Country rankings

Effective Corporate Tax Rate by Country

Bahrain has the highest Tax Rate Floor (46.0%), followed by Puerto Rico (37.5%) and Colombia (35.0%). Barbados has the lowest (1%).

Economics146 countries · 3 metricsUpdated Dec 21, 2023Original page
1 source
144 of 235 countries
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Tax Rate Floor

Green is better, red is worse (lower is better). Click a place to highlight it.

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Ranking

Best first: the first 15 and last 5 of 144 countries.

Distribution Median and middle halfThe median is the middle value: half of places are above it, half below. The middle half is the range holding the central 50% of places.More in the glossary →

Each dot is one country; the lines mark the median and the middle half.

Median
22.0%
Middle half 16.0% – 27.0%
Average
22.0%
144 countries
Lowest (best)
1%
Barbados
Highest (worst)
46.0%
Bahrain

Data

Click a column to sort, a row to highlight that place on the charts.

146 countries · # = rank by Tax Rate Floor
#
1Barbados1%5.5%—
2Mauritius3%15.0%3% for companies exporting goods
3Turkmenistan8%20.0%Domestic corp.: 8;, Foreign corp.: 20
4Switzerland8.5%21.0%Federal CIT: 8.5% on profit after tax (7.83% on profit before tax)., Cantonal and communal CITs are added to federal CIT, resulting in an overall effective tax rate between 11.9% and 21.0%, depending on the company’s location of corporate residence in Switzerland.
5United Arab Emirates9%——
5Hungary9%——
7Mozambique10.0%32.0%32% for most, but a reduced rate of 10% is applicable to agricultural, livestock, aquaculture, and urban transportation activities
7Kyrgyzstan10.0%——
7Paraguay10.0%——
7Bulgaria10.0%——
7Qatar10.0%35.0%10% except for petrochemical/petroleum companies/operations, for which a minimum rate of 35% applies
7Bosnia and Herzegovina10.0%——
7North Macedonia10.0%——
7Timor-Leste10.0%——
15Moldova12.0%——
15Macau12.0%——
17Ireland12.5%25.0%Trading corp: 12.5, Non-trading corp: 25
17Gibraltar12.5%—12.5% from 01 August 2021 (10% up to 31 July 2021)., Utility and energy providers and corps abusing a dominant position pay 20%
17Liechtenstein12.5%——
20Cyprus13.0%——
21India15.0%30.0%Domestic companies:, 1. 25% or 30% (plus applicable surcharge and cess) depending on turnover.+1
21Iraq15.0%—35 for certain companies in the oil and gas sector
21Canada15.0%—Federal CIT: 15%., Provincial and territorial CITs range from 8% to 16% and are not deductible for federal CIT purposes.
21Uzbekistan15.0%——
21Tunisia15.0%——
21Hong Kong15.0%16.5%Corporations: 16.5;, Unincorporated businesses: 15
21Serbia15.0%——
21Palestine15.0%—20% for telecommunication companies and other companies that operate under a franchise or a monopoly in the Palestinian market
21Oman15.0%——
21Kuwait15.0%——
21Georgia15.0%—20% for banks, credit unions, microfinance organisations, and loan providers
21Lithuania15.0%——
21Albania15.0%——
21Montenegro15.0%——
21Maldives15.0%——
36Germany15.8%—Corporate income tax/solidarity surcharge: 15.825%;, Trade tax: From 8.75% to 20.3%, depending upon the location of the business establishment.
37Romania16.0%——
38Singapore17.0%——
38Lebanon17.0%——
40Ukraine18.0%——
40Tajikistan18.0%—13% for entities producing goods,, 20% for financial institutions and mobile companies
40Croatia18.0%—10% for companies with less than EUR 995,421.06 in revenues
40Armenia18.0%——
44United Kingdom19.0%25.0%25% main rate (from 1 April 2023);, 19% small profits rate of corporation tax for companies whose profits do not exceed GBP 50,000 (from 1 April 2023).
44Algeria19.0%26.0%19% for manufacturing activities;, 23% for building activities, public works, and hydraulics, as well as tourist and thermal activities, excluding travel agencies;+1
44Poland19.0%——
44Czechia19.0%——
44Slovenia19.0%——
49Vietnam20.0%——
49Thailand20.0%——
49Saudi Arabia20.0%——
49Madagascar20.0%——
49Taiwan20.0%——
49Kazakhstan20.0%——
49Cambodia20.0%——
49Jordan20.0%35.0%Banks: 35; Telecommunication, insurance corps, financial intermediary: 24; Other corps: 20
49Azerbaijan20.0%——
49Laos20.0%——
49Finland20.0%——
49Latvia20.0%—Payable only when profits are distributed
49Estonia20.0%—Undistributed profits are tax exempt
49Fiji20.0%——
49Iceland20.0%——
64Sweden20.6%——
65United States21.0%—Federal CIT: 21%., State CITs range from 1% to 12% (although some states impose no CIT) and are deductible expenses for federal CIT purposes.
65Portugal21.0%——
65Slovakia21.0%——
68Indonesia22.0%——
68Myanmar22.0%——
68Ecuador22.0%28.0%Depending on the company's shareholders structure (corporate structure) and disclosure compliance.
68Greece22.0%——
68Denmark22.0%——
68Norway22.0%—25% for certain companies within the financial sector
68Botswana22.0%——
68Cape Verde22.0%—22% + 2% surcharge
76Egypt23.0%——
76Israel23.0%——
78Japan23.2%——
79Italy24.0%——
79South Korea24.0%——
79Malaysia24.0%——
79Austria24.0%——
79Libya24.0%—20% + 4% Jehad Tax
84Zimbabwe24.7%——
85Luxembourg24.9%—24.94% on a combined basis (CIT, solidarity surtax, and municipal business tax [Luxembourg City])
86China25.0%——
86Philippines25.0%——
86Turkey25.0%—30% for financial sector companies
86France25.0%——
86Spain25.0%——
86Angola25.0%——
86Ghana25.0%——
86Ivory Coast25.0%——
86Australia25.0%30.0%25% for 'small-medium business' entities
86Chile25.0%27.0%—
86Guatemala25.0%—System on earnings: 25% on net income;, Simplified optional system: 7% on gross income
86Bolivia25.0%25+25% except for mining, financial institutions, and insurance/reinsurance companies, which have an additional income tax rate
86Belgium25.0%——
86Honduras25.0%30.0%25% plus a surcharge of 5% on net taxable income over 1 million HNL (Honduran Lempira)
86Mauritania25.0%——
86Panama25.0%——
86Mongolia25.0%——
86Uruguay25.0%——
86Jamaica25.0%33.0%Regulated company: 33⅓;, Building society: 30;+2
86Guyana25.0%——
106Netherlands26.0%——
107Greenland26.5%—25% + 6% surcharge
108South Africa27.0%——
108Dominican Republic27.0%——
110Republic of the Congo28.0%——
110New Zealand28.0%——
110Eswatini28.0%——
113Pakistan29.0%——
114Ethiopia30.0%——
114Mexico30.0%——
114DR Congo30.0%——
114Tanzania30.0%——
114Kenya30.0%—Resident corp: 30;, Foreign corp: 30
114Uganda30.0%——
114Peru30.0%——
114Sri Lanka30.0%——
114Malawi30.0%——
114Zambia30.0%—35% in 2021 charge year
114Senegal30.0%——
114Rwanda30.0%——
114Papua New Guinea30.0%48.0%Resident: 30;, Non-resident: 48
114Nicaragua30.0%——
114El Salvador30.0%——
114Costa Rica30.0%——
114Gabon30.0%—35% for oil & gas and mining companies
114Trinidad and Tobago30.0%—35% for commercial banks and petrochemical companies
114Saint Lucia30.0%——
133Morocco32.0%—For FY23, the CIT rate applicable to companies with a net taxable income higher than MAD 100 million is 32%
133Namibia32.0%——
135Cameroon33.0%——
136Brazil34.0%—Composed of IRPJ at the rate of 25% and CSLL at the rate of 9%
136Venezuela34.0%——
138Colombia35.0%——
138Argentina35.0%——
138Chad35.0%——
138Equatorial Guinea35.0%——
138Malta35.0%——
143Puerto Rico37.5%—18.5% + 19% surtax on income over USD 275,000
144Bahrain46.0%—46% for oil corps; 0% for other corps
—Nigeria—30.0%30% for large companies;, 20% for medium companies;+1
—Isle of Man—20.0%Corporate: 0;, Banks: 10;+1

What correlates with Tax Rate Floor?

Pearson r against 1,541 other country metrics sharing at least 87 countries. Ranks are read by standing: a better rank counts as higher, whether rank 1 is the best place on a list or the worst. Correlation is not causation.

Higher together

Places that have a higher Tax Rate Floor tend to score higher on these (or rank better)

  1. Corporate Tax RateCorporate Tax Rates by Country
    r = +0.86 · very strong · n = 140
    Plot
  2. Corporate TaxHighest Taxed Countries
    r = +0.86 · very strong · n = 132
    Plot
  3. Corporate Tax RatesTax-Free Countries
    r = +0.85 · very strong · n = 140
    Plot
  4. O+ Blood TypeBlood Type by Country
    r = +0.45 · moderate · n = 110
    Plot
  5. Gini Coefficient - IncomeGini Coefficient by Country
    r = +0.44 · moderate · n = 131
    Plot
  6. STD Rate FemaleSTD Rates by Country
    r = +0.43 · moderate · n = 137
    Plot

Opposite directions

Places that have a higher Tax Rate Floor tend to score lower on these (or rank worse)

  1. Average Age Upon Birth of First Child (CIA)Average Age of Having First Child by Country
    r = −0.48 · moderate · n = 94
    Plot
  2. SafetySocial Progress Index by Country
    r = −0.47 · moderate · n = 134
    Plot
  3. WJP RoLI Order and Security ScoreWorld Justice Project (WJP) Rule of Law Index
    r = −0.44 · moderate · n = 116
    Plot
  4. LP Safety & SecurityLegatum Prosperity IndexA rank: rank 1 is the best
    r = +0.41 · moderate · n = 133
    Plot
  5. Basic NeedsSocial Progress Index by Country
    r = −0.40 · moderate · n = 134
    Plot
  6. Safety Index Numbeo (100-1)Crime Rate by Country
    r = −0.40 · moderate · n = 123
    Plot

Quick answers

Which country has the highest Tax Rate Floor?
Bahrain has the highest Tax Rate Floor, at 46.0%, followed by Puerto Rico (37.5%) and Colombia (35.0%).
Which country has the lowest Tax Rate Floor?
Barbados has the lowest Tax Rate Floor, at 1%.
What is the median Tax Rate Floor across countries?
The median is 22.0% across the 144 countries with data.
Where does this effective corporate tax rate by country data come from?
Rankodex compiles it from World Population Review and the primary sources it cites: Corporate Tax Statistics Database.