average statutory corporate tax rate among all regions, at 19.99 percent.

When weighted by GDP, South America has the highest average statutory corporate tax rate at 31.83 percent. Europe has the lowest weighted average statutory corporate income tax, at 24.61 percent.

In general, larger and more industrialized nations tend to have higher corporate income tax rates than smaller nations. The G7, which is comprised of the seven wealthiest nations in the world, has an average statutory corporate income tax rate of 27.24 percent, and a weighted average rate of 26.95 percent. OECD member states have an average statutory corporate tax rate of 23.51 percent, and a rate of 26.30 percent when weighted by GDP. The BRICS[9] have an average statutory rate of 27.40 percent, and a weighted average statutory corporate income tax rate of 26.49 percent.

Average Corporate Tax Rate by Region or Group, 2020
Region Average Rate Average Rate Weighted by GDP Number of Countries Covered
Africa 28.50% 28.16% 50
Asia 20.06% 25.37% 46
Europe 19.99% 24.61% 39
North America 26.06% 26.13% 22
Oceania 23.75% 29.74% 8
South America 27.54% 31.83% 12
G7 27.24% 26.95% 7
OECD 23.51% 26.30% 37
BRICS 27.40% 26.49% 5
EU27 21.47% 26.46% 27
G20 26.96% 26.77% 19
World 23.85% 25.85% 177

Sources: Statutory corporate income tax rates are from OECD, “Table II.1. Statutory corporate income tax rate”; KPMG, “Corporate tax rates table”; and researched individually, see Tax Foundation, “worldwide-corporate-tax-rates.” GDP calculations are from the U.S. Department of Agriculture, “International Macroeconomics Data Set.”

The following map illustrates the current state of corporate tax rates around the world. Countries in Africa and South America tend to have higher corporate tax rates than Asian and European jurisdictions. Oceania and North America’s corporate tax rates tend to be close to the world average.

2020 Corporate Tax Rates Around the World, Corporate Taxes around the World, 2020 Corporate Tax Trends

Distribution of Corporate Tax Rates[10]

Very few tax jurisdictions impose a corporate income tax at statutory rates greater than 35 percent. The following chart shows a distribution of corporate income tax rates among 223 jurisdictions in 2020. A plurality of countries (117 total) impose a rate above 20 percent and at or below 30 percent. Twenty-three jurisdictions have a statutory corporate tax rate above 30 percent and at or below 35 percent. Eighty jurisdictions have a statutory corporate tax rate at or below 20 percent, and 197 jurisdictions have a corporate tax rate at or below 30 percent.

Most countries' corporate tax rates range between 20 percent and 30 percent. 2020 corporate tax rates around the world, 2020 corporate tax trends

Over the past 40 years, corporate tax rates have consistently declined on a global basis. In 1980, the unweighted average worldwide statutory tax rate was 40.11 percent. Today, the average statutory rate stands at 23.85 percent, representing a 41 percent reduction over the 40 years surveyed.[11]

The weighted average statutory rate has remained higher than the simple average over this period. Prior to U.S. tax reform in 2017, the United States was largely responsible for keeping the weighted average so high, given its relatively high tax rate, as well as its significant contribution to global GDP. Figure 3 shows the significant impact the change in the U.S. corporate rate had on the worldwide weighted average. The weighted average statutory corporate income tax rate has declined from 46.52 percent in 1980 to 25.85 percent in 2020, representing a 44 percent reduction over the 40 years surveyed.

Corporate tax rates have continuously declined over the last 40 years, 2020 corporate tax rates around the world, 2020 corporate tax trends

Over time, more countries have shifted to taxing corporations at rates of or lower than 30 percent, with the United States following this trend with its tax changes at the end of 2017. The largest shift occurred between 2000 and 2010, with 78 percent of countries imposing a statutory rate at or below 30 percent in 2010 and only 42 percent of countries imposing a statutory rate at or below 30 percent in 2000.[12]

Corporate tax rates between 20 percent and 25 percent are most common. 2020 corporate tax rates around the world, 2020 corporate tax trends

All regions saw a net decline in average statutory rates between 1980 and 2020. The average declined the most in Europe, with the 1980 average of 44.6 percent dropping to 19.99 percent, representing a 55 percent rate reduction. South America has seen the smallest decline, with the average only decreasing by 25 percent, from 36.66 percent in 1980 to 27.54 percent in 2020.

South America saw a period (1990-2000) where the average statutory rate increased slightly at less than one percentage point, although the average rate decreased over the full 40-year period.

Corporate tax rates have declined in every region around the world over time. 2020 corporate tax rates around the world, 2020 corporate tax trends

Conclusion

Worldwide and regional average top statutory corporate tax rates have declined over recent decades, with most countries following the trend. Of 223 jurisdictions around the world, only one has increased its top corporate income tax rate in 2020, while nine countries have decreased their corporate tax rate. The trend seems to be continuing, as several countries are planning to reduce their corporate tax rates in the coming years.

Appendix

The Dataset

Scope

The dataset compiled for this publication includes the 2020 statutory corporate income tax rates of 223 sovereign states and dependent territories around the world. Tax rates were researched only for jurisdictions that are among the around 250 sovereign states and dependent territories that have been assigned a country code by the International Organization for Standardization (ISO).[13] As a result, zones or territories that are independent taxing jurisdictions but do not have their own country code are generally not included in the dataset.

In addition, the dataset includes historic statutory corporate income tax rates for the time period 1980 to 2019. However, these years cover tax rates of fewer than 223 jurisdictions due to missing data points. Please let Tax Foundation know if you are aware of any sources for historic corporate tax rates that are not mentioned in this report, as we constantly strive to improve our datasets.

Number of Countries for which the Dataset Includes a Corporate Tax Rate, 2020 corporate tax rates around the world, 2020 corporate tax trends

To be able to calculate average statutory corporate income tax rates weighted by GDP, the dataset includes GDP data for 177 jurisdictions. When used to calculate average statutory corporate income tax rates, either weighted by GDP or unweighted, only these 177 jurisdictions are included (to ensure the comparability of the unweighted and weighted averages).

Definition of Selected Corporate Income Tax Rate

The dataset captures standard top statutory corporate income tax rates levied on domestic businesses. This means:

  • The dataset does not reflect special tax regimes, including but not limited to patent boxes, offshore regimes, or special rates for specific industries.
  • A number of countries levy lower rates for businesses below a certain revenue threshold. The dataset does not capture these lower rates.
  • A few countries levy gross revenue taxes on businesses instead of corporate income taxes. Since the tax rates of a corporate income tax and a gross revenue tax are not comparable, these countries are excluded from the dataset.
  • Some countries have a separate tax rate for nonresident companies. This dataset does not consider nonresident tax rates that differ from the general corporate rate.

Sources

Tax Rates for the Year 2020

For OECD countries, the statutory corporate income tax rates used are the combined corporate income tax rates provided by the OECD; see OECD, “Table II.1. Statutory corporate income tax rate,” updated April 2020, https://stats.oecd.org/index.aspx?DataSetCode=Table_II1. The main source for non-OECD jurisdictions are the statutory rates provided by KPMG; see KPMG, “Corporate tax rates table,” 2020, https://home.kpmg/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/corporate-tax-rates-table.html. Jurisdictions that are not part of either source were researched individually. The source for each of these jurisdictions is listed in a GitHub repository; see Tax Foundation, “worldwide-corporate-tax-rates,” GitHub, https://github.com/TaxFoundation/worldwide-corporate-tax-rates.

Tax Rates for the Years 1980-2019

Tax rates for the time frame between 1980 and 2019 are taken from a dataset compiled by the Tax Foundation over the last years. These historic rates come from multiple sources: PwC, “Worldwide Tax Summaries – Corporate Taxes,” 2010-2019; KPMG, “Corporate Tax Rate Survey,” 1998- 2003; KPMG, “Corporate tax rates table,” 2003-2019; EY, “Worldwide Corporate Tax Guide,” 2004-2019; OECD, “Historical Table II.1 – Statutory corporate income tax rate,” 1999, http://www.oecd.org/tax/tax-policy/tax-database.htm#C_CorporateCaptial; the University of Michigan – Ross School of Business, “World Tax Database,” https://www.bus.umich.edu/otpr/otpr/default.asp; and numerous government websites.

Gross Domestic Product (GDP) for the years 1980-2020

GDP calculations are from the U.S. Department of Agriculture, “International Macroeconomics Data Set,” Jan. 3, 2020, https://www.ers.usda.gov/data-products/international-macroeconomic-data-set/.

List of all Corporate Tax Rates in 2020

Statutory Top Corporate Tax Rates around the World, 2020
ISO3 Country Continent Corporate Tax Rate
AFG Afghanistan AS 20.00%
ALA Aland Islands EU 20.00%
ALB Albania EU 15.00%
DZA Algeria AF 26.00%
ASM American Samoa OC 34.00%
AND Andorra EU 10.00%
AGO Angola AF 30.00%
AIA Anguilla NO 0.00%
ATG Antigua and Barbuda NO 25.00%
ARG Argentina SA 30.00%
ARM Armenia AS 18.00%
ABW Aruba NO 25.00%
AUS Australia OC 30.00%
AUT Austria EU 25.00%
AZE Azerbaijan AS 20.00%
BHS Bahamas NO 0.00%
BHR Bahrain AS 0.00%
BGD Bangladesh AS 25.00%
BRB Barbados NO 5.50%
BLR Belarus EU 18.00%
BEL Belgium EU 25.00%
BEN Benin AF 30.00%
BMU Bermuda NO 0.00%
BTN Bhutan AS 30.00%
BOL Bolivia (Plurinational State of) SA 25.00%
BES Bonaire, Sint Eustatius and Saba NO 25.00%
BIH Bosnia and Herzegovina EU 10.00%
BWA Botswana AF 22.00%
BRA Brazil SA 34.00%
VGB British Virgin Islands NO 0.00%
BRN Brunei Darussalam AS 18.50%
BGR Bulgaria EU 10.00%
BFA Burkina Faso AF 28.00%
BDI Burundi AF 30.00%
CPV Cabo Verde AF 22.00%
KHM Cambodia AS 20.00%
CMR Cameroon AF 33.00%
CAN Canada NO 26.47%
CYM Cayman Islands NO 0.00%
CAF Central African Republic AF 30.00%
TCD Chad AF 35.00%
CHL Chile SA 25.00%
CHN China AS 25.00%
HKG China, Hong Kong Special Administrative Region AS 16.50%
MAC China, Macao Special Administrative Region AS 12.00%
COL Colombia SA 32.00%
COM Comoros AF 50.00%
COG Congo AF 30.00%
COK Cook Islands OC 20.00%
CRI Costa Rica NO 30.00%
CIV Cote d’Ivoire AF 25.00%
HRV Croatia EU 18.00%
CUW Curacao NO 22.00%
CYP Cyprus EU 12.50%
CZE Czechia EU 19.00%
COD Democratic Republic of the Congo AF 35.00%
DNK Denmark EU 22.00%
DJI Djibouti AF 25.00%
DMA Dominica NO 25.00%
DOM Dominican Republic NO 27.00%
ECU Ecuador SA 25.00%
EGY Egypt AF 22.50%
SLV El Salvador NO 30.00%
GNQ Equatorial Guinea AF 35.00%
ERI Eritrea AF 30.00%
EST Estonia EU 20.00%
ETH Ethiopia AF 30.00%
FLK Falkland Islands (Malvinas) SA 26.00%
FRO Faroe Islands EU 18.00%
FJI Fiji OC 20.00%
FIN Finland EU 20.00%
FRA France EU 32.02%
PYF French Polynesia OC 25.00%
GAB Gabon AF 30.00%
GMB Gambia AF 31.00%
GEO Georgia AS 15.00%
DEU Germany EU 29.90%
GHA Ghana AF 25.00%
GIB Gibraltar EU 10.00%
GRC Greece EU 24.00%
GRL Greenland NO 26.50%
GRD Grenada NO 28.00%
GUM Guam OC 21.00%
GTM Guatemala NO 25.00%
GGY Guernsey EU 0.00%
GIN Guinea AF 35.00%
GNB Guinea-Bissau AF 25.00%
GUY Guyana SA 25.00%
HTI Haiti NO 30.00%
HND Honduras NO 25.00%
HUN Hungary EU 9.00%
ISL Iceland EU 20.00%
IND India AS 30.00%
IDN Indonesia AS 25.00%
IRN Iran (Islamic Republic of) AS 25.00%
IRQ Iraq AS 15.00%
IRL Ireland EU 12.50%
IMN Isle of Man EU 0.00%
ISR Israel AS 23.00%
ITA Italy EU 27.81%
JAM Jamaica NO 25.00%
JPN Japan AS 29.74%
JEY Jersey EU 0.00%
JOR Jordan AS 20.00%
KAZ Kazakhstan AS 20.00%
KEN Kenya AF 30.00%
KIR Kiribati OC 35.00%
XKX Kosovo, Republic of EU 10.00%
KWT Kuwait AS 15.00%
KGZ Kyrgyzstan AS 10.00%
LAO Lao People’s Democratic Republic AS 24.00%
LVA Latvia EU 20.00%
LBN Lebanon AS 17.00%
LSO Lesotho AF 25.00%
LBR Liberia AF 25.00%
LBY Libya AF 20.00%
LIE Liechtenstein EU 12.50%
LTU Lithuania EU 15.00%
LUX Luxembourg EU 24.94%
MDG Madagascar AF 20.00%
MWI Malawi AF 30.00%
MYS Malaysia AS 24.00%
MDV Maldives AS 15.00%
MLI Mali AF 30.00%
MLT Malta EU 35.00%
MRT Mauritania AF 25.00%
MUS Mauritius AF 15.00%
MEX Mexico NO 30.00%
FSM Micronesia (Federated States of) OC 30.00%
MCO Monaco EU 28.00%
MNG Mongolia AS 25.00%
MNE Montenegro EU 9.00%
MSR Montserrat NO 30.00%
MAR Morocco AF 31.00%
MOZ Mozambique AF 32.00%
MMR Myanmar AS 25.00%
NAM Namibia AF 32.00%
NRU Nauru OC 25.00%
NPL Nepal AS 25.00%
NLD Netherlands EU 25.00%
NCL New Caledonia OC 30.00%
NZL New Zealand OC 28.00%
NIC Nicaragua NO 30.00%
NER Niger AF 30.00%
NGA Nigeria AF 30.00%
NIU Niue OC 30.00%
MNP Northern Mariana Islands OC 21.00%
NOR Norway EU 22.00%
OMN Oman AS 15.00%
PAK Pakistan AS 29.00%
PAN Panama NO 25.00%
PNG Papua New Guinea OC 30.00%
PRY Paraguay SA 10.00%
PER Peru SA 29.50%
PHL Philippines AS 30.00%
POL Poland EU 19.00%
PRT Portugal EU 31.50%
PRI Puerto Rico NO 37.50%
QAT Qatar AS 10.00%
KOR Republic of Korea AS 27.50%
MDA Republic of Moldova EU 12.00%
ROU Romania EU 16.00%
RUS Russian Federation EU 20.00%
RWA Rwanda AF 30.00%
BLM Saint Barthelemy NO 0.00%
SHN Saint Helena AF 25.00%
KNA Saint Kitts and Nevis NO 33.00%
LCA Saint Lucia NO 30.00%
MAF Saint Martin (French Part) NO 35.00%
VCT Saint Vincent and the Grenadines NO 30.00%
WSM Samoa OC 27.00%
SMR San Marino EU 17.00%
STP Sao Tome and Principe AF 25.00%
SAU Saudi Arabia AS 20.00%
SEN Senegal AF 30.00%
SRB Serbia EU 15.00%
SYC Seychelles AF 33.00%
SLE Sierra Leone AF 30.00%
SGP Singapore AS 17.00%
SXM Sint Maarten (Dutch part) NO 35.00%
SVK Slovakia EU 21.00%
SVN Slovenia EU 19.00%
SLB Solomon Islands OC 30.00%
ZAF South Africa AF 28.00%
SSD South Sudan AF 25.00%
ESP Spain EU 25.00%
LKA Sri Lanka AS 28.00%
PSE State of Palestine AS 15.00%
SDN Sudan AF 35.00%
SUR Suriname SA 36.00%
SWZ Swaziland AF 27.50%
SWE Sweden EU 21.40%
CHE Switzerland EU 21.15%
SYR Syrian Arab Republic AS 28.00%
TWN Taiwan AS 20.00%
TJK Tajikistan AS 23.00%
THA Thailand AS 20.00%
MKD The former Yugoslav Republic of Macedonia EU 10.00%
TLS Timor-Leste OC 10.00%
TGO Togo AF 27.00%
TKL Tokelau OC 0.00%
TON Tonga OC 25.00%
TTO Trinidad and Tobago NO 30.00%
TUN Tunisia AF 25.00%
TUR Turkey AS 22.00%
TKM Turkmenistan AS 8.00%
TCA Turks and Caicos Islands NO 0.00%
UGA Uganda AF 30.00%
UKR Ukraine EU 18.00%
ARE United Arab Emirates AS 0.00%
GBR United Kingdom of Great Britain and Northern Ireland EU 19.00%
TZA United Republic of Tanzania AF 30.00%
USA United States of America NO 25.77%
VIR United States Virgin Islands NO 23.10%
URY Uruguay SA 25.00%
UZB Uzbekistan AS 7.50%
VUT Vanuatu OC 0.00%
VEN Venezuela (Bolivarian Republic of) SA 34.00%
VNM Viet Nam AS 20.00%
WLF Wallis and Futuna Islands OC 0.00%
YEM Yemen AS 20.00%
ZMB Zambia AF 35.00%
ZWE Zimbabwe AF 24.72%

Notes: Continent abbreviations are as follows: “AF” is Africa, “AS” is Asia, “EU” is Europe, “OC” is Oceania, “NO” is North America, and “SA” is South America. Countries are assigned to continents based on ISO standards; see DataHub.io, “Comprehensive country codes: ISO 3166, ITU, ISO 4217 currency codes and many more,” https://datahub.io/core/country-codes#resource-country-codes_zip.

Sources: Statutory corporate income tax rates are from OECD, “Table II.1. Statutory corporate income tax rate;” KPMG, “Corporate tax rates table;” and researched individually, see Tax Foundation, “worldwide-corporate-tax-rates.”


[1]
Unless otherwise noted, calculated averages of statutory corporate income tax rates only include jurisdictions for which GDP data is available for all years between 1980 and 2020. For 2020, the dataset includes statutory corporate income tax rates of 223 jurisdictions, but GDP data is available for only 177 of these jurisdictions, reducing the number of jurisdictions included in calculated averages to 177. For years prior to 2020, the number of countries included in calculated averages varies by year due to missing corporate tax rates; that is, the 1980 average includes statutory corporate income tax rates of 74 jurisdictions, compared to 177 jurisdictions in 2020.

[2] Statutory corporate income tax rates are from OECD, “Table II.1. Statutory corporate income tax rate,” updated April 2020, https://stats.oecd.org/index.aspx?DataSetCode=Table_II1; KPMG, “Corporate tax rates table,” https://home.kpmg/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/corporate-tax-rates-table.html; and researched individually, see Tax Foundation, “worldwide-corporate-tax-rates,” GitHub, https://github.com/TaxFoundation/worldwide-corporate-tax-rates. GDP calculations are from the U.S. Department of Agriculture, “International Macroeconomics Data Set,” Jan. 3, 2020, https://www.ers.usda.gov/data-products/international-macroeconomic-data-set/.

[3] Kari Jahnsen and Kyle Pomerleau, “Corporate Income Tax Rates around the World, 2017,” Tax Foundation, Sept. 7, 2017, https://taxfoundation.org/corporate-income-tax-rates-around-the-world-2017/.

[4] See OECD, “Tax Policy Reforms 2020,” Sept. 3, 2020, https://www.oecd.org/tax/tax-policy-reforms-26173433.htm. This section is limited to OECD countries as no comprehensive source for scheduled corporate rate changes was available for non-OECD countries.

[5] As no averages are presented in this section, it covers all 223 jurisdictions for which 2020 corporate income tax rates were found (thus including jurisdictions for which GDP data was not available).

[6] This average is lower than the average of the 177 jurisdictions because many of the jurisdictions for which no GDP data is available are small economies with low corporate income tax rates.

[7] Industrialized nations are those that are members of the OECD.

[8] Ibid.

[9] BRICS is a group of countries with major emerging economies. The members of this group are Brazil, Russia, India, China, and South Africa.

[10] As no averages are presented in this chapter, it covers all 223 jurisdictions for which 2020 corporate income tax rates were found (thus including jurisdictions for which GDP data was not available).

[11] Historical data comes from multiple sources: PwC, “Worldwide Tax Summaries – Corporate Taxes,” 2010-2019; KPMG, “Corporate Tax Rate Survey,” 1998- 2003; KPMG, “Corporate tax rates table,” 2003-2019; EY, “Worldwide Corporate Tax Guide,” 2004-2019; OECD, “Historical Table II.1 – Statutory corporate income tax rate,” 1999, http://www.oecd.org/tax/tax-policy/tax-database.htm#C_CorporateCaptial; the University of Michigan – Ross School of Business, “World Tax Database,” https://www.bus.umich.edu/otpr/otpr/default.asp; and numerous government websites.

[12] This section of the report covers all 223 jurisdictions for which 2020 corporate income tax rates were found (thus including jurisdictions for which GDP data was not available).

[13] The jurisdictions Netherland Antilles (which was split into different jurisdictions in 2010) and Kosovo (which has not yet officially been assigned a country code) were added to the dataset.

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A corporate income tax (CIT) is levied by federal and state governments on business profits. Many companies are not subject to the CIT because they are taxed as pass-through businesses, with income reportable under the individual income tax.