Global Tax Policy and Controversy

Tax Rates

  • Share

Corporate income tax (effective rate paid)

Jurisdiction
2017
2018
Notes
% of change in 2018
Indicator
Argentina
35.0%
30.0%
Corporate income tax rate decreases from 35% to 30% for fiscal years starting 1 January 2018 to 31 December 2019, and to 25% for fiscal years starting 1 January 2020 and onwards.
-14.3%
Decrease
Australia
30.0%
30.0%
 
0.0%
No change
Brazil
34.0%
34.0%
 
0.0%
No change
Canada
28.07%
37.87%
Simple average combined federal rate (15%) and provincial / territorial rate (varies) on general income. By province / territory, combined rates range from 26.5% to 31%.
-0.71%
Decrease
China
25.0%
25.0%
 
0.0%
No change
France
33.3%
33.3%
 
0.0%
No change
Germany
30.0%
30.0%
 
0.0%
No change
India
43.3%
43.3%
Domestic company income tax rate is 30% and will gradually be reduced to 25% over the next three years. Rate shown to left is for foreign companies, and is inclusive of surcharge and education cess.
0.0%
No change
Indonesia
25.0%
25.0%
 
0.0%
No change
Italy
24.0%
24.0%
 
0.0%
No change
Japan
29.97%
29.74%
29.74% is the effective tax rate when federal and local (Tokyo) taxes are taken into account.
0.0%
-0.77%
Mexico
30.0%
30.0%
 
0.0%
No change
Russia
20.0%
20.0%
 
0.0%
No change
Saudi Arabia
20.0%
20.0%
 
0.0%
No change
South Africa
28.0%
28.0%
 
0.0%
No change
South Korea
22.0%
25.0%
New tax bracket for income over KRW 300 billion
0.0%
Increase
Turkey
20.0%
22.0%
22.0% for 2018, 2019 and 2020, effective 5 December 2017.
10.0%
Increase
United Kingdom
19.0%
19.0%
 
0.0%
No change
United States
39.0%
26.0%
Assumes average state taxes of 5%. Taxable years beginning after 2017 and before 2026
0.0%
No change
 
 

Personal income tax (highest marginal rate)

Jurisdiction
2017
2018
% of change in 2018
Indicator
Argentina
35.0%
35.0%
0.0%
No change
Australia
47.0%
45.0%
-4.3%
Decrease
Brazil
27.5%
27.5%
0.0%
No change
Canada
54.0%
54.0%
0.0%
No change
China
45.0%
45.0%
0.0%
No change
France
45.0%
45.0%
0.0%
No change
Germany
45.0%
45.0%
0.0%
No change
India
30.0%
30.0%
0.0%
No change
Indonesia
30.0%
30.0%
0.0%
No change
Italy
43.0%
43.0%
0.0%
No change
Japan
45.0%
45.0%
0.0%
No change
Mexico
35.0%
35.0%
0.0%
No change
Russia
35.0%
35.0%
0.0%
No change
Saudi Arabia
20.0%
20.0%
0.0%
No change
South Africa
41.0%
41.0%
0.0%
No change
South Korea
38.0%
38.0%
0.0%
No change
Turkey
35.0%
35.0%
0.0%
No change
United Kingdom
45.0%
45.0%
0.0%
No change
United States
39.6%
37.0%
-6.6%
Decrease
 

VAT/GST/sales tax

Jurisdiction
2017
2018
% of change in 2018
Indicator
Argentina
21.0%
21.0%
0.0%
No change
Australia
10.0%
10.0%
0.0%
 
Brazil
18.0%
18.0%
0.0%
No change
Canada
5.0%
5.0%
0.0%
No change
China
17.0%
17.0%
0.0%
No change
France
20.0%
20.0%
0.0%
No change
Germany
19.0%
19.0%
0.0%
No change
India
12.5%
No change
0.0%
 
Indonesia
10.0%
10.0%
0.0%
No change
Italy
22.0%
22.0%
0.0%
No change
Japan
8.0%
8.0%
0.0%
No change
Mexico
16.0%
16.0%
0.0%
No change
Russia
18.0%
18.0%
0.0%
No change
Saudi Arabia
N/A
5%
N/A
Increase (new tax)
South Africa
14.0%
14.0%
0.0%
No change
South Korea
10.0%
10.0%
0.0%
No change
Turkey
18.0%
18.0%
0.0%
No change
United Kingdom
20.0%
20.0%
0.0%
No change
United States