Corporation Tax - Corporate Tax Rates

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.

Comparison of Corporate Income Taxes
As a Percentage of GDP
For the US and OECD Countries, 2008
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

Famous quotes containing the words corporate, tax and/or rates:

    “It’s hard enough to adjust [to the lack of control] in the beginning,” says a corporate vice president and single mother. “But then you realize that everything keeps changing, so you never regain control. I was just learning to take care of the belly-button stump, when it fell off. I had just learned to make formula really efficiently, when Sarah stopped using it.”
    Anne C. Weisberg (20th century)

    People buy their necessities in shops and have to pay dearly for them because they have to assist in paying for what is also on sale there but only rarely finds purchasers: the luxury and amusement goods. So it is that luxury continually imposes a tax on the simple people who have to do without it.
    Friedrich Nietzsche (1844–1900)

    In the U.S. for instance, the value of a homemaker’s productive work has been imputed mostly when she was maimed or killed and insurance companies and/or the courts had to calculate the amount to pay her family in damages. Even at that, the rates were mostly pink collar and the big number was attributed to the husband’s pain and suffering.
    Gloria Steinem (20th century)