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Corporate Income Tax Rates in Europe, 2022

2 min readBy: Sean Bray

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European countries—like almost all countries around the world—require businesses to pay corporate income taxes on their profits. The amount of taxes a business ultimately pays on its profits depends on both the corporate tax baseThe tax base is the total amount of income, property, assets, consumption, transactions, or other economic activity subject to taxation by a tax authority. A narrow tax base is non-neutral and inefficient. A broad tax base reduces tax administration costs and allows more revenue to be raised at lower rates. and the corporate taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. rate. Today’s map shows how statutory corporate income tax rates compare across European OECD countries.

2022 Corporate Tax Rates in Europe and 2022 Corporate Income Tax Rates in Europe Corporate Tax Rates Europe

Taking into account central and subcentral taxes, Portugal has the highest statutory corporate income taxA 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. rate among European OECD countries, at 31.5 percent. Germany and France follow, at 29.9 percent and 28.4 percent, respectively. Hungary (9 percent), Ireland (12.5 percent), and Lithuania (15 percent) have the lowest corporate income tax rates.

On average, European OECD countries currently levy a corporate income tax rate of 21.7 percent. This is below the worldwide average which, measured across 180 jurisdictions, was 23.54 percent in 2021.

EU countries—like most regions around the world—have experienced a decline in corporate income tax rates over the last decades. In 2000, the average corporate tax rate was 32.6 percent and has decreased consistently to its current level of 21.3 percent.

2022 Corporate Tax Rates in Europe
Combined Statutory Corporate Income Tax Rates in European OECD Countries, 2022
European OECD Country Combined Statutory Corporate Income Tax Rate
Austria 25.0%
Belgium 25.0%
Czech Republic 19.0%
Denmark 22.0%
Estonia 20.0%
Finland 20.0%
France 28.4%
Germany 29.9%
Greece 24.0%
Hungary 9.0%
Iceland 20.0%
Ireland 12.5%
Italy 27.8%
Latvia 20.0%
Lithuania 15.0%
Luxembourg 24.9%
Netherlands 25.0%
Norway 22.0%
Poland 19.0%
Portugal 31.5%
Slovak Republic 21.0%
Slovenia 19.0%
Spain 25.0%
Sweden 20.6%
Switzerland 19.7%
Turkey 20.0%
United Kingdom 19.0%

Note: Combined statutory corporate income tax rates include both central and subcentral corporate income tax rates.

Source: OECD, “Tax Database: Table II.1. Statutory corporate income tax rate;” and Bloomberg Tax, “Country Guide.”

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