Tax Policy & Controversy Briefing

Gloal corporate tax rates

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

  • Share
Jurisdiction GDP 2012 ($US billions)1 2013 Corporate income tax rate (National statutory rate only) 2013 Corporate income tax rate (National and sub-national, average) Worldwide vs. territorial taxation Notes
United States 15,653 35.00% 39.00% Worldwide  
Japan 5,984   38.01% Territorial Effective for years ending on or after 1 April 2012. Includes recent 4.5 percentage point rate cut and temporary (three-year) corporate income tax surtax of 10%. Effective headline corporate tax rate will decline to 35.64% in 2015.
France 2,580   36.10% Territorial The Finance Bill for 2013 extends the application of the 5% additional contribution to corporate income tax for fiscal years ending on or before 30 December 2015. This surtax applies to companies with annual turnover exceeding EUR250 million.
Argentina 475   35.00% Worldwide  
Pakistan 231   35.00% Worldwide  
Brazil 2,425   34.00% Worldwide  
Venezuela 338   34.00% Worldwide  
Belgium 477   33.99% Territorial  
India 1,947   33.99% Worldwide Foreign companies 43.26%: Small increase from the existing 5% to 10% and 2% to 5% in the surcharge for the tax year 2013-14, imposed on domestic companies and foreign companies respectively having income in excess of INR 100 million (approximately US$1.8 million).
Germany 3,367   33.00% Territorial  
Italy 1,980   31.40% Territorial  
Spain 1,340   30.00% Territorial  
Australia 1,542   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  
Norway 500   28.00% Territorial Corporate tax rate is reduced from 28% to 27% with effect from 1 January 2014
South Africa 391   28.00% Territorial  
Egypt 255   26.50% Worldwide  
Canada 1,770 15.00% 26.23% Territorial  
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 EUR50,000 and at 33% for the portion of income exceeding EUR50,000. New private businesses and entrepreneurs (business start–up as from 1 January 2013) with income up to EUR10,000 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%).
Colombia 365   25.00% Worldwide Reduction of the corporate income tax 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.
China 8,250   25.00% Worldwide  
Netherlands 770   25.00% Territorial Rate for the first 200,000 Euro taxable basis is 20%.
Indonesia 895   25.00% Worldwide  
Islamic Republic of Iran 484   25.00% Worldwide  
Austria 391   25.00% Territorial  
Denmark 309   25.00% Territorial  
Malaysia 307   25.00% Territorial  
Israel 247   25.00% Territorial Increase in the standard corporate income tax rate, from 25% to 26.5% effective 1 January 2014
Portugal 211   25.00% Territorial  
Algeria 207   25.00% Worldwide  
Finland 247   24.50% Territorial The Finnish government recently announced that the statutory CIT rate will be lowered to 20% as of 2014.
Korea 1,151   24.20% Worldwide 24.2% top tax rate includes a 10% surcharge applicable to taxable income in excess of KRW20 billion (USD$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%.
United Kingdom 2,434   23.00% 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.
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.
Sweden 520   22.00% Territorial  
Switzerland 623 7.80% 21.17% Territorial  
Russia 1,954   20.00% Territorial  
Turkey 783   20.00% Territorial  
Saudi Arabia 657   20.00% Worldwide  
Chile 268   20.00% Worldwide  
Poland 470   19.00% Worldwide  
Czech Republic 194   19.00% Territorial  
Taiwan 466   17.00% Worldwide  
Singapore 268   17.00% Territorial  
Hong Kong SAR 258   16.50% Territorial  
Romania 171   16.00% Worldwide  
Ireland 205   12.50% Worldwide  
United Arab Emirates 362   0.00% N/A  

1 IMF World Economic Outlook Database, September 2012