Corporate Tax Rates Compared — 83 Countries Ranked

Target keyword: corporate tax rates worldwide 2026 Category: Tax & Compliance TLDR: A complete ranking of corporate tax rates across all 83 countries on the incorporate.ltd platform, plus key context on effective rates vs headline rates.

Headline Rates vs Effective Rates

Headline rate: The statutory rate in the tax code. Effective rate: What you actually pay after deductions, allowances, and incentives.

These can differ dramatically. Ireland's headline rate is 12.5%, but companies using the IP box pay 6.25%. Germany's headline is ~30%, but R&D deductions reduce effective rates substantially.

The 83 Countries — By Region

Near Zero / 0% Corporate Tax | Country | CT Rate | Notes | |---|---|---| | BVI | 0% | Offshore; substance law applies | | Cayman Islands | 0% | Offshore; substance law applies | | Bermuda | 0% | Offshore; substance law applies | | Bahamas | 0% | Limited substance | | Vanuatu | 0% | Least known; limited infrastructure | | Bahrain | 0% (non-oil) | Growing as GCC business hub | | UAE | 0–9% | 0% under AED 375K; 9% above | | Georgia | 15% distribution (0% retained) | Virtual Zone = 0% for international IT |

Low Tax (Under 15%) | Country | CT Rate | Notes | |---|---|---| | Bulgaria | 10% | EU; lowest CT in EU | | Kosovo | 10% | | | North Macedonia | 10% | | | Montenegro | 9% | | | Andorra | 10% | | | Qatar (QFC) | 10% (0% in QFC) | QFC entity = 0% | | Cyprus | 12.5% | EU; IP box 2.5% | | Ireland | 12.5% (trading) | 6.25% IP box; 25% passive | | Hungary | 9% | EU; lowest headline in EU | | Lithuania | 5% (small cos) / 15% | 5% for small companies |

Moderate Tax (15–20%) | Country | CT Rate | Notes | |---|---|---| | Romania | 1% (micro) / 16% | Micro = <€500K revenue | | Estonia | 0% retained / 20% distribution | Cash-flow advantage | | Latvia | 0% retained / 20% distribution | Same model as Estonia | | Singapore | 17% | Startup exemptions; effective lower | | Hong Kong | 16.5% | 8.25% on first HK$2M | | Switzerland | 11.9–21% (varies canton) | Zug: ~11.9%; Geneva: ~14% | | Saudi Arabia | 20% (foreign cos) | 2.5% Zakat on Saudi shareholders | | Malaysia | 24% (17% SMEs) | | | Mauritius | 15% (3% GBL) | GBL companies 3% effective | | Georgia | 15% | 0% for Virtual Zone international |

Standard Tax (20–25%) | Country | CT Rate | Notes | |---|---|---| | UK | 25% (19% ≤£50K) | Patent box: 10% | | Indonesia | 22% | | | Vietnam | 20% | | | Thailand | 20% | | | Philippines | 25% (20% SMEs) | | | South Korea | 9–24% | Progressive | | Turkey | 25% | | | South Africa | 27% | | | Colombia | 35% | | | Israel | 23% | |

Higher Tax (25–35%) | Country | CT Rate | Notes | |---|---|---| | Germany | ~30% effective | 15% KSt + 5.5% soli + Gewerbesteuer | | France | 25% | Historical surtaxes for large companies | | Spain | 25% | | | Portugal | 21% + surtaxes | Up to 31.5% for large profits | | Netherlands | 19% / 25.8% | 19% on first €200K | | Luxembourg | 24.94% | | | Japan | ~30% effective | Federal + local | | China | 25% | HNTE: 15% | | Brazil | 34% | | | Mexico | 30% | | | India | 25% (domestic) / 40% (foreign branch) | | | Nigeria | 30% | | | Kenya | 30% | | | Tanzania | 30% | | | Egypt | 22.5% | | | Argentina | 35% | |

High Tax (35%+) | Country | CT Rate | Notes | |---|---|---| | Malta | 35% (effective ~5%) | 6/7 refund to shareholders | | USA | 21% federal + state | Combined ~26% | | Australia | 30% (25% SMEs) | | | Pakistan | 29% | | | Bangladesh | 27.5% | | | Panama | 25% | |

Key Points for Tax Planning

1. Effective rate beats headline rate — Ireland's 12.5% with IP box is 6.25%. Malta's 35% is effectively ~5% after shareholder refunds. 2. Size thresholds matter — UK's 19% applies only up to £50K profit; Singapore's 0% applies only for first 3 years of a startup. 3. Sectoral rates — many countries offer reduced rates for manufacturing, tech, or IP companies. 4. Global minimum tax — the OECD's 15% global minimum corporate tax (Pillar Two) will gradually eliminate rates below 15% for large multinationals (€750M+ revenue threshold).

---