Effective Corporate Tax Rate by Country 2025
Tax Rate Floor
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
5 Countries with the Highest Effective Corporate Tax Rate
Country | Tax Rate Floor↓ | Tax Rate Ceiling (if different) | Details | |
|---|---|---|---|---|
 | Bahrain | 46% | 46% for oil corps; 0% for other corps | |
 | Puerto Rico | 37.5% | 18.5% + 19% surtax on income over USD 275,000 | |
 | Colombia | 35% | ||
 | Argentina | 35% | ||
 | Chad | 35% | ||
 | Equatorial Guinea | 35% | ||
 | Malta | 35% | ||
 | Brazil | 34% | Composed of IRPJ at the rate of 25% and CSLL at the rate of 9% | |
 | Venezuela | 34% | ||
 | Cameroon | 33% | ||
 | Morocco | 32% | For FY23, the CIT rate applicable to companies with a net taxable income higher than MAD 100 million is 32% | |
 | Namibia | 32% | ||
 | Ethiopia | 30% | ||
 | Mexico | 30% | ||
 | DR Congo | 30% | ||
 | Tanzania | 30% | ||
 | Kenya | 30% | Resident corp: 30; | Foreign corp: 30 | |
 | Uganda | 30% | ||
 | Peru | 30% | ||
 | Sri Lanka | 30% | ||
 | Malawi | 30% | ||
 | Zambia | 30% | 35% in 2021 charge year | |
 | Senegal | 30% | ||
 | Rwanda | 30% | ||
 | Papua New Guinea | 30% | 48% | Resident: 30; | Non-resident: 48 |
 | Nicaragua | 30% | ||
 | El Salvador | 30% | ||
 | Costa Rica | 30% | ||
 | Gabon | 30% | 35% for oil & gas and mining companies | |
 | Trinidad and Tobago | 30% | 35% for commercial banks and petrochemical companies | |
 | Saint Lucia | 30% | ||
 | Pakistan | 29% | ||
 | Republic of the Congo | 28% | ||
 | New Zealand | 28% | ||
 | Eswatini | 28% | ||
 | South Africa | 27% | ||
 | Dominican Republic | 27% | ||
 | Greenland | 26.5% | 25% + 6% surcharge | |
 | Netherlands | 26% | ||
 | China | 25% | ||
 | Philippines | 25% | ||
 | Turkey | 25% | 30% for financial sector companies | |
 | France | 25% | ||
 | Spain | 25% | ||
 | Angola | 25% | ||
 | Ghana | 25% | ||
 | Ivory Coast | 25% | ||
 | Australia | 25% | 30% | 25% for 'small-medium business' entities |
 | Chile | 25% | 27% | |
 | Guatemala | 25% | System on earnings: 25% on net income; | Simplified optional system: 7% on gross income | |
 | Bolivia | 25% | 0% | 25% except for mining, financial institutions, and insurance/reinsurance companies, which have an additional income tax rate |
 | Belgium | 25% | ||
 | Honduras | 25% | 30% | 25% plus a surcharge of 5% on net taxable income over 1 million HNL (Honduran Lempira) |
 | Mauritania | 25% | ||
 | Panama | 25% | ||
 | Mongolia | 25% | ||
 | Uruguay | 25% | ||
 | Jamaica | 25% | 33% | Regulated company: 33⅓; | Building society: 30; | Life assurance company: 25; | Unregulated company: 25 |
 | Guyana | 25% | ||
 | Luxembourg | 24.94% | 24.94% on a combined basis (CIT, solidarity surtax, and municipal business tax [Luxembourg City]) | |
 | Zimbabwe | 24.72% | ||
 | Italy | 24% | ||
 | South Korea | 24% | ||
 | Malaysia | 24% | ||
 | Austria | 24% | ||
 | Libya | 24% | 20% + 4% Jehad Tax | |
 | Japan | 23.2% | ||
 | Egypt | 23% | ||
 | Israel | 23% | ||
 | Indonesia | 22% | ||
 | Myanmar | 22% | ||
 | Ecuador | 22% | 28% | Depending on the company's shareholders structure (corporate structure) and disclosure compliance. |
 | Greece | 22% | ||
 | Denmark | 22% | ||
 | Norway | 22% | 25% for certain companies within the financial sector | |
 | Botswana | 22% | ||
 | Cape Verde | 22% | 22% + 2% surcharge | |
 | United States | 21% | Federal CIT: 21%. | State CITs range from 1% to 12% (although some states impose no CIT) and are deductible expenses for federal CIT purposes. | |
 | Portugal | 21% | ||
 | Slovakia | 21% | ||
 | Sweden | 20.6% | ||
 | Vietnam | 20% | ||
 | Thailand | 20% | ||
 | Saudi Arabia | 20% | ||
 | Madagascar | 20% | ||
 | Taiwan | 20% | ||
 | Kazakhstan | 20% | ||
 | Cambodia | 20% | ||
 | Jordan | 20% | 35% | Banks: 35; Telecommunication, insurance corps, financial intermediary: 24; Other corps: 20 |
 | Azerbaijan | 20% | ||
 | Laos | 20% | ||
 | Finland | 20% | ||
 | Latvia | 20% | Payable only when profits are distributed | |
 | Estonia | 20% | Undistributed profits are tax exempt | |
 | Fiji | 20% | ||
 | Iceland | 20% | ||
 | United Kingdom | 19% | 25% | 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). |
 | Algeria | 19% | 26% | 19% for manufacturing activities; | 23% for building activities, public works, and hydraulics, as well as tourist and thermal activities, excluding travel agencies; | 26% for all other activities. |
 | Poland | 19% | ||
 | Czech Republic | 19% | ||
 | Slovenia | 19% | ||
 | Ukraine | 18% | ||
 | Tajikistan | 18% | 13% for entities producing goods, | 20% for financial institutions and mobile companies | |
 | Croatia | 18% | 10% for companies with less than EUR 995,421.06 in revenues | |
 | Armenia | 18% | ||
 | Singapore | 17% | ||
 | Lebanon | 17% | ||
 | Romania | 16% | ||
 | Germany | 15.82% | Corporate income tax/solidarity surcharge: 15.825%; | Trade tax: From 8.75% to 20.3%, depending upon the location of the business establishment. | |
 | India | 15% | 30% | Domestic companies: | 1. 25% or 30% (plus applicable surcharge and cess) depending on turnover. | 2. 15% or 22% (plus applicable surcharge and cess) subject to certain conditions. |
 | Iraq | 15% | 35 for certain companies in the oil and gas sector | |
 | Canada | 15% | Federal CIT: 15%. | Provincial and territorial CITs range from 8% to 16% and are not deductible for federal CIT purposes. | |
 | Uzbekistan | 15% | ||
 | Tunisia | 15% | ||
 | Hong Kong | 15% | 16.5% | Corporations: 16.5; | Unincorporated businesses: 15 |
 | Serbia | 15% | ||
 | Palestine | 15% | 20% for telecommunication companies and other companies that operate under a franchise or a monopoly in the Palestinian market | |
 | Oman | 15% | ||
 | Kuwait | 15% | ||
 | Georgia | 15% | 20% for banks, credit unions, microfinance organisations, and loan providers | |
 | Lithuania | 15% | ||
 | Albania | 15% | ||
 | Montenegro | 15% | ||
 | Maldives | 15% | ||
 | Cyprus | 13% | ||
 | Ireland | 12.5% | 25% | Trading corp: 12.5 | Non-trading corp: 25 |
 | Liechtenstein | 12.5% | ||
 | Gibraltar | 12.5% | 12.5% from 01 August 2021 (10% up to 31 July 2021). | Utility and energy providers and corps abusing a dominant position pay 20% | |
 | Moldova | 12% | ||
 | Macau | 12% | ||
 | Mozambique | 10% | 32% | 32% for most, but a reduced rate of 10% is applicable to agricultural, livestock, aquaculture, and urban transportation activities |
 | Kyrgyzstan | 10% | ||
 | Paraguay | 10% | ||
 | Bulgaria | 10% | ||
 | Bosnia and Herzegovina | 10% | ||
 | Qatar | 10% | 35% | 10% except for petrochemical/petroleum companies/operations, for which a minimum rate of 35% applies |
 | North Macedonia | 10% | ||
 | Timor-Leste | 10% | ||
 | United Arab Emirates | 9% | ||
 | Hungary | 9% | ||
 | Switzerland | 8.5% | 21% | 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. |
 | Turkmenistan | 8% | 20% | Domestic corp.: 8; | Foreign corp.: 20 |
 | Mauritius | 3% | 15% | 3% for companies exporting goods |
 | Barbados | 1% | 5.5% | |
 | Nigeria | 30% | 30% for large companies; | 20% for medium companies; | 0% for small companies | |
 | Isle of Man | 20% | Corporate: 0; | Banks: 10; | Income from real estate: 20 |
- Data shown are the Headline Corporate Income Tax (CIT) rates for each country.
The effective corporate tax rate is defined as the average rate that corporations are taxed on their profits by the government. Tax rates vary based on the corporate laws of each nation. To get an idea of the effective corporate tax rates around the world, we can look at data compiled by the Organisation for Economic Co-operation and Development, or OECD. Based on data from 2017, the highest composite effective average tax rate was found in India. This nation’s rate was 44.1%. Coming in behind India was Costa Rica with a tax rate of 37.9%. In third place was Argentina with a tax rate of 35.7%.
The nations with the highest effective corporate tax rates are India, Costa Rica, Argentina, United States, Malta, France, Chile, Democratic Republic of the Congo, Australia, Montserrat, Brazil, Seychelles, Peru, Greece, Senegal, Portugal, Japan, Mexico, Botswana, Germany, South Africa, Kenya, New Zealand, Papua New Guinea, and Belgium.
If we look at the other side of the coin, there are several nations with a low corporate tax rate. Nations without a corporate tax rate include British Virgin Islands, Cayman Islands, Guernsey, Isle of Man, Jersey, Saudi Arabia, and Turks and Caicos. There are other nations that do have a corporate tax rate but they are the lowest when compared to other nations. These countries include: Andorra, Bulgaria, Hungary, Liechtenstein, Macau, Ireland, Cyprus, Lithuania, Latvia, Mauritius, Romania, Albania, Hong Kong, Croatia, Singapore, Estonia,Poland, Slovenia, Russia, Iceland, Finland, United Kingdom, Denmark, Switzerland, and Sweden.
