Countries With The Highest Corporate Tax Rates in the World 2025

There is a wide range of corporate tax rates around the world ranging from 0% to over 50%. For anyone looking to maximize business revenue finding a country that has a low corporate tax rate might be the difference between tens of thousands if not millions of dollars. There are dozens of low tax countries around the world that attract companies with liberal corporate policies, much to the dismay of high tax countries that wish for nothing more than to prevent businesses from leaving their jurisdiction.

More than 50% of countries around the world have a higher tax rate than the global average at 23.51 percent. 

Let's find out who they are.

Key Takeaways

• Corporate tax rates vary widely across the globe, ranging from 9% to 50%/
• Several countries are adjusting their rates, with some increasing to boost revenue and others decreasing to attract investment.
• The global average corporate tax rate continues its downward trend, reaching 23.37% in 2025.

Overview

Many countries have recognized the impact of high corporate tax rates on business investment. As a result, a substantial number of jurisdictions have adjusted their rates to remain competitive which has resulted in a steady decrease in corporate taxation worldwide with:

• 143 out of 225 jurisdictions now having a tax rate at or below 25%
• 125 jurisdictions having rates between 20% and 30%.

The United States maintains a 21% corporate tax rate, following a significant reduction from 35% in 2017. This change aligned the U.S. more closely with global trends.

Some nations employ unique tax structures. For instance, Estonia taxes only distributed profits at 20%, leaving undistributed profits tax-exempt.

Corporate tax policies often reflect broader economic strategies. Countries with well-established economies or high public spending may opt for higher rates to balance corporate contributions with government needs.

What is Corporate Income Tax?

Corporate income tax is a direct tax levied on the profits of corporations and other business entities. It serves as a major source of government revenue in many countries. This tax applies to business profits after deducting allowable expenses and depreciation. The importance of corporate income tax extends beyond revenue generation. It influences investment decisions, economic growth, and business operations. Many governments use corporate tax policies to attract foreign investment or encourage specific economic activities.

General Corporate Income Tax Vs. Statutory Corporate Tax Rates

General corporate income tax refers to the overall tax burden on corporate profits, including various deductions and credits. Statutory corporate tax rates, in contrast, are the headline rates set by law. These rates often differ from effective tax rates that companies actually pay.

Statutory rates provide a starting point for tax calculations. However, effective rates can be lower due to deductions, exemptions, and tax planning strategies. For example, the Netherlands employs a two-tiered system with rates of 19% for profits up to €200,000 and 25.8% above that threshold. This approach benefits smaller businesses while maintaining higher rates for larger corporations.

Historical Changes and Trends

With the global average corporate tax rate steadily declining over the past four decades, many countries find themselves in a race to the bottom. In 2000 average tax rate was above 30%. By 2025, this number has decreased nearly 7%.

Notably, countries like Barbados, Turkmenistan, and Hungary have implemented some of the lowest rates globally, ranging from 5.5% to 9%. In contrast, Comoros, Puerto Rico, and Suriname maintain the highest rates, between 36% and 50%.

Several jurisdictions, including the United Arab Emirates, Bahamas and Cayman Islands have opted for a 0% corporate tax rate. This trend highlights the ongoing competition among nations to attract foreign investment through favorable tax policies.

Impact of Global Minimum Tax

The introduction of a global minimum tax agreement has significantly influenced corporate tax trends. This initiative aims to establish a 15% minimum rate for large multinational corporations.

Many countries have adjusted their tax policies in response to this agreement. Some have increased their rates to meet the minimum threshold, while others have introduced new rules to ensure compliance.

The global minimum tax has reduced the effectiveness of tax havens and low-tax jurisdictions. It has also prompted a reevaluation of corporate tax strategies worldwide, leading to more uniform rates across developed economies. However as of yet there is not a global consensus on a global tax rate minimum.

Top 10 Countries With the Highest Corporate Tax Rate

Although there are slight discrepancies in data between different organizations, for this list and for the stats below we used data from the Tax Foundation.

1. Comoros: 50%
2. Puerto Rico: 37.5%
3. Suriname: 36%
4. Argentina: 35%
5. Chad: 35%
6. Colombia: 35%
7. Cuba: 35%
8. Equatorial Guinea: 35%
9. Malta: 35%
10. Sudan: 35%

1. Comoros

Corporate tax rate: 50%

Comoros, an archipelagic nation in the Indian Ocean, maintains a corporate tax rate of 50% as of 2024. This rate applies to both domestic and foreign companies operating within the country.

The high corporate tax rate in Comoros stands out when compared to the global average of 23.51%. It is one of the highest rates worldwide, potentially impacting business investment decisions.

Comoros' tax system includes additional levies on corporations:

• Business license tax
• Property tax
• Social security contributions

The government uses tax revenue to fund public services and infrastructure development. However, the high rate may pose challenges for attracting foreign investment.

Comoros offers limited tax incentives for specific sectors or economic zones. These incentives aim to promote growth in key industries, but their effectiveness is constrained by the overall high tax burden.

The country's tax administration faces challenges in enforcement and collection. This can lead to inconsistencies in tax application and potential revenue leakage.

2. Puerto Rico

Corporate tax rate: 37.5%

Puerto Rico stands out with one of the highest corporate tax rates globally at 37.5%. This rate significantly exceeds the average among surveyed jurisdictions.

The tax structure in Puerto Rico is complex. It includes a base rate plus a surtax on income above certain thresholds.

For companies with income exceeding $275,000, an additional 19% surtax applies. This can result in a substantial tax burden for high-earning corporations.

Despite the high rate, Puerto Rico offers various tax incentives to attract businesses. These include:

• Export services incentives
• Manufacturing incentives
• Tourism development incentives

These programs aim to offset the high corporate tax rate and encourage economic growth on the island.

It's important to note that Puerto Rico's tax system operates independently from the U.S. federal tax system, despite being a U.S. territory. This unique status allows for its distinct corporate tax policies.

3. Suriname

Corporate tax rate: 36%

Suriname, a small South American nation, has maintained a relatively high corporate tax rate in recent years. The country's corporate tax structure has seen minimal changes since 2013.

As of 2024, the corporate tax rate in Suriname stands at 36%. This rate has remained consistent since 2013, with only a brief dip to 34.5% in 2014.

Suriname's corporate tax rate is significantly higher than the global average. For context, the average corporate tax rate among 225 jurisdictions surveyed in 2024 is 23.51%.

The stability of Suriname's corporate tax rate may provide predictability for businesses operating in the country. However, the high rate could potentially impact the nation's competitiveness in attracting foreign investment.

Economic forecasts suggest that Suriname's corporate tax rate is expected to remain at 36% through 2025. This projection indicates a continuation of the country's current tax policy in the near future.

4. Argentina

Corporate tax rate: 35%

Argentina has implemented significant changes to its corporate tax structure in recent years which is now at 35%. As of 2024, the country maintains a progressive corporate tax rate system.

The tax rates for Argentine companies are as follows:

• 25% for taxable income up to ARS 34,703,523.08
• 35% for taxable income exceeding ARS 34,703,523.08

These rates are indexed annually to account for inflation.

Argentine companies are taxed on their worldwide income. This means they must report and pay taxes on both domestic and foreign-source earnings.

To prevent double taxation, Argentina allows resident legal entities to claim tax credits for similar taxes paid abroad on foreign-source income. This provision helps businesses operating internationally to avoid paying taxes twice on the same income.

The current corporate tax rates in Argentina are higher compared to the global average. While many countries have been reducing their corporate tax rates, Argentina increased its rate from 30% to 35% in recent years.

This tax structure aims to balance revenue generation for the government with maintaining Argentina's competitiveness in attracting foreign investment. The progressive rate system is designed to provide some relief for smaller businesses while ensuring larger corporations contribute a higher share.

5. Chad

Corporate tax rate: 35%

Chad, a country in north-central Africa, maintains a relatively high corporate tax rate compared to global averages. As of 2024, Chad's corporate tax rate stands at 35%.

This rate positions Chad among the nations with higher corporate tax burdens worldwide. It reflects the country's fiscal policy aimed at generating revenue from businesses operating within its borders.

Chad's corporate tax structure applies to both domestic and foreign companies conducting business in the country. The rate is applicable to taxable profits earned by these entities.

It's worth noting that Chad's corporate tax rate has remained stable in recent years. This consistency provides some level of predictability for businesses operating in or considering entry into the Chadian market.

When compared to the global average corporate tax rate of 23.51%, Chad's rate is significantly higher. This difference may impact the country's competitiveness in attracting foreign direct investment.

Businesses operating in Chad should consider the following implications of the 35% corporate tax rate:

• Higher tax liability compared to many other countries
• Potential impact on profit margins
• Importance of efficient tax planning strategies
• Need for accurate financial reporting and compliance

6. Colombia

Corporate tax rate: 535%

Colombia's corporate income tax (CIT) rate stands at 35% for the 2024 fiscal year. This rate applies to both domestic and foreign companies operating within the country.

In addition to the standard CIT, Colombia imposes a surtax on certain industries. This surtax affects companies in the financial and extraction sectors with taxable income exceeding approximately USD 588,362 for FY 2024.

The surtax rates vary based on market prices and industry:

• 5% to 10% for most affected industries
• Up to 15% for oil extraction companies

Colombia's tax system also includes a dividend tax. Non-resident shareholders face a 10% withholding tax on dividends from profits taxed at the corporate level.

The country has implemented measures to combat tax evasion and promote transparency. These include stricter reporting requirements and enhanced information exchange with other jurisdictions.

Colombian tax authorities have been focusing on transfer pricing regulations to ensure fair taxation of multinational enterprises operating within the country.

7. Cuba

Corporate tax rate: 35%

Cuba maintains a unique corporate tax system compared to many other countries. The standard corporate tax rate in Cuba is 35%, which is higher than the global average of 23.51%.

This rate applies to most businesses operating in the country. However, Cuba offers some variations based on specific sectors and circumstances.

For example, companies in certain industries or those operating in special economic zones may be eligible for reduced rates. These can range from 15% to 30%, depending on the nature of the business and its location.

Cuban tax policy also includes provisions for foreign investors. Joint ventures and wholly foreign-owned companies may negotiate preferential tax rates with the government.

It's worth noting that Cuba's tax system is subject to change as the country continues to adapt its economic policies. Businesses considering operations in Cuba should consult with local tax experts for the most up-to-date information.

Despite its higher corporate tax rate, Cuba's economic landscape presents unique opportunities for certain industries. The government often prioritizes investments in sectors such as tourism, renewable energy, and biotechnology.

8. Equatorial Guinea

Corporate tax rate: 35%

Equatorial Guinea maintains one of the highest corporate tax rates globally. As of 2024, the country's corporate tax rate stands at 35%, placing it among the top-tier nations for corporate taxation.

This West African nation's tax structure includes additional provisions for businesses operating within its borders. Companies must also contend with a minimum income tax (MIT) of 1% on the previous year's turnover.

The MIT has a floor of 800,000 Central African CFA francs, ensuring a baseline contribution from all corporate entities regardless of their size or profitability.

Despite global trends towards lower corporate tax rates, Equatorial Guinea has maintained its high rate. This approach diverges from many other nations seeking to attract foreign investment through more competitive tax policies.

The country's corporate tax rate has remained stable in recent years. Historical data shows that the rate reached its current level of 35% in 2006 and has not changed since, indicating a consistent fiscal policy approach.

Equatorial Guinea's high corporate tax rate may impact its competitiveness in attracting international businesses. However, the country's natural resources, particularly in the oil and gas sectors, continue to draw foreign investment despite the tax burden.

9. Malta

Corporate tax rate: 35%

Malta maintains one of the highest nominal corporate tax rates globally at 35%. This rate applies to both resident and non-resident companies on their income and capital gains.

Despite the high headline rate, Malta offers a unique tax refund system. Under this system, shareholders can claim refunds on the tax paid by the company upon distribution of dividends.

The effective tax rate can be reduced significantly through these refunds. In many cases, it can drop to around 5% for trading income and 10% for passive income.

Malta has recently implemented new tax legislation. On February 20, 2024, the country transposed the EU Minimum Tax Directive, incorporating Pillar II rules into its legal framework.

Key features of Malta's corporate tax system include:

• Full imputation system
• Participation exemption regime
• No withholding taxes on dividends, interest, and royalties
• Extensive double tax treaty network

Malta's tax system aims to attract international businesses while adhering to EU and global tax standards. The combination of a high nominal rate and generous refund mechanisms creates a distinctive approach to corporate taxation.

10. Sudan

Corporate tax rate: 35%

Sudan's corporate tax landscape reflects its complex economic situation. The country imposes a standard corporate tax rate of 35% on most businesses operating within its borders.

This rate applies to both domestic and foreign companies, with few exceptions. However, certain sectors may face different tax treatment.

Oil companies operating in Sudan are subject to a higher tax rate of 40%. This reflects the government's efforts to maximize revenue from its natural resources.

Agricultural businesses enjoy a more favorable tax environment. They benefit from a reduced corporate tax rate of 10%, aimed at encouraging investment in this vital sector.

Sudan's tax system also includes additional levies:

• Zakat: A 2.5% religious tax on profits
• Social Development Tax: 2% of taxable income

Foreign investors should note that Sudan has limited tax treaties with other nations. This may impact international business operations and lead to potential double taxation issues.

The Sudanese government has been working to improve its tax administration. Recent efforts focus on digitalization and simplifying compliance procedures for businesses.

Despite these initiatives, Sudan's corporate tax rate remains relatively high compared to global averages. This factor may influence investment decisions for companies considering operations in the country.

Top 50 Countries Ranked By Highest Corporate Tax Rate

 *Data from Trading Economics

Tax Rates for Non Resident Companies

Tax rates for businesses are usually levied only on companies that conduct business within in its borders. For any business conducted outside its jurisdiction many countries offer 0% taxation.

This is how the whole offshore business sector survives. The Caribbean islands are not the only countries that have this type of policy.

Many EU countries as well as the U.S. have this type of tax policy which allow the government to encourage businesses to incorporate in the country, higher local workers and benefit from incorporation fees, while giving businesses a free pass on all profits made outside of its borders. Learn more below.

Corporate Tax Rate Structure by Area

OECD Member States

OECD countries generally have well-developed tax systems with moderate to high corporate tax rates. The United States lowered its federal corporate tax rate to 21% in 2018. France has a standard rate of 25% as of 2022. Germany maintains a more complex system with a federal rate of 15% plus local trade taxes, resulting in a combined rate around 30%.

Japan's effective corporate tax rate stands at approximately 29.74%. The United Kingdom reduced its main rate to 19% in recent years. Canada's federal corporate tax rate is 15%, with provincial rates adding 11-16% depending on the location.

Some OECD members have notably low rates. Ireland's 12.5% rate for trading income has attracted multinational corporations. Hungary implemented a 9% flat rate, one of the lowest in the European Union.

Non-OECD Countries

Many non-OECD nations use corporate taxation as a tool for economic development. Brazil's standard corporate income tax rate is 15%, with a 10% surtax on income exceeding a certain threshold. Russia applies a 20% rate, split between federal and regional budgets.

India's corporate tax regime underwent significant changes, with the basic rate reduced to 22% for domestic companies. China maintains a standard rate of 25%, but offers reduced rates for qualified enterprises in encouraged sectors or regions.

Some emerging economies have higher rates. Argentina's corporate tax rate stands at 35%. Nigeria imposes a 30% rate on large companies.

Low-Tax Jurisdictions

Several countries and territories have positioned themselves as tax havens by offering exceptionally low corporate tax rates. The Cayman Islands, Bahamas, and Bermuda stand out with 0% corporate tax rates. These jurisdictions attract multinational corporations seeking to minimize their tax burdens.

Other low-tax jurisdictions include:

• Jersey: 0% (standard rate)
• Guernsey: 0% (standard rate)
• Bahrain: 0% (most sectors)

Some countries maintain low, but not zero, rates:

• Ireland: 12.5%
• Hong Kong: 16.5%
• Singapore: 17%

These jurisdictions often combine low tax rates with other business-friendly policies to attract foreign investment and corporate headquarters.

The United Arab Emirates historically had no federal corporate tax, but introduced a 9% rate effective June 2023. Bahrain generally does not impose corporate tax except on oil companies.

The Isle of Man, while not a zero-tax jurisdiction, offers a 0% standard rate for most companies. Gibraltar applies a 10% rate. Singapore, though not typically classified as a tax haven, maintains a competitive 17% rate with various incentives and exemptions available.

Factors Influencing Taxation

Developing countries often use lower tax rates to attract foreign investment and boost economic growth. This strategy aims to create jobs, increase productivity, and stimulate technological advancements.

In contrast, developed nations may maintain higher corporate tax rates to fund public services and infrastructure. These countries often have established business environments that can support higher taxes without significantly deterring investment.

The level of economic diversification also impacts tax policies. Countries with diverse economies may implement sector-specific tax rates to promote growth in targeted industries.

Governments frequently use tax incentives and exemptions to influence business investment decisions. These tools can target specific industries, regions, or activities deemed beneficial to the national economy.

Tax credits are common incentives that reduce a company's tax liability based on certain activities, such as research and development or job creation. Some countries offer tax holidays, providing temporary exemptions for new businesses or investments in underdeveloped areas.

Special economic zones often feature reduced tax rates or exemptions to attract foreign direct investment. These zones aim to create employment opportunities and stimulate regional development.

Exemptions may also be granted for specific types of income or expenses, such as profits reinvested in the business or costs related to environmental protection measures.

Comparison of Effective Corporate Tax Rates

Effective corporate tax rates often differ from statutory rates due to various deductions, credits, and incentives. This discrepancy can significantly impact a company's actual tax burden.

For example, while the United States has a statutory corporate tax rate of 21%, many large corporations pay a much lower effective rate. Some even manage to pay no federal income tax in certain years through strategic use of tax breaks.

In contrast, some countries with lower statutory rates may have higher effective rates due to fewer available deductions. This can lead to surprising results when comparing international tax burdens.

Certain tax havens like Barbados (5.5%) and Turkmenistan (8%) maintain very low effective rates to attract foreign investment. On the other hand, countries like Comoros (50%) and Puerto Rico (37.5%) have much higher effective rates.

Many nations employ a tiered system. The Netherlands, for instance, charges 19% on profits up to €200,000 and 25.8% above that threshold. This approach aims to provide relief for smaller businesses.

Effective tax rates can also be influenced by industry-specific incentives. Research and development tax credits, for example, can significantly reduce the tax burden for technology and pharmaceutical companies.

Taxation Affecting Business

Corporate tax rates significantly impact business decisions across the globe. Companies carefully consider tax implications when choosing where to establish operations or expand internationally.

High corporate tax rates can deter investment and business activity in a country. Multinational companies often seek jurisdictions with more favorable tax environments to maximize profits.

Some key factors businesses evaluate include:

• Effective tax rates
• Double taxation agreements
• Tax incentives and exemptions
• Complexity of tax code
• Stability of tax system

Lower corporate tax rates generally attract more foreign direct investment. Countries may compete by offering tax breaks to entice large companies.

However, businesses weigh tax considerations against other factors like:

• Market potential
• Labor costs and skills
• Infrastructure
• Political stability
• Regulatory environment

International Tax Planning Strategies

Use of Tax Havens

Tax havens offer low or zero tax rates, attracting businesses seeking to minimize their tax liabilities. Companies establish subsidiaries or holding structures in jurisdictions like the Cayman Islands, Bermuda, and Luxembourg.

These locations provide confidentiality and favorable tax treatments. Firms can route profits through tax haven entities, reducing taxable income in higher-tax countries.

Patent boxes are another tool used in some tax-friendly jurisdictions. They allow for lower tax rates on income derived from intellectual property.

Profit Shifting and Tax Avoidance

Transfer pricing is a key mechanism for shifting profits between subsidiaries. Companies set prices for intra-group transactions to allocate income to lower-tax jurisdictions.

This practice requires careful documentation to justify pricing methods. Firms must navigate complex regulations to ensure compliance with arm's length principles.

Other strategies include debt shifting, where interest payments flow to low-tax affiliates. Treaty shopping involves structuring operations to benefit from favorable tax treaties between countries.

Companies also use hybrid entities and instruments to exploit differences in tax treatments across jurisdictions. These complex structures aim to minimize global effective tax rates.

Corporate Tax Compliance and Reporting Obligations

Corporate tax compliance involves adhering to regulations and filing requirements across various tax jurisdictions. Companies must maintain accurate financial records and submit timely reports to relevant tax authorities.

Most countries require businesses to file annual corporate tax returns. These typically include detailed financial statements and tax calculations based on the fiscal year. Some nations mandate quarterly or monthly tax payments as well.

Multinational corporations face additional complexities. They must navigate transfer pricing rules, controlled foreign corporation regulations, and country-by-country reporting obligations.

Key compliance areas include:

• Accurate bookkeeping and financial reporting
• Timely filing of tax returns and payments
• Proper documentation of tax positions and calculations
• Compliance with industry-specific tax rules

Many jurisdictions have implemented electronic filing systems to streamline the reporting process. This shift aims to improve efficiency and reduce errors in tax submissions.

Penalties for non-compliance can be severe, including fines, interest charges, and potential criminal prosecution. To mitigate risks, companies often employ tax professionals or use specialized software to manage their reporting obligations.

As tax laws evolve, businesses must stay informed about changes in reporting requirements. This includes updates to tax rates, deductions, credits, and filing deadlines across relevant jurisdictions.