Tax Policy & Controversy Briefing

Corporate income tax (CIT) rates

Largest 50 “economies” or “jurisdictions” by GDP, sorted by tax rate

  • Share
Jurisdiction GDP 2014 ($US billions)1 2014 CIT rate (national statutory rate only) 2014 CIT rate (national and sub-national, average) Worldwide vs. territorial taxation Notes
United States 15,653 35.00% 39.00% Worldwide  
France 2,580   38.00% Territorial

The initially proposed 1% tax on EBITDA (earnings before interest, taxes, depreciation and amortization) is replaced by an increase of the temporary additional contribution to CIT from 5% to 10.7%, that applies to companies (or tax consolidated groups) with an annual turnover exceeding €250 million. The increase would apply to fiscal years (FYs) ending between 31 December 2013 and 30 December 2015. The maximum CIT rate would thus amount to circa 38% instead of the current 36.1%.

Japan 5,984   35.64% Territorial

The government has repealed the 10% special corporate reconstruction surtax a year early. The effective corporate tax rate (Tokyo area, including local taxes) will be reduced from 38.01% to 35.64% for taxable years beginning on or after 1 April 2014.

Argentina 475   35.00% Worldwide  
Pakistan 231   35.00% Worldwide  
Brazil 2,425   34.00% Worldwide  
Venezuela 338   34.00% Worldwide  
India 1,947   33.99% Worldwide

Rate illustrated is applied to domestic companies, including surcharge and education CESS. Foreign companies pay tax of 43.26% including surcharge and education CESS.

Belgium 477   33.99% Territorial  
Germany 3,367   33.00% Territorial  
Italy 1,980   31.40% Territorial  
Australia 1,542   30.00% Territorial  
Spain 1,340   30.00% Territorial  
Mexico 1,163   30.00% Worldwide An additional 10% corporate income tax will be imposed on certain profits and dividends from 2014 onwards. Because the tax on dividends would be on the distributing company, there would be no tax treaty protection.
Nigeria 273   30.00% Worldwide  
Philippines 241   30.00% Worldwide  
South Africa 391   28.00% Territorial  
Dominican Republic     28.00%    
Guatemala     28.00%    
Norway 500   27.00% Territorial

Corporate tax rate is reduced from 28% to 27% with effect from 1 January 2014.

Eqypt 255   26.05% Worldwide  
Israel 247   26.05% Territorial

Increase in the standard CIT rate from 25% to 26.5% effective 1 January 2014.

Canada 1,770 15.00% 26.23% Territorial Rate for the first 200,000 Euro taxable basis is 20%.
           
Greece 255   26.00% Territorial

Income from business activity acquired by entrepreneurs, private businesses and partnerships (OE) or limited partnerships (EE) with single-entry accounting books is subject to taxation at 26% for income up to €50,000 and at 33% for the portion of income exceeding €50,000. New private businesses and entrepreneurs (business start-up as from 1 January 2013) with income up to €10,000 are taxed at 13% for the first three years of operation. Corporate tax rate for corporations (AE), limited liability companies (EPE) and permanent establishments is increased to 26% (previously 20%).

China 8,250   25.00% Worldwide  
Indonesia 895   25.00% Worldwide  
Netherlands 770   25.00% Territorial Rate for the first €200,000 taxable basis is 20%.
Islamic Republic of Iran 484   25.00% Worldwide  
Austria 391   25.00% Territorial Increase in the standard corporate income tax rate, from 25% to 26.5% effective 1 January 2014
Colombia 365   25.00% Worldwide

Reduction of the CIT rate from 33% to 25% except for foreign taxpayers without a branch office or permanent establishment in Colombia. Those taxpayers will continue to be subjected to a 33% tax rate on income and capital gains of Colombian source.

Malaysia 307   25.00% Territorial  
Algeria 207   25.00% Worldwide  
Denmark 309   24.50% Territorial  
Korea 1,151   24.20% Worldwide

24.2% top tax rate includes a 10% surcharge applicable to taxable income in excess of KRW20 billion (US$18 million). While headline tax rates are the same in 2013, large companies with taxable income exceeding KRW100 billion will see the minimum tax rate raised from the current 15.4% to 17.6%.

Thailand 377   23.00% Territorial Thailand recently enacted a two-phased corporate tax rate reduction. Phase one reduction is from 30% to 23% and is effective for accounting periods beginning on or after 1 January 2012. Phase two reduces it down to 20% for accounting periods beginning on or after 1 January 2013 and 1 January 2014.
Portugal 211   23.00% Territorial  
Sweden 520   22.00% Territorial  
Vietnam     22.00%    
Slovak Republic     22.00%    
Switzerland 623 7.80% 21.17% Territorial  
United Kingdom 2,434   21.00% Territorial

Mainstream rate of corporation tax will reduce to 21% in 2014 and be further reduced to 20% with effect from April 2015, the first time that the UK’s main rate and small profits rate have coincided since 1973.

Russia 1,954   20.00% Territorial  
Turkey 783   20.00% Territorial  
Saudi Arabia 657   20.00% Worldwide  
Chile 268   20.00% Worldwide  
Finland 247   20.00% Territorial

The Finnish Government recently announced that the statutory CIT rate will be lowered to 20% as of 2014.

Poland 470   19.00% Worldwide  
Czech Republic 194   19.00% Territorial  
Taiwan 466   17.00% Worldwide  

1 IMF World Economic Outlook Database, September 2012