Corporation Tax Rates Europe 2021
Very few tax jurisdictions levy corporate tax at legal rates of more than 35%. The chart below shows a distribution of corporate tax rates across 225 jurisdictions in 2021. Several countries (115 in total) set rates equal to or greater than 20% and less than 30%. Twenty-two jurisdictions have a legal corporate tax rate equal to or greater than 30% and less than 35%. Only three jurisdictions have a rate of more than 35%. Eighty-five jurisdictions have a legal corporate tax rate of less than 20% and 200 jurisdictions have a corporate tax rate of less than 30%. Notes: * Bahrain does not have a general corporate tax, but a targeted tax on oil companies, which can reach 46%. See Deloitte, “International Tax – Bahrain Highlights 2021,” last updated January 2021, www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-bahrainhighlights-2021.pdf. The United Arab Emirates is a federation of seven different emirates. Since 1960, each emirate has had the discretion to levy up to 55% corporate tax rate on each company. In practice, this tax is mainly levied by foreign banks and oil companies.
For more information on the UAE tax system, see PwC, “Worldwide Tax Summaries – Corporate income tax (CIT) rates.” www.taxsummaries.pwc.com/quick-charts/corporate-income-tax-cit-rates. The following map shows the current state of corporate tax rates around the world. Countries in Africa and South America tend to have higher corporate tax rates than Asian and European jurisdictions. Corporate tax rates in Oceania and North America are generally close to the global average. The tax system of the Republic of Georgia works favorably for individuals and businesses. In particular, income tax is 1% for individuals with an annual income of up to 500,000 Georgian Lari (GEL), or about $145,000, with 0% personal income tax on income from outside Georgia or from the resale of cryptocurrencies. The 15% corporate income tax is payable only after the dividends have been paid to the shareholders and the money has been received in the company`s bank account. Georgian legal persons are not taxed on the profits of foreign subsidiaries unless these subsidiaries are registered in tax havens. There are also income tax exemptions for IT companies that provide services outside Georgia and “free industrial zones” that offer tax exemptions in Georgia.
Banking services in Georgia are also world-class. European OECD countries, like most parts of the world, have seen a decline in corporate tax rates in recent decades. In 2000, the average corporate tax rate was 31.6 per cent and has fallen steadily to the current level of 21.7 per cent. In 2021, 20 countries changed their statutory corporate tax rates. Three countries – Bangladesh, Argentina and Gibraltar – have raised their highest tax rates, while 17 countries – including Chile, Tunisia and France – have lowered their corporate tax rates. To calculate average GDP-weighted statutory corporate tax rates, the dataset contains GDP data for 180 jurisdictions. When calculating average statutory corporate tax rates, whether GDP-weighted or unweighted, only these 180 countries and territories are included (to ensure comparability of unweighted and weighted averages). [11] Similar combinations of national and subnational rates can be included in this dataset.
For example, the combined German corporate tax rate is 29.94%, which includes both the federal rate of 15% and municipal business taxes between 14 and 17%. The dataset compiled for this publication includes the 2021 statutory corporate tax rates of 225 sovereign states and dependent territories around the world. Tax rates have been studied only for jurisdictions belonging to the approximately 250 sovereign states and dependent territories to which a country code has been assigned by the International Organization for Standardization (ISO). Therefore, areas or territories that are independent tax jurisdictions but do not have their own country code are generally not included in the dataset. The highest tax rate in Liechtenstein is 8% for people earning more than CHF 200,000 ($219,000). However, there are local communities in Liechtenstein that levy an additional tax on the national tax, which increases the effective tax rates in the different national classes from 2.5% at the lower end to 22.4% at the upper end. There is also a 7.7% VAT on many goods and services, a real estate capital gains tax of 3-4%, a 4% wealth tax on the market value of assets, and a tax on charitable donations that would otherwise reduce the wealth tax paid. On the positive side, there is no inheritance, inheritance or gift tax in Liechtenstein, and capital gains from the sale of shares to domestic or foreign companies are exempt from tax. So, overall, there are better places than Liechtenstein for individuals who want tax relief to establish tax residency. .