Corporate Tax Rates
Corporate tax rates generally are the same for differing types of income. However, many systems have graduated tax rate systems under which corporations with lower levels of income pay a lower rate of tax. Some systems impose tax at different rates for different types of corporations. Tax rates vary by jurisdiction. In addition, some countries have sub-country level jurisdictions that also impose corporate income tax. Some jurisdictions also impose tax at a different rate on an alternative tax base (see below). Note that some entities may be eligible for tax exemption on part or all of their income in some jurisdictions.
| Country | Tax/GDP | Country | Tax/GDP |
|---|---|---|---|
| Norway | 12.5 | Switzerland | 3.3 |
| Australia | 5.9 | Netherlands | 3.2 |
| Luxembourg | 5.1 | Slovak Rep. | 3.1 |
| New Zealand | 4.4 | Sweden | 3.0 |
| Czech Rep. | 4.2 | France | 2.9 |
| South Korea | 4.2 | Ireland | 2.8 |
| Japan | 3.9 | Spain | 2.8 |
| Italy | 3.7 | Poland | 2.7 |
| Portugal | 3.6 | Hungary | 2.6 |
| Britain | 3.6 | Austria | 2.5 |
| Finland | 3.5 | Greece | 2.5 |
| Israel | 3.5 | Slovenia | 2.5 |
| OECD avg. | 3.5 | Germany | 1.9 |
| Denmark | 3.4 | Iceland | 1.9 |
| Belgium | 3.3 | Turkey | 1.8 |
| Canada | 3.3 | US | 1.8 |
Examples of corporate tax rates for a few English-speaking countries include:
- Australia: 30%, however some specialized entities are taxed at lower rates.
- Canada: Federal 11% or 15% plus provincial 1% to 16%. Note: the rates are additive.
- Hong Kong: 16.5%
- Ireland: 12.5% on trading (business) income, and 25% on nontrading income.
- New Zealand: 28%
- Singapore: 17% from 2010, however a partial exemption scheme may apply to new companies.
- United Kingdom: 21% to 26% for 2009–2011.
- United States: Federal 15% to 35%. States: 0% to 10%, deductible in computing Federal taxable income. Some cities: up to 9%, deductible in computing Federal taxable income. The Federal Alternative Minimum Tax of 20% is imposed on regular taxable income with adjustments.
See also:
- Corporate tax rates in Canada
- Corporate tax in the United States
- List of Tax rates of Europe
- List of Tax rates around the world
Read more about this topic: Corporation Tax
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