Note: Does not include Tax Havens / Countries with 0% Tax, Refer to 1. below to find out prominent tax havens or visit TaxFoundation for the complete dataset. Ties are sorted alphabetically.
Developed by Pranav @charts_and_beyond
Read more about the state of taxation here:
1 - Corporate Tax Rate in every Country
2 - Personal Income Tax Rate in every Country
Several nations have maintained enticing tax rates, enticing businesses with a favorable fiscal environment. Over the years, Turkmenistan, Montenegro, and Bosnia and Herzegovina consistently feature among the top countries with the lowest corporate tax rates.
Evolution Over Years:
The data reflects dynamic changes in corporate tax rates. Notable shifts include Hungary's decrease from 18% in 1995 to 9% in 2023 and Barbados maintaining a steady low rate of 5.5% from 2020 to 2023, showcasing the evolution in tax policies.
Global Implications:
Low corporate tax rates can attract foreign investment, stimulate economic growth, and enhance a country's competitiveness. However, concerns regarding tax avoidance and revenue loss for public services underscore the need for a balanced approach in global taxation discussions.
Side effects of having low corporate taxes?
- Revenue Shortfalls: Low corporate taxes can lead to significant revenue shortfalls for governments, limiting their ability to fund public services, infrastructure projects, and social programs.
- Wealth Inequality: Reduced corporate tax rates may contribute to increased wealth inequality as the burden of funding government activities shifts towards individuals, potentially exacerbating economic disparities.
- Tax Competition: Countries engaging in a race to the bottom with low corporate taxes may create a global environment where businesses prioritize jurisdictions with the lowest tax rates, fostering tax avoidance and reducing the overall tax base.
Conclusion:
As countries strategically position themselves as corporate tax havens, a nuanced understanding of the economic and regulatory implications is crucial. Policymakers globally must navigate this terrain carefully to strike a balance between fostering economic growth and ensuring a fair distribution of tax responsibilities. The five-year overview sheds light on the persistent efforts of certain nations to create a tax-friendly ecosystem, raising important questions about the long-term sustainability and equity of such practices.
Rank | country | Year | Tax (%) |
---|---|---|---|
1 | China, Hong Kong Special Administrative Region | 1980 | 17 |
2 | Jersey | 1980 | 20 |
3 | Guernsey | 1980 | 20 |
4 | Ecuador | 1980 | 20 |
5 | Puerto Rico | 1980 | 22 |
6 | Uruguay | 1980 | 25 |
7 | Bolivia (Plurinational State of) | 1980 | 30 |
8 | El Salvador | 1980 | 30 |
9 | Paraguay | 1980 | 30 |
10 | Malta | 1980 | 32.5 |
1 | British Virgin Islands | 1985 | 15 |
2 | Liechtenstein | 1985 | 15 |
3 | China, Macao Special Administrative Region | 1985 | 15 |
4 | China, Hong Kong Special Administrative Region | 1985 | 18.5 |
5 | Jersey | 1985 | 20 |
6 | Guernsey | 1985 | 20 |
7 | Ecuador | 1985 | 20 |
8 | Lebanon | 1985 | 22 |
9 | Puerto Rico | 1985 | 22 |
10 | Chile | 1985 | 23.5 |
1 | Bolivia (Plurinational State of) | 1990 | 2.5 |
2 | Liechtenstein | 1990 | 15 |
3 | China, Macao Special Administrative Region | 1990 | 15 |
4 | British Virgin Islands | 1990 | 15 |
5 | China, Hong Kong Special Administrative Region | 1990 | 16.5 |
6 | Jersey | 1990 | 20 |
7 | Isle of Man | 1990 | 20 |
8 | Guernsey | 1990 | 20 |
9 | Argentina | 1990 | 20 |
10 | Puerto Rico | 1990 | 22 |
1 | Liechtenstein | 1995 | 15 |
2 | China, Macao Special Administrative Region | 1995 | 15 |
3 | British Virgin Islands | 1995 | 15 |
4 | China, Hong Kong Special Administrative Region | 1995 | 16.5 |
5 | Hungary | 1995 | 18 |
6 | Puerto Rico | 1995 | 19 |
7 | Guernsey | 1995 | 20 |
8 | Isle of Man | 1995 | 20 |
9 | Jersey | 1995 | 20 |
10 | Ukraine | 1995 | 22 |
1 | Lebanon | 2000 | 10 |
2 | The former Yugoslav Republic of Macedonia | 2000 | 15 |
3 | British Virgin Islands | 2000 | 15 |
4 | China, Macao Special Administrative Region | 2000 | 15 |
5 | Chile | 2000 | 15 |
6 | Liechtenstein | 2000 | 15 |
7 | China, Hong Kong Special Administrative Region | 2000 | 16 |
8 | Hungary | 2000 | 18 |
9 | Serbia | 2000 | 20 |
10 | Georgia | 2000 | 20 |
1 | Montenegro | 2005 | 9 |
2 | Bosnia and Herzegovina | 2005 | 10 |
3 | Serbia | 2005 | 10 |
4 | Cyprus | 2005 | 10 |
5 | China, Macao Special Administrative Region | 2005 | 12 |
6 | Oman | 2005 | 12 |
7 | Ireland | 2005 | 12.5 |
8 | British Virgin Islands | 2005 | 15 |
9 | Bulgaria | 2005 | 15 |
10 | Isle of Man | 2005 | 15 |
1 | Turkmenistan | 2010 | 8 |
2 | Montenegro | 2010 | 9 |
3 | Uzbekistan | 2010 | 9 |
4 | Kyrgyzstan | 2010 | 10 |
5 | The former Yugoslav Republic of Macedonia | 2010 | 10 |
6 | Qatar | 2010 | 10 |
7 | Serbia | 2010 | 10 |
8 | Albania | 2010 | 10 |
9 | Paraguay | 2010 | 10 |
10 | Bosnia and Herzegovina | 2010 | 10 |
1 | Uzbekistan | 2015 | 7.5 |
2 | Turkmenistan | 2015 | 8 |
3 | Montenegro | 2015 | 9 |
4 | Bosnia and Herzegovina | 2015 | 10 |
5 | Gibraltar | 2015 | 10 |
6 | The former Yugoslav Republic of Macedonia | 2015 | 10 |
7 | Bulgaria | 2015 | 10 |
8 | Timor-Leste | 2015 | 10 |
9 | Andorra | 2015 | 10 |
10 | Kosovo, Republic of | 2015 | 10 |
1 | Barbados | 2020 | 5.5 |
2 | Turkmenistan | 2020 | 8 |
3 | Hungary | 2020 | 9 |
4 | Montenegro | 2020 | 9 |
5 | Qatar | 2020 | 10 |
6 | Paraguay | 2020 | 10 |
7 | Gibraltar | 2020 | 10 |
8 | Andorra | 2020 | 10 |
9 | Kyrgyzstan | 2020 | 10 |
10 | Bosnia and Herzegovina | 2020 | 10 |
1 | Barbados | 2023 | 5.5 |
2 | Turkmenistan | 2023 | 8 |
3 | Hungary | 2023 | 9 |
4 | United Arab Emirates | 2023 | 9 |
5 | The former Yugoslav Republic of Macedonia | 2023 | 10 |
6 | Kyrgyzstan | 2023 | 10 |
7 | Timor-Leste | 2023 | 10 |
8 | Kosovo, Republic of | 2023 | 10 |
9 | Paraguay | 2023 | 10 |
10 | Qatar | 2023 | 10 |
Data as of 2023. Changelog:- 1- Changed Isle of Man & Turkmenistan flags 2 - Country ties are now alphabetically sorted
https://taxfoundation.org/data/all/global/corporate-tax-rates-by-country-2023/