In every corner of our globe, companies grapple with the complexities of corporate tax - a key economic lever that impacts both businesses and national economies. Established by jurisdictions worldwide, corporate tax refers to a tax imposed on the profits of corporations and businesses. With no global standard to govern these rates, they are determined by the local, federal, or national governments of each country, leading to stark variations in corporate tax rates globally. In 2021, 20 nations modified their statutory corporate income taxes, yielding a fascinating insight into global trends and regional nuances in business taxation.
Key Findings:
When it comes to maximum corporate tax rates globally, the African nation of Comoros takes the lead, imposing a staggering rate of 50% on its corporations' profits. Hot on the heels of Comoros, we find Puerto Rico, a territory of the United States with a corporate tax rate of 37%. The South American nation of Suriname comes in third, with a notable corporate tax rate of 36%.
Further along the spectrum, the following seven nations reflect similar tax burdens, all imposing a corporate tax rate of 35%: Sudan, Argentina, Zambia, Chad, Guinea, Cuba, and Equatorial Guinea.
Here are the ten countries with the highest corporate taxes:
Barbados leads the pack with the lowest corporate tax rate of 5%. The country aims to attract businesses with its favorable taxation policy and serve as a regional hub for finance and corporate services. Following Barbados, is the Central Asian country of Uzbekistan, with a corporate tax rate slightly higher at 7%.
Close behind, with an 8% corporate tax rate, Turkmenistan. Both Montenegro and Hungary have a corporate tax rate of 9% and focus on boosting domestic businesses and attracting foreign investment with their tax-friendly regimes.
Further, Andorra, Timor Leste, North Macedonia, and Qatar have set their corporate tax rates at 10%. Finally, Bosnia and Herzegovina also maintains a corporate tax rate of 10%.
Countries with the Lowest Corporate Tax: