corporate tax presentation

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I want to lead, i want to learn, register for the newsletter, resource library, budget, deficits, and debt, demographics, defense and national security, other programs, retirement security, taxes and revenues, infographics, you are here, the u.s. corporate tax system explained.

The U.S. corporate tax system is a subject of frequent debate, with significant implications for the nation’s economy and fiscal outlook. Over the past several years, lawmakers from both parties have pursued major changes to this area of the tax code, including the enactment of the 2017 Tax Cuts and Jobs Act (TCJA), which dramatically reduced the corporate tax rate.

Presently, revenues raised by the corporate income tax represent the third-largest category of federal tax revenue in the United States, trailing those generated from the individual income and payroll taxes. This explainer describes how the U.S. corporate income tax system works, the ways it has evolved in recent years, and the implications for the United States’ fiscal and economic condition.

How Does the U.S. Corporate Income Tax Work?

Like most other countries, the United States levies a tax on the net profits — that is, the total income minus the costs associated with generating that income — of corporations. The TCJA, enacted in December 2017, reduced the federal tax rate on corporations to 21 percent, a decrease of 14 percentage points from its previous level of 35 percent. The current rate of 21 percent is low by historical standards — in the 1950s and 1960s, the statutory rate averaged over 50 percent.

The statutory rate for federal corporate taxes has declined over time

The current federal corporate tax rate is applied to all business income of C corporations, an Internal Revenue Service (IRS) designation that distinguishes a business as a taxable entity. Additionally, 44 states and the District of Columbia impose their own taxes on corporate income. Therefore, a C corporation operating in the United States could face a combined tax rate in excess of 21 percent. In 2022, corporations paid an average combined tax rate of 26 percent. For context, the average combined national and sub-national corporate income tax rate among G7 countries was 26 percent.

The combined and federal statutory corporate income tax rates in the United States are generally in line with those of other G7 economies

Importantly, not all businesses are taxed as corporations. Pass-through businesses, such as sole proprietorships, partnerships, S corporations, and limited liability companies allocate profits to their owners who then pay taxes on those profits through the individual income tax code. In recent years, pass-through entities have grown to represent an increasingly large percentage of all businesses, and therefore business income, in the United States. In 1980, for example, C corporations represented 17 percent of all businesses, but by 2015 (the year for which the most recent data are available) had come to represent just 5 percent. S corporations (companies with a small number of shareholders and who elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes) experienced the largest increase over this period, growing from just 4 percent of all businesses in 1980 to 13 percent in 2015.

The share of net business income represented by passthrough entities has been rising since 1980

How Much Revenue from the Corporate Income Tax Does the Federal Government Collect?

Corporate income taxes are the third-largest source of revenues for the federal government. However, as a share of total federal tax collections, the corporate income tax accounts for a relatively small amount. In 2023, the federal government is projected to collect $475 billion from the corporate income tax, just 10 percent of the total $4.8 trillion in federal tax revenues that year.

The federal government collects revenues from a variety of sources

As the statutory rate has decreased and the prevalence of pass-through businesses has increased, revenues from corporate taxes have declined as a share of GDP. In the 1950s and 1960s, corporate tax revenues represented an average of 4.2 percent of GDP — in 2022, they represented just 1.7 percent.

Revenues from corporate income taxes has decreased since the 1950s

The share of corporate income tax revenues as a percentage of the economy in the United States is one of the lowest among G7 countries who, on average, collect 2.3 percent of GDP from that source.

As a share of GDP, U.S. corporate income tax revenues are the lowest among G7 countries

One reason that corporate income tax revenues represent such a small percentage relative to the size of the U.S. economy is the offsetting effect of tax expenditures . Tax expenditures include exclusions, exemptions, deductions, and credits that reduce total tax liability. In 2022, the reduced tax rate on the income of controlled foreign corporations, the credit for depreciation of business equipment, and the credit for increasing research and development activities collectively reduced total federal corporate income tax revenues by over $100 billion. In 2023, the United States will forgo $161 billion in revenues due to corporate tax expenditures.

Corporate tax expenditures will be nearly one-third the amount of corporate revenues in 2023

The federal government collects low levels of revenues from the corporate income tax system and forgoes billions of dollars in collections to tax expenditures. As annual deficits continue to widen and the national debt reaches historically unprecedented levels , many economists and experts suggest various tax reforms , including some to the corporate tax code that can help make our nation’s fiscal outlook more sustainable.

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Corporate Tax Rates around the World, 2022

Key findings.

In 2022, 16 countries made changes to their statutory corporate income tax A corporate income tax (CIT) is levied by federal and state governments on business profits. Many companies are not subject to the CIT because they are taxed as pass-through businesses , with income reportable under the individual income tax . rates. Six countries— Colombia , South Sudan, Netherlands , Turkey , Chile , and Montenegro—increased their top corporate tax A tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. rates, while 10 countries—including France , Greece , and Monaco—reduced their corporate tax rates.
Comoros (50 percent), Puerto Rico (37.5 percent), and Suriname (36 percent) are the jurisdictions with the highest corporate tax rates in the world, while Barbados (5.5 percent), Turkmenistan (8 percent), and Hungary (9 percent) levy the lowest corporate rates. Sixteen jurisdictions do not impose a corporate tax.
The worldwide average statutory corporate income tax rate, measured across 180 jurisdictions, is 23.37 percent. When weighted by GDP, the average statutory rate is 25.43 percent.
Asia has the lowest regional average rate at 19.52 percent, while South America has the highest regional average statutory rate at 28.38 percent. However, when weighted by GDP, Europe has the lowest regional average rate at 23.59 percent and South America has the highest at 32.64 percent.
The average top corporate rate among EU27 countries is 21.16 percent, 23.57 percent in OECD countries, and 32 percent in the G7.
The worldwide average statutory corporate tax rate has consistently decreased since 1980 but has leveled off in recent years.
The average statutory corporate tax rate has declined in every region since 1980.

Introduction, notable corporate tax rate changes in 2022.

Scheduled Corporate Tax Rate Changes in the OECD

The Highest and Lowest Corporate Tax Rates in the World

Regional variation in corporate tax rates, distribution of corporate tax rates, the decline of corporate tax rates since 1980 leveled off in recent years, list of all corporate tax rates in 2022.

In 1980, corporate tax rates around the world averaged 40.11 percent, and 46.52 percent when weighted by GDP. [1] Since then, countries have recognized the impact that high corporate tax rates have on business investment decisions; in 2022, the average is now 23.37 percent, and 25.43 when weighted by GDP, for 180 separate tax jurisdictions. [2]

Declines have been seen in every major region of the world, including in the largest economies. In the United States , the 2017 Tax Cuts and Jobs Act brought the country’s statutory corporate income tax rate from the fourth highest in the world closer to the middle of the distribution. [3]

Asian and European countries tend to have lower corporate income tax rates than countries in other regions, and many developing countries have corporate income tax rates that are above the worldwide average.

Today, most countries have corporate tax rates below 30 percent.

Sixteen countries changed their statutory corporate income tax rates in 2022. Six countries increased their top corporate rates: Colombia (31 percent to 35 percent), South Sudan (25 percent to 30 percent), Netherlands [4] (25 percent to 25.8 percent), Turkey (20 percent to 23 percent), Chile (10 percent to 27 percent), and Montenegro (9 percent to 15 percent).

Ten countries across four continents—Seychelles, Sierra Leone, Zambia, Bangladesh, Myanmar, Tajikistan, France, Greece, Monaco, and French Polynesia—reduced their corporate tax rates in 2022. The tax rate reductions ranged from just 1.5 percentage points in Monaco to a 5 percentage point reduction in Seychelles, Sierra Leone, Zambia, and Tajikistan.

Table 1. Notable Corporate Income Tax Rate Changes in 2022
Country	2021 Tax Rate	2022 Tax Rate	Change from 2021 to 2022

Seychelles	30%	25%	-5 ppt
Sierra Leone	30%	25%	-5 ppt
South Sudan	25%	30%	+5 ppt
Zambia	35%	30%	-5 ppt


Bangladesh	32.5%	30%	-2.5 ppt
Myanmar	25%	22%	-3 ppt
Tajikistan	23%	18%	-5 ppt
Turkey	20%	23%	+3 ppt


France	28.4%	25.8%	-2.6 ppt
Greece	24%	22%	-2 ppt
Monaco	26.5%	25%	-1.5 ppt
Montenegro	9%	15%	+6 ppt
Netherlands	25%	25.8%	+0.8 ppt


French Polynesia	27%	25%	-2 ppt


Chile *	10%	27%	+17 ppt
Colombia	31%	35%	+4 ppt
Notes: * In response to the pandemic, Chile has adopted a temporary rate reduction to 10 percent for small businesses. In 2022, for large companies, a 27 percent corporate tax rate applies. Source: Statutory corporate income tax rates are from OECD, “Table II.1. Statutory corporate income tax rate,” updated May 2022, ; PwC, “Worldwide Tax Summaries – Corporate Taxes,” 2022, . Bloomberg Tax, “Country Guides – Corporate Tax Rates,” accessed November 2022, ; and researched individually, see Tax Foundation, “worldwide-corporate-tax-rates,” GitHub, .

Scheduled Corporate Tax Rate Changes in the OECD and Selected Jurisdictions

Among Organisation for Economic Co-operation and Development (OECD) countries, Austria , the United Kingdom , and Turkey have announced they will implement changes to their statutory corporate income tax rate over the coming years. Additionally, the United Arab Emirates and South Africa also plan to amend their corporate income tax rates in 2023.

In Austria , the corporate income tax will be cut from 25 percent to 24 percent in 2023 and further to 23 percent in 2024. [5]
In the United Kingdom , the standard statutory corporate income tax rate is due to increase from 19 percent to 25 percent on April 1, 2023. [6]
In Turkey , the corporate income tax was temporarily increased from 20 percent to 25 in 2021 and 23 percent in 2022. However, in 2023 the corporate income tax will return to 20 percent. [7]
The United Arab Emirates announced the introduction of a federal corporate tax in mid-2023. The proposed corporate income tax rate of 9 percent on taxable income Taxable income is the amount of income subject to tax , after deductions and exemptions . For both individuals and corporations, taxable income differs from—and is less than—gross income. above AED 375,000 (USD 100,000) would apply to all business activities, while a different rate might apply to large multinationals. However, the new corporate income tax will not apply to the extraction of natural resources as these activities are already subject to taxation in the Emirates. [8]
In South Africa, the corporate income tax will be cut from the current 28 percent to 27 percent for fiscal assessment periods that end on March 31, 2023, or after. [9]

One hundred and forty-two of the 225 separate jurisdictions surveyed for the year 2022 have corporate tax rates at or below 25 percent. [10] One hundred and eighteen have tax rates above 20 percent but below or at 30 percent. The average tax rate The average tax rate is the total tax paid divided by taxable income . While marginal tax rates show the amount of tax paid on the next dollar earned, average tax rates show the overall share of income paid in taxes. among the 225 jurisdictions is 22.22 percent. [11] The United States has the 81 st highest corporate tax rate with a combined federal and state statutory rate of 25.81 percent. [12]

The 20 countries with the highest statutory corporate income tax rates span almost every region, albeit unequally. While eight of the top 20 countries are in Africa, Oceania appears only once and Europe twice. Of the remaining jurisdictions, four are in North America, and five are in South America.

Table 2. 20 Highest Statutory Corporate Income Tax Rates in the World, 2022
Country	Continent	Tax Rate
Comoros*	Africa	50%
Puerto Rico	North America	37.5%
Suriname	South America	36%
Argentina	South America	35%
Chad	Africa	35%
Colombia	South America	35%
Cuba	North America	35%
Equatorial Guinea	Africa	35%
Guinea	Africa	35%
Malta	Europe	35%
Sudan	Africa	35%
Sint Maarten (Dutch part)	North America	34.5%
American Samoa	Oceania	34%
Brazil	South America	34%
Venezuela (Bolivarian Republic of)	South America	34%
Cameroon	Africa	33%
Saint Kitts and Nevis	North America	33%
Mozambique	Africa	32%
Namibia	Africa	32%
Portugal	Europe	31.5%
*The normal corporate tax rate is 35 percent, which applies to both Comorian companies and foreign companies deriving Comorian-source income. However, public industrial and commercial enterprises or those where the state or certain public institutions are participants are subject to a corporate tax rate of 50 percent if their turnover exceeds 500 million Comorian francs; see Bloomberg Tax, “Country Guides: Comoros,” . Sources: Statutory corporate income tax rates are from OECD, “Table II.1. Statutory corporate income tax rate,” updated May 2022, ; PwC, “Worldwide Tax Summaries – Corporate Taxes,” 2022, . Bloomberg Tax, “Country Guides – Corporate Tax Rates,” accessed November 2022, ; and researched individually, see Tax Foundation, “worldwide-corporate-tax-rates,” GitHub, .

On the other end of the spectrum, the 20 countries with the lowest non-zero statutory corporate tax rates all charge rates at or below 15 percent. Nine countries have statutory rates of 10 percent, five being small European nations (Andorra, Bosnia and Herzegovina, Bulgaria, Kosovo, and Macedonia). The only two OECD members represented among the bottom 20 countries are Hungary and Ireland . Hungary reduced its corporate income tax rate from 19 to 9 percent in 2017. Ireland is known for its low 12.5 percent rate, in place since 2003.

Table 3. 20 Lowest Statutory Corporate Income Tax Rates in the World, 2022

Country	Continent	Tax Rate
Barbados	North America	5.5%
Turkmenistan	Asia	8%
Hungary	Europe	9%
Andorra	Europe	10%
Bosnia and Herzegovina	Europe	10%
Bulgaria	Europe	10%
Kosovo, Republic of	Europe	10%
Kyrgyzstan	Asia	10%
Paraguay	South America	10%
Qatar	Asia	10%
The former Yugoslav Republic of Macedonia	Europe	10%
Timor-Leste	Oceania	10%
China, Macao Special Administrative Region	Asia	12%
Republic of Moldova	Europe	12%
Cyprus	Europe	12.5%
Gibraltar	Europe	12.5%
Ireland	Europe	12.5%
Liechtenstein	Europe	12.5%
Albania	Europe	15%
Georgia	Asia	15%
Sources: OECD, “Table II.1. Statutory corporate income tax rate”; PwC, “Worldwide Tax Summaries – Corporate Taxes”; Bloomberg Tax, “Country Guides – Corporate Tax Rates”; and researched individually, see Tax Foundation, “worldwide-corporate-tax-rates.”

Of the 225 jurisdictions surveyed, 16 currently do not impose a general corporate income tax. Except for the United Arab Emirates, all these jurisdictions are small, island nations. A handful, such as the Cayman Islands and Bermuda, are well known for their lack of corporate taxes.

Table 4. Countries without General Corporate Income Tax, 2022
Country	Continent
Anguilla	North America
Bahamas	North America
Bahrain*	Asia
Belize*	North America
Bermuda	North America
British Virgin Islands	North America
Cayman Islands	North America
Guernsey	Europe
Isle of Man	Europe
Jersey	Europe
Saint Barthelemy	North America
Tokelau	Oceania
Turks and Caicos Islands	North America
United Arab Emirates*	Asia
Vanuatu	Oceania
Wallis and Futuna Islands	Oceania
Sources: OECD, “Table II.1. Statutory corporate income tax rate”; PwC, “Worldwide Tax Summaries – Corporate Taxes”; Bloomberg Tax, “Country Guides – Corporate Tax Rates.” Notes: *Bahrain has no general corporate income tax but has a targeted corporate income tax on oil companies, which can be as high as 46 percent. See Deloitte, “International Tax – Bahrain Highlights 2022,” last updated January 2022, . In Belize the corporate tax rate is 40% but as this rate applies only to the petroleum industry, the corporate tax rate in Belize has been included in this database as 0% to ensure consistency of treatment across all jurisdictions. See OECD, “Corporate Tax Statistics: Fourth Edition”, November 2022, . The United Arab Emirates is a federation of seven separate emirates. Since 1960, each emirate has the discretion to levy up to a 55 percent corporate tax rate on any business. In practice, this tax is mostly levied on foreign banks and petroleum companies. For more information on the taxation system in the United Arab Emirates, see PwC, “Worldwide Tax Summaries – Corporate income tax (CIT) rates.”

Corporate tax rates can vary significantly by region. South America has the highest average statutory corporate tax rate among all regions at 28.38 percent. Asia has the lowest average statutory corporate tax rate among all regions at 19.52 percent.

When weighted by GDP, South America has the highest average statutory corporate tax rate at 32.64 percent, while Europe has the lowest at 23.59 percent.

In general, larger and more industrialized nations tend to have higher corporate income tax rates than smaller nations. The G7, which is comprised of the seven wealthiest nations in the world, has an average statutory corporate income tax rate of 26.77 percent and a weighted average rate of 26.24 percent. OECD member states have an average statutory corporate tax rate of 23.57 percent and a rate of 25.83 percent when weighted by GDP. The BRICS [13] have an average statutory rate of 27.40 percent and a weighted average statutory corporate income tax rate of 26.06 percent.

Table 5. Average Corporate Tax Rate by Region or Group, 2022
Region	Average Rate	Average Rate Weighted by GDP	Number of Countries Covered
Africa	27.60%	27.50%	50
Asia	19.52%	24.93%	47
Europe	19.74%	23.59%	39
North America	25.33%	26.13%	24
Oceania	23.75%	29.72%	8
South America	28.38%	32.64%	12
G7	26.32%	26.22%	7
OECD	23.57%	25.83%	38
BRICS	27.40%	26.06%	5
EU27	21.16%	25.28%	27
G20	26.77%	26.24%	19
	23.37%	25.43%
Sources: Statutory corporate income tax rates are from OECD, “Table II.1. Statutory corporate income tax rate”; PwC, “Worldwide Tax Summaries – Corporate Taxes;” Bloomberg Tax, “Country Guides – Corporate Tax Rates,” and some jurisdictions researched individually, see Tax Foundation, “worldwide-corporate-tax-rates.” GDP calculations are from the U.S. Department of Agriculture, “International Macroeconomics Data Set.”

The following map illustrates 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. Oceania and North America’s corporate tax rates tend to be close to the world average.

Corporate tax rates around the world 2022

Only three tax jurisdictions impose a corporate income tax at statutory rates greater than 35 percent. [14] The following chart shows a distribution of corporate income tax rates among 225 jurisdictions in 2022. A plurality of countries (118 total) impose a rate above 20 percent and below or at 30 percent. Eighteen jurisdictions have a statutory corporate tax rate above 30 percent and below or at 35 percent. Eighty-six jurisdictions have a statutory corporate tax rate below or at 20 percent, and 204 jurisdictions have a corporate tax rate below or at 30 percent.

average corporate tax rate around 20 and 30 percent

Over the past 42 years, corporate tax rates have consistently declined on a global basis. In 1980, the unweighted average worldwide statutory tax rate was 40.11 percent. Today, the average statutory rate stands at 23.37 percent—a 42 percent reduction. [15]

Despite a general decline in corporate tax rates around the world, OECD and non-OECD countries have also become more reliant on revenue from corporate income taxes. One cause for this change has been a shift in the jurisdictions included. [16] Secondly, the negative revenue impact of the decline in corporate tax rates was generally offset by reducing or abolishing tax relief policies. [17]

The weighted average statutory rate has remained higher than the simple average over this period. Prior to U.S. tax reform in 2017, the United States was largely responsible for keeping the weighted average higher, given its relatively high tax rate, as well as its significant contribution to global GDP. Figure 3 shows the significant impact the change in the U.S. corporate rate had on the worldwide weighted average. The weighted average statutory corporate income tax rate has declined from 46.52 percent in 1980 to 25.43 percent in 2022, representing a 45 percent reduction over the 42 years surveyed.

Corporate tax rates decline but level off data on corporate tax global race to the bottom

Over time, more countries have shifted to taxing corporations at rates of 30 percent or lower, with the United States following this trend with its tax changes at the end of 2017. The largest shift occurred between 1990 and 2000, with 48 percent of countries imposing a statutory rate below 30 percent in 2000 and only 27 percent of countries in the dataset imposing a statutory rate below 30 percent in 1990. This trend continued between 2000 and 2010, with 78 percent of countries imposing a statutory rate below 30 percent in 2010. [18]

Corporate tax rates average between 20 and 25 percent average corporate tax rate and corporate tax trends

All regions saw a net decline in average statutory rates between 1980 and 2022. The average declined the most in Europe, with the 1980 average of 44.6 percent dropping to 19.74 percent—a 56 percent decline. South America has seen the smallest decline, with the average only decreasing by 23 percent, from 36.66 percent in 1980 to 28.38 percent in 2022.

South America saw two periods, 1990-2000 and 2010-2022, during which the average statutory rate increased slightly by less than one percentage point, although the average rate decreased over the full 42-year period.

Corporate tax rates have declined in every region over time

Worldwide and regional average top statutory corporate tax rates have declined over the past four decades but have leveled off in recent years. Of 225 jurisdictions around the world, only six have increased their top corporate income tax rate in 2022, a trend expected to hold steady as countries have more efficient tax types to turn towards. [19]

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The Dataset

The dataset compiled for this publication includes the 2022 statutory corporate income tax rates of 225 sovereign states and dependent territories around the world. Tax rates were researched only for jurisdictions that are among the around 250 sovereign states and dependent territories that have been assigned a country code by the International Organization for Standardization (ISO). As a result, zones or territories that are independent taxing jurisdictions but do not have their own country code are generally not included in the dataset.

In addition, the dataset includes historic statutory corporate income tax rates from 1980 to 2021. However, these years cover tax rates of fewer than 225 jurisdictions due to missing data points. Please let Tax Foundation know if you are aware of any sources for historic corporate tax rates that are not mentioned in this report, as we constantly strive to improve our datasets.

corporate tax rates data and trends research

To be able to calculate average statutory corporate income tax rates weighted by GDP, the dataset includes GDP data for 180 jurisdictions. When used to calculate average statutory corporate income tax rates, either weighted by GDP or unweighted, only these 180 jurisdictions are included (to ensure the comparability of the unweighted and weighted averages).

Definition of Selected Corporate Income Tax Rate

The dataset captures standard top statutory corporate income tax rates levied on domestic businesses. This means:

The dataset does not reflect special tax regimes, including but not limited to patent boxes, offshore regimes, or special rates for specific industries.
A number of countries levy lower rates for businesses below a certain revenue threshold. The dataset does not capture these lower rates.
A few countries levy gross revenue taxes on businesses instead of corporate income taxes. Since the tax rates of a corporate income tax and a gross revenue tax are not comparable, these countries are excluded from the dataset.
Some countries have a separate tax rate for nonresident companies. This dataset does not consider nonresident tax rates that differ from the general corporate rate.

Tax Rates for the Year 2022

For OECD countries, the statutory corporate income tax rates used are the combined corporate income tax rates provided by the OECD; see OECD, “Table II.1. Statutory corporate income tax rate,” updated May 2022, https://stats.oecd.org/index.aspx?DataSetCode=Table_II1 . The main source for non-OECD jurisdictions is the statutory rates provided by PwC, “Worldwide Tax Summaries – Corporate Taxes,” 2022, https://taxsummaries.pwc.com/ . The study also relies on Bloomberg Tax, “Country Guides – Corporate Tax Rates,” accessed in November 2022, https://www.bloomberglaw.com/product/tax/toc_view_menu/3380 . Jurisdictions that are not part of these sources were researched individually. The source for each of these jurisdictions is listed in a GitHub repository; see Tax Foundation, “worldwide-corporate-tax-rates,” GitHub, https://github.com/TaxFoundation/worldwide-corporate-tax-rates .

Tax Rates for the Years 1980-2021

Tax rates for the time frame between 1980 and 2021 are taken from a dataset compiled by the Tax Foundation over the last few years. These historic rates come from multiple sources: PwC, “Worldwide Tax Summaries – Corporate Taxes,” 2010-2019; KPMG, “Corporate Tax Rate Survey,” 1998- 2003; KPMG, “Corporate tax rates table,” 2003-2019; EY, “Worldwide Corporate Tax Guide,” 2004-2019; OECD, “Historical Table II.1 – Statutory corporate income tax rate,” 1999, http://www.oecd.org/tax/tax-policy/tax-database.htm#C_CorporateCaptial ; the University of Michigan – Ross School of Business, “World Tax Database,” https://www.bus.umich.edu/otpr/otpr/default.asp ; and numerous government websites.

Gross Domestic Product (GDP) for the years 1980-2022

GDP calculations are from the U.S. Department of Agriculture, “International Macroeconomics Data Set.” For years prior to 1999, U.S. Department of Agriculture, “International Macroeconomics Data Set – Historical Real Gross Domestic Product (GDP) and Growth Rates of GDP for Baseline Countries/Regions (in billions of 2010 dollars) 1980-2018,” Jan. 3, 2020, https://www.ers.usda.gov/data-products/international-macroeconomic-data-set/ .

For years following 1999, U.S. Department of Agriculture, “International Macroeconomics Data Set – Projected Real Gross Domestic Product (GDP) and Growth Rates of GDP for Baseline Countries/Regions (in billions of 2015 dollars) 2012-2033,” Jan. 10, 2022, https://www.ers.usda.gov/data-products/international-macroeconomic-data-set/ ; and U.S. Department of Agriculture, “International Macroeconomics Data Set – Historical Real Gross Domestic Product (GDP) and Growth Rates of GDP for Baseline Countries/Regions (in billions of 2015 dollars) 2000-2020,” Jan. 10, 2022, https://www.ers.usda.gov/data-products/international-macroeconomic-data-set/ .

Table 6. Statutory Top Corporate Tax Rates around the World, 2021
ISO3	Country	Continent	Corporate Tax Rate
AFG	Afghanistan	AS	20.00%
ALA	Aland Islands	EU	20.00%
ALB	Albania	EU	15.00%
DZA	Algeria	AF	26.00%
ASM	American Samoa	OC	34.00%
AND	Andorra	EU	10.00%
AGO	Angola	AF	25.00%
AIA	Anguilla	NO	0.00%
ATG	Antigua and Barbuda	NO	25.00%
ARG	Argentina	SA	35.00%
ARM	Armenia	AS	18.00%
ABW	Aruba	NO	25.00%
AUS	Australia	OC	30.00%
AUT	Austria	EU	25.00%
AZE	Azerbaijan	AS	20.00%
BHS	Bahamas	NO	0.00%
BHR	Bahrain	AS	0.00%
BGD	Bangladesh	AS	30.00%
BRB	Barbados	NO	5.50%
BLR	Belarus	EU	18.00%
BEL	Belgium	EU	25.00%
BLZ	Belize	NO	0.00%
BEN	Benin	AF	30.00%
BMU	Bermuda	NO	0.00%
BTN	Bhutan	AS	25.00%
BOL	Bolivia (Plurinational State of)	SA	25.00%
BES	Bonaire, Sint Eustatius and Saba	NO	25.80%
BIH	Bosnia and Herzegovina	EU	10.00%
BWA	Botswana	AF	22.00%
BRA	Brazil	SA	34.00%
VGB	British Virgin Islands	NO	0.00%
BRN	Brunei Darussalam	AS	18.50%
BGR	Bulgaria	EU	10.00%
BFA	Burkina Faso	AF	27.50%
BDI	Burundi	AF	30.00%
CPV	Cabo Verde	AF	22.00%
KHM	Cambodia	AS	20.00%
CMR	Cameroon	AF	33.00%
CAN	Canada	NO	26.21%
CYM	Cayman Islands	NO	0.00%
CAF	Central African Republic	AF	30.00%
TCD	Chad	AF	35.00%
CHL	Chile	SA	27.00%
CHN	China	AS	25.00%
HKG	China, Hong Kong Special Administrative Region	AS	16.50%
MAC	China, Macao Special Administrative Region	AS	12.00%
COL	Colombia	SA	35.00%
COM	Comoros	AF	50.00%
COG	Congo	AF	28.00%
COK	Cook Islands	OC	20.00%
CRI	Costa Rica	NO	30.00%
CIV	Cote d’Ivoire	AF	25.00%
HRV	Croatia	EU	18.00%
CUB	Cuba	NO	35.00%
CUW	Curacao	NO	22.00%
CYP	Cyprus	EU	12.50%
CZE	Czechia	EU	19.00%
COD	Democratic Republic of the Congo	AF	30.00%
DNK	Denmark	EU	22.00%
DJI	Djibouti	AF	25.00%
DMA	Dominica	NO	25.00%
DOM	Dominican Republic	NO	27.00%
ECU	Ecuador	SA	25.00%
EGY	Egypt	AF	22.50%
SLV	El Salvador	NO	30.00%
GNQ	Equatorial Guinea	AF	35.00%
ERI	Eritrea	AF	30.00%
EST	Estonia	EU	20.00%
ETH	Ethiopia	AF	30.00%
FLK	Falkland Islands (Malvinas)	SA	26.00%
FRO	Faroe Islands	EU	18.00%
FJI	Fiji	OC	20.00%
FIN	Finland	EU	20.00%
FRA	France	EU	25.83%
PYF	French Polynesia	OC	25.00%
GAB	Gabon	AF	30.00%
GMB	Gambia	AF	27.00%
GEO	Georgia	AS	15.00%
DEU	Germany	EU	29.83%
GHA	Ghana	AF	25.00%
GIB	Gibraltar	EU	12.50%
GRC	Greece	EU	22.00%
GRL	Greenland	NO	26.50%
GRD	Grenada	NO	28.00%
GUM	Guam	OC	21.00%
GTM	Guatemala	NO	25.00%
GGY	Guernsey	EU	0.00%
GIN	Guinea	AF	35.00%
GNB	Guinea-Bissau	AF	25.00%
GUY	Guyana	SA	25.00%
HTI	Haiti	NO	30.00%
HND	Honduras	NO	25.00%
HUN	Hungary	EU	9.00%
ISL	Iceland	EU	20.00%
IND	India	AS	30.00%
IDN	Indonesia	AS	22.00%
IRN	Iran (Islamic Republic of)	AS	25.00%
IRQ	Iraq	AS	15.00%
IRL	Ireland	EU	12.50%
IMN	Isle of Man	EU	0.00%
ISR	Israel	AS	23.00%
ITA	Italy	EU	27.81%
JAM	Jamaica	NO	25.00%
JPN	Japan	AS	29.74%
JEY	Jersey	EU	0.00%
JOR	Jordan	AS	20.00%
KAZ	Kazakhstan	AS	20.00%
KEN	Kenya	AF	30.00%
KIR	Kiribati	OC	30.00%
XKX	Kosovo, Republic of	EU	10.00%
KWT	Kuwait	AS	15.00%
KGZ	Kyrgyzstan	AS	10.00%
LAO	Lao People’s Democratic Republic	AS	20.00%
LVA	Latvia	EU	20.00%
LBN	Lebanon	AS	17.00%
LSO	Lesotho	AF	25.00%
LBR	Liberia	AF	25.00%
LBY	Libya	AF	20.00%
LIE	Liechtenstein	EU	12.50%
LTU	Lithuania	EU	15.00%
LUX	Luxembourg	EU	24.94%
MDG	Madagascar	AF	20.00%
MWI	Malawi	AF	30.00%
MYS	Malaysia	AS	24.00%
MDV	Maldives	AS	15.00%
MLI	Mali	AF	30.00%
MLT	Malta	EU	35.00%
MRT	Mauritania	AF	25.00%
MUS	Mauritius	AF	15.00%
MEX	Mexico	NO	30.00%
FSM	Micronesia (Federated States of)	OC	30.00%
MCO	Monaco	EU	25.00%
MNG	Mongolia	AS	25.00%
MNE	Montenegro	EU	15.00%
MSR	Montserrat	NO	30.00%
MAR	Morocco	AF	31.00%
MOZ	Mozambique	AF	32.00%
MMR	Myanmar	AS	22.00%
NAM	Namibia	AF	32.00%
NRU	Nauru	OC	25.00%
NPL	Nepal	AS	25.00%
NLD	Netherlands	EU	25.80%
NCL	New Caledonia	OC	30.00%
NZL	New Zealand	OC	28.00%
NIC	Nicaragua	NO	30.00%
NER	Niger	AF	30.00%
NGA	Nigeria	AF	30.00%
NIU	Niue	OC	30.00%
MNP	Northern Mariana Islands	OC	21.00%
NOR	Norway	EU	22.00%
OMN	Oman	AS	15.00%
PAK	Pakistan	AS	29.00%
PAN	Panama	NO	25.00%
PNG	Papua New Guinea	OC	30.00%
PRY	Paraguay	SA	10.00%
PER	Peru	SA	29.50%
PHL	Philippines	AS	25.00%
POL	Poland	EU	19.00%
PRT	Portugal	EU	31.50%
PRI	Puerto Rico	NO	37.50%
QAT	Qatar	AS	10.00%
KOR	Republic of Korea	AS	27.50%
MDA	Republic of Moldova	EU	12.00%
ROU	Romania	EU	16.00%
RUS	Russian Federation	EU	20.00%
RWA	Rwanda	AF	30.00%
BLM	Saint Barthelemy	NO	0.00%
SHN	Saint Helena	AF	25.00%
KNA	Saint Kitts and Nevis	NO	33.00%
LCA	Saint Lucia	NO	30.00%
MAF	Saint Martin (French Part)	NO	20.00%
VCT	Saint Vincent and the Grenadines	NO	30.00%
WSM	Samoa	OC	27.00%
SMR	San Marino	EU	17.00%
STP	Sao Tome and Principe	AF	25.00%
SAU	Saudi Arabia	AS	20.00%
SEN	Senegal	AF	30.00%
SRB	Serbia	EU	15.00%
SYC	Seychelles	AF	25.00%
SLE	Sierra Leone	AF	25.00%
SGP	Singapore	AS	17.00%
SXM	Sint Maarten (Dutch part)	NO	34.50%
SVK	Slovakia	EU	21.00%
SVN	Slovenia	EU	19.00%
SLB	Solomon Islands	OC	30.00%
ZAF	South Africa	AF	28.00%
SSD	South Sudan	AF	30.00%
ESP	Spain	EU	25.00%
LKA	Sri Lanka	AS	24.00%
PSE	State of Palestine	AS	15.00%
SDN	Sudan	AF	35.00%
SUR	Suriname	SA	36.00%
SWZ	Swaziland	AF	27.50%
SWE	Sweden	EU	20.60%
CHE	Switzerland	EU	19.70%
SYR	Syrian Arab Republic	AS	28.00%
TWN	Taiwan	AS	20.00%
TJK	Tajikistan	AS	18.00%
THA	Thailand	AS	20.00%
MKD	The former Yugoslav Republic of Macedonia	EU	10.00%
TLS	Timor-Leste	OC	10.00%
TGO	Togo	AF	27.00%
TKL	Tokelau	OC	0.00%
TON	Tonga	OC	25.00%
TTO	Trinidad and Tobago	NO	30.00%
TUN	Tunisia	AF	15.00%
TUR	Turkey	AS	23.00%
TKM	Turkmenistan	AS	8.00%
TCA	Turks and Caicos Islands	NO	0.00%
UGA	Uganda	AF	30.00%
UKR	Ukraine	EU	18.00%
ARE	United Arab Emirates	AS	0.00%
GBR	United Kingdom of Great Britain and Northern Ireland	EU	19.00%
TZA	United Republic of Tanzania	AF	30.00%
USA	United States of America	NO	25.81%
VIR	United States Virgin Islands	NO	23.10%
URY	Uruguay	SA	25.00%
UZB	Uzbekistan	AS	15.00%
VUT	Vanuatu	OC	0.00%
VEN	Venezuela (Bolivarian Republic of)	SA	34.00%
VNM	Viet Nam	AS	20.00%
WLF	Wallis and Futuna Islands	OC	0.00%
YEM	Yemen	AS	20.00%
ZMB	Zambia	AF	30.00%
ZWE	Zimbabwe	AF	24.72%
Notes: Continent abbreviations are as follows: “AF” is Africa, “AS” is Asia, “EU” is Europe, “OC” is Oceania, “NO” is North America, and “SA” is South America. Countries are assigned to continents based on ISO standards; see DataHub.io, “Comprehensive country codes: ISO 3166, ITU, ISO 4217 currency codes and many more,” . Sources: Statutory corporate income tax rates are from OECD, “Table II.1. Statutory corporate income tax rate,” PwC, “Worldwide Tax Summaries – Corporate Taxes;” Bloomberg Tax, “Country Guides – Corporate Tax Rates”; and some jurisdictions researched individually, see Tax Foundation, “worldwide-corporate-tax-rates.”

[1] Unless otherwise noted, calculated averages of statutory corporate income tax rates only include jurisdictions for which GDP data is available for all years between 1980 and 2022. For 2022, the dataset includes statutory corporate income tax rates of 225 jurisdictions, but GDP data is available for only 180 of these jurisdictions, reducing the number of jurisdictions included in calculated averages to 180. For years prior to 2022, the number of countries included in calculated averages varies by year due to missing corporate tax rates; that is, the 1980 average includes statutory corporate income tax rates of 73 jurisdictions, compared to 180 jurisdictions in 2022.

[2] Statutory corporate income tax rates are from OECD, “Table II.1. Statutory corporate income tax rate,” updated May 2022, https://stats.oecd.org/index.aspx?DataSetCode=Table_II1 ; PwC, “Worldwide Tax Summaries – Corporate Taxes,” 2022, https://taxsummaries.pwc.com/ . Bloomberg Tax, “Country Guides – Corporate Tax Rates,” accessed November 2022, https://www.bloomberglaw.com/product/tax/toc_view_menu/3380 ; and researched individually, see Tax Foundation, “worldwide-corporate-tax-rates,” GitHub, https://github.com/TaxFoundation/worldwide-corporate-tax-rates . GDP calculations are from the U.S. Department of Agriculture, “International Macroeconomics Data Set,” Jan. 10, 2022, https://www.ers.usda.gov/data-products/international-macroeconomic-data-set/ .

[3] Kari Jahnsen and Kyle Pomerleau, “Corporate Income Tax Rates around the World, 2017,” Tax Foundation, Sept. 7, 2017, https://taxfoundation.org/corporate-income-tax-rates-around-the-world-2017/ .

[4] The Caribbean Netherlands, Bonaire, Sint Eustatius, and Saba, are also subject to Dutch corporate income tax and therefore indirectly impacted by this tax increase.

[5] PwC, “Worldwide Tax Summaries – Austria,” 2022, https://taxsummaries.pwc.com/austria/corporate/significant-developments .

[6] HM Revenue and Customs, “Corporation Tax charge and rates from 1 April 2022 and Small Profits Rate and Marginal Relief from 1 April 2023,” Mar. 3, 2021, https://www.gov.uk/government/publications/corporation-tax-charge-and-rates-from-1-april-2022-and-small-profits-rate-and-marginal-relief-from-1-april-2023/corporation-tax-charge-and-rates-from-1-april-2022-and-small-profits-rate-and-marginal-relief-from-1-april-2023 .

[7] PwC, “Worldwide Tax Summaries – Turkey,” 2022, https://taxsummaries.pwc.com/austria/corporate/significant-developments .

[8] OECD, “Tax Policy Reforms 2022: OECD and Selected Partner Economies,” OECD Publishing, Paris, 2022, https://doi.org/10.1787/067c593d-en .

[9] PwC, “Worldwide Tax Summaries – South Africa,” 2022, https://taxsummaries.pwc.com/south-africa/corporate/taxes-on-corporate-income .

[10] As no averages are presented in this section, it covers all 225 jurisdictions for which corporate income tax rates were found in 2022 (thus including jurisdictions for which GDP data was not available).

[11] This average is lower than the average of the 180 jurisdictions because many of the jurisdictions for which no GDP data is available are small economies with low corporate income tax rates.

[12] Where applicable, similar combinations of national and subnational rates are included in this dataset. For example, the combined German corporate tax rate is 29.83 percent which includes both the federal rate of 15 percent and accounts for municipal trade taxes which range from 14 to 17 percent.

[13] BRICS is a group of countries with major emerging economies. The members of this group are Brazil, Russia, India, China, and South Africa.

[14] As no averages are presented in this chapter, it covers all 225 jurisdictions for which 2022 corporate income tax rates were found (thus including jurisdictions for which GDP data was not available).

[15] Historical data comes from multiple sources: PwC, “Worldwide Tax Summaries – Corporate Taxes,” 2010-2019; KPMG, “Corporate Tax Rate Survey,” 1998- 2003; KPMG, “Corporate tax rates table,” 2003-2019; EY, “Worldwide Corporate Tax Guide,” 2004-2019; OECD, “Historical Table II.1 – Statutory corporate income tax rate,” 1999, http://www.oecd.org/tax/tax-policy/tax-database.htm#C_CorporateCaptial ; the University of Michigan – Ross School of Business, “World Tax Database,” https://www.bus.umich.edu/otpr/otpr/default.asp ; and numerous government websites.

[16] Daniel Bunn, “Sources of Government Revenue in the OECD,” Tax Foundation, 2022, https://taxfoundation.org/publications/sources-of-government-revenue-in-the-oecd/

[17] OECD, “Tax revenue trends 1965-2020”, in Revenue Statistics 2021: The Initial Impact of COVID-19 on OECD Tax Revenues, OECD Publishing, Paris, 2021, https://read.oecd-ilibrary.org/taxation/revenue-statistics-2021_b5975909-en#page10 .

[18] This section of the report covers all 225 jurisdictions for which 2022 corporate income tax rates were found (thus including jurisdictions for which GDP data was not available).

[19] Asa Johansson, Christopher Heady, Jens Arnold, Bert Brys, and Laura Vartia, “Tax and Economic Growth,” OECD, July 11, 2008, https://www.oecd.org/tax/tax-policy/41000592.pdf ; see also, Alex Durante, “Reviewing Recent Evidence of the Effect of Taxes on Economic Growth,” Tax Foundation, May 21, 2021, https://taxfoundation.org/reviewing-recent-evidence-effect-taxes-economic-growth/ .

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What Is a Corporate Tax Rate?

Understanding corporate tax, corporate tax deductions, special considerations, advantages of a corporate tax, the bottom line.

Government & Policy

Corporate Tax: Definition, Deductions, How It Works

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.

Investopedia / Theresa Chiechi

The federal corporate tax rate in the United States is 21%, and it applies to a corporation's profits. The taxes are paid on a company's taxable income, which includes revenue minus expenses. Expenses include cost of goods sold (COGS), general and administrative (G&A) expenses , selling and marketing, research and development, depreciation, and other operating costs.

Corporate tax rates vary widely by country, with some countries considered to be tax havens due to their low rates. Corporate taxes can be lowered by various deductions , government subsidies , and tax loopholes , and so the effective corporate tax rate , the rate a corporation actually pays, is usually lower than the statutory rate; the stated rate before any deductions.

Key Takeaways

Corporate taxes are collected by the government as a source of income.
Taxes are based on taxable income after expenses have been deducted.
The corporate tax rate in the United States is currently at a flat rate of 21%. Before the Trump tax reforms of 2017, the corporate tax rate was 35%.
A company can register as an S corporation to avoid double taxation. An S corporation does not pay corporate tax as the income passes through to business owners who are taxed through their individual tax returns.

The federal corporate tax rate in the United States is currently a flat 21%, as a result of the Tax Cuts and Jobs Act (TCJA), which President Donald Trump signed into law in 2017 and which went into effect in 2018. Previously, the maximum U.S. corporate income tax rate was 35%.

U.S. corporate tax returns are generally due by the 15th day of the fourth month following the end of the corporation's tax year. Corporations may request a six-month extension to file their corporate tax returns in September. Installment payment due dates for estimated tax returns occur in the middle of April, June, September, and December. Corporate taxes are reported on Form 1120 for U.S. corporations. If a corporation has more than $10 million in assets, it must file online.

Some states impose a corporate income tax , which can run from a few percentage points in North Carolina to double digits in New Jersey.

Corporations are permitted to reduce taxable income by certain necessary and ordinary business expenditures . All current expenses required for the operation of the business are fully tax-deductible . Investments and real estate purchased with the intent of generating income for the business are also deductible.

A corporation can deduct employee salaries, health benefits, tuition reimbursement, and bonuses. In addition, a corporation can reduce its taxable income by deducting insurance premiums , travel expenses, bad debts, interest payments, sales taxes, fuel taxes, and excise taxes. Tax preparation fees, legal services, bookkeeping, and advertising costs can also be used to reduce business income.

A central issue relating to corporate taxation is the concept of double taxation . Certain corporations are taxed on the taxable income of the company. If this net income is distributed to shareholders , these individuals are forced to pay individual income taxes on the dividends received. Instead, a business may register as an S corporation and have all income pass-through to the business owners. An S corporation does not pay corporate tax, as all taxes are paid through individual tax returns.

Paying corporate taxes can be more beneficial for business owners than paying additional individual income tax. Corporate tax returns deduct medical insurance for families as well as fringe benefits, including retirement plans and tax-deferred trusts. It is easier for a corporation to deduct losses, too.

A corporation may deduct the entire amount of losses, while a sole proprietor must provide evidence regarding the intent to earn a profit before the losses can be deducted. Finally, profit earned by a corporation may be left within the corporation, allowing for tax planning and potential future tax advantages.

What Are Tax Brackets for C Corp?

A flat corporate tax rate of 21% is levied on C corporations. This has been the case since the passage of the Tax Cuts and Jobs Act, which President Donald Trump signed into law in 2017. In other words, there are no brackets any longer.

What Is the Tax Difference Between an LLC and a C Corp?

A core difference between an LLC and a C corporation lies in the way the entitites are taxed. C corporations are taxed at the corporate level at the corporate tax rate. By comparison, LLCs can be treated like pass through entities for their owners, meaning that the owners report profits or losses for the LLCs on their own personal tax returns. This circumvents double taxation, something that C corporations can not do.

What Country Has the Lowest Corporate Tax Rate?

A few countries have no corporate tax at all, including the Bahamas, Bahrain, and the United Arab Emirates. Many others have notably low corporate tax rates, including Barbados, which has a corporate tax rate of 5.5%; Turkmenistan, which has one of 8%; and Hungary, which has one of 9%.

The corporate tax rate is a tax levied on a corporation's profits, collected by a government as a source of income. It applies to a company's income, which is revenue minus expenses. In the U.S., the federal corporate tax rate is a flat rate of 21%. States may also impose a separate corporate tax on companies. Companies often seek to lower their corporate tax obligations through taking advantage of deductions, loopholes, subsidies, and other practices.

Internal Revenue Service. " Publication 542 (01/2022), Corporations ."

Congress.gov. " H.R. 1, 115th Congress ."

Internal Revenue Service. " S Corporations ."

Internal Revenue Service. " Starting or Ending a Business 3 ."

Internal Revenue Service. " Instructions for Form 1120 (2021) ."

Internal Revenue Service. " Publication 535 (2021), Business Expenses ."

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The free Corporate Tax PowerPoint Template has a green background and business illustration that makes it look very eye-catching. The template is suitable for presentations about corporate tax, corporations, distributions of earnings, interest deduction limitations, transfer pricing, taxation of shareholders, tax rates, tax returns, accounting, finance, etc. This template can be used by managers, executives, students, professors and other presenters. Its background makes it the perfect background for presentations about the types of corporate tax. If you want to make a beautiful presentation with a professional look, this is the right PPT background for you. There are more similar templates that you can find in our Business and Finance Category . You can also find similar backgrounds by browsing through labels such as business , tax , finance , green , etc.

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Corporations Help Economy but Need to Pay Fair Share of Taxes

Unless corporations and the wealthy pay their fair share of taxes, the US will struggle to address numerous pressing challenges, including rising inequity, deteriorating national infrastructure, and the urgent demands of climate change.

The 2017 Tax Cuts and Jobs Act slashed the corporate tax rate from 35% to 21%. It also gave corporations other tax breaks, such as greater expensing allowances on the cost of investment. Along with regressive cuts to personal income taxes, the legislation amounted to a giveaway to shareholders and wealthy households.

Several provisions of former President Donald Trump’s tax law will expire next year. While its corporate tax rate cut is permanent—that is, it would take an act of Congress to repeal it—policymakers are gearing up for another battle over corporate taxes. A diverse range of Democratic groups are pushing for higher corporate taxes, while Republicans prioritize defending the 2017 permanent rollback and are eyeing further tax cuts.

Much of the current discussion about corporate taxes is framed in terms of weighing the revenue gains of the corporate tax against the potential cost to the economy. Advocates of such corporate tax cuts conventionally claim that corporate taxes are distortionary, reduce economic efficiency, and discourage investment, resulting in lower wages and slower economic growth.

Standard economic theory explains why this narrative—one that is part of conventional trickledown thinking—is just wrong. Indeed, there are economic and social benefits to the corporate tax that go beyond the revenue raised.

Most fundamentally, critics of the corporate tax say it’s a tax on corporate investment or capital. But it isn’t. The US tax code allows businesses to deduct most of the cost of investment from their taxable income, directly or indirectly through depreciation and the cost of borrowed funds.

This means that it’s more accurate to think about the corporate tax as a tax on pure profits—beyond the costs of investment. The distinction is key because it means that corporate taxes don’t significantly affect business investment or employment. Indeed, with loss deduction provisions, the government shares in business risks through the corporate tax, which is important in a world in which markets are far from perfect. This risk-sharing encourages high-risk, high-return investments.

An increasingly large portion of corporate earnings comes from market power—that is, profits derived from the ability of businesses to raise prices on consumers beyond the cost of production. Academic research has shown that market power has systematically increased in the US during the last few decades due to decreasing competition.

The rise in market power has contributed to extraordinary profits exceeding what would be justified in a well-functioning competitive market. These profits come at the expense of consumers, and they inflate the financial portfolios of wealthy shareholders, which exacerbates economic inequality.

A tax on monopoly profits also discourages efforts by corporations to enhance their market power. Higher profits get translated into higher share prices—and as investors put their money into buying into the fruits of monopoly, there are less savings left over for real, productive investment. By taxing those profits, the corporate income tax contributes to a more efficient, dynamic, and less unequal economy, even apart from the revenue raised.

And the revenue can be significant. Estimates suggest that increasing the corporate tax rate to 28% would raise about $1.35 trillion over the next 10 years. To put this in perspective, the figure is more than triple what the federal government is projected to spend on child nutrition programs during the same period. It is also enough to cover the unprecedented $1.2 trillion allocated for transportation and infrastructure spending under the Bipartisan Infrastructure Law .

Lowering the corporate tax rate would be counterproductive. Some see such lowering as an attempt to attract jobs and investment from other countries. The US won’t succeed in attracting those jobs though, as other countries will respond similarly. This race to the bottom won’t increase global investment. The only winners will be corporations, while the world will suffer from increased inequality, reduced fiscal resources, and more untaxed monopoly power.

The US should show leadership, both in what we do at home and what we advocate abroad. We should raise the corporate tax rate to at least 28%. Additionally, we must push for an international agreement on a 25% global corporate minimum tax, as the Independent Commission on the Reform of International Corporate Taxation has been campaigning for. This is much higher than the 15% that the OECD has suggested—which, with “carve-outs,” is effectively more like 12% to 13% , based on data from the EU Tax Observatory.

Corporations play an important role in our society. And they benefit enormously from what governments provide them: infrastructure; a modicum of economic stability; the foundations of science and technology on which their businesses rest; and the rule of law, without which they couldn’t thrive. They need to pay their fair share.

This article does not necessarily reflect the opinion of Bloomberg Industry Group, Inc., the publisher of Bloomberg Law and Bloomberg Tax, or its owners.

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Joseph E. Stiglitz is a Nobel Laureate in economics, professor at Columbia University, and co-president of the Initiative for Policy Dialogue. He serves on the Independent Commission for the Reform of International Corporate Taxation.

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Corporate Tax in Uae

Jan 13, 2023

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On 9 December 2022, the United Arab Emirates (UAE) issued Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.The CT Law is the legislative basis for the introduction and implementation of a federal corporate tax (CT) regime which is applicable to business, profits from financial years starting on or after 1 June 2023. <br><br>The release follows the announcement made by the MoF in January 2022 about implementing a CT regime.<br>Visit: https://www.acquara.com/

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CORPORATE TAX IN UAE Tax Returns & Clarifica?ons Swipe for information www.acquara.com

Tax Returns: • Tax returns should be submitted no later than 9 months from the end of the relevant tax period. • The parent company must file a tax return with the FTA on behalf of the tax group. Financial Statements: • The FTA may request taxable persons to provide the financial statements that were used to determine their taxable income. • The MoF may issue a decision requiring certain categories of taxable persons to maintain audited or certified financial statements. Tax Period • The tax period is the financial year or part thereof for which a tax return is required to be filed. Subject to certain conditions, taxable persons can request to change their tax period. www.acquara.com

Transfer Pricing Documenta?on: • The FTA may require a taxable person to file together with their tax return a disclosure Form containing information regarding the taxable Person's transactions and agreements with its Related Parties and Connected Persons. • The master file and local file (MF and LF) must be maintained if a taxable person's transactions with its related parties and connected persons for a tax period meet certain conditions prescribed by the MoF. The MF and LF must be submitted within 30 days of a request by the FTA, or other later date stated by the FTA. Clarifica?ons: • Taxable persons may make an application for: i) concluding an advance pricing agreement; and ii) clarifying the application of the CT Law www.acquara.com

GET A FREE CONSULTATION ON CORPORATE TAX [email protected] GET A FREE CONSULTATION ON CORPORATE TAX ON CORPORATE TAX GET A FREE CONSULTATION 052 861 9285 www.acquara.com www.acquara.com

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Corporate Tax in the UAE

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Corporate tax (CT) is a form of direct tax levied on the net income or profit of corporations and other entities from their business. Corporate Tax is sometimes also referred to as “Corporate Income Tax (CIT)” or “Business Profits Tax” in other jurisdictions.

On 31 January 2022, the tax landscape of the region shifted yet again with the United Arab Emirates (UAE), Ministry of Finance (MoF) making the breakthrough announcement that a new federal corporate tax (CT) system will be implemented in the UAE, effective financial years commencing on or after 1 June 2023. Barring Bahrain, the UAE has introduced the lowest corporate income tax rate within the GCC region at a standard rate of 9%.

The UAE CT regime has been designed to incorporate best practices globally and minimize the compliance burden on businesses.

Our Analysis

In the past few years, the UAE experienced significant tax changes with a view to streamline its tax system and bring it in line with international best practices, whilst also diversifying its state revenue. Starting with the implementation of Value Added Tax (VAT) in January 2018, followed by the introduction of economic substance rules (ESR) as well as Country-by-Country Reporting (CbCR) regulations in April 2019, the UAE has been through a series of tax reforms in the last few years to align itself with international markets and diversify its revenue.

The new CT law will levy corporate income tax on business profits made by UAE businesses, over the course of a tax accounting period.

The Law and details of the regulation are expected to be issued in mid-2022, and the natural question that arises is: do businesses have sufficient information to assess the impact of this announcement?

In this alert, we share our insight based on the FAQ issued by the MoF.

The CT will be applicable for financial years starting on or after 1 June 2023.

Any company that adopts a fiscal year starting on 1 June 2023 and ending 31 May 2024 will be subject to CT starting 1 June 2023. The first tax return filing is likely to be due towards the end of 2024.

Any company that adopts a calendar year starting 1 January 2023 and ending 31 December 2023 will be subject to CT starting 1 January 2024 and filing is likely to be due towards mid-2025.

The UAE has introduced a federal tax system that is applicable to all businesses and commercial activities operating within the seven emirates. However, there are certain exceptions:

Businesses operating in the extraction of natural resources. These will continue to be subject to the tax decrees issued by the respective Emirate
Individuals earning income in their personal capacity (i.e. salary, investment income) as long as the income generating activity does not require a commercial license
Businesses registered in Free Trade Zones, provided they comply with all the regulatory requirements, and that do not conduct business with Mainland UAE

It is interesting to note that the foreign Banking sector, which has been operating under the Emirate level Bank tax decree will now be subject to the UAE Federal Tax Law. The impact of CT on the Emirate level banking tax decree will be communicated in due course. This will be a significant shift for both branches of foreign Banks, that will need to switch to the new Law and for local banks who similar to other businesses will now be subject to corporate tax.

The announced UAE CT regime introduces a tier system with 3 rates:

All annual taxable profits that fall under AED 375,000 shall be subject to zero rate.
All annual taxable profits above AED 375,000 shall be subject to 9% rate.
ALL MNEs that fall under the scope of Pillar 2 of the BEPS 2.0 framework (i.e. consolidated global revenues in excess of AED 3.15 billion) shall be subject to different rates as per OECD Base Erosion and Profit-Sharing rules.

Taxable profits are the accounting profits subject to certain adjustments.

The following income shall be in general exempt from income Tax:

Dividend income earned by UAE company from its qualifying shareholdings (to be defined in the law)
Capital gains
Profits from group reorganization
Profits from Intra-group transactions

There will be no UAE withholding tax on domestic and cross-border payments.

Considering the exempt income scheme it can be anticipated that the Law shall include a participation exemption or similar principles commonly seen in international markets and businesses would need to evaluate if they will be able to meet the prescribed conditions (if any) to avail the exempt income scheme.

The UAE intends to honor its commitment to businesses registered in Free Trade Zones to the extent that such businesses do not conduct business with mainland shall be subject to zero percent tax (or be exempt as the case may be) until the end of the holiday period. All free zones have to file an annual CT return.

Businesses with presence in both Mainland UAE and Free Trade Zones as well as those operating under the dual license scheme should consider the impact on their operating model.

The OECD Transfer Pricing Rules shall now be applicable in the UAE. All companies have to comply with the Transfer Pricing rules and documentation requirements. These transfer pricing rules will now become mandatory and may also be applicable to domestic transactions.

While intercompany sales and financing services are common practice amongst UAE groups, previously remuneration for these activities has not been on the forefront given the transactions would likely be eliminated upon financial consolidation.

This is a game changer as intercompany transactions would need to be undertaken at arm’s length and generally should be supported by appropriate documentation. Businesses would need to evaluate their current arrangements and assess the impact on both cross-border as well as domestic transactions.

Accumulated taxable losses shall be allowed to offset future taxable profits.

Tax grouping and group relief provisions are allowed. UAE Groups should be able to file consolidated tax returns. Offsetting tax losses among groups might be allowed.

Taxable entities will be allowed to take as a credit against its annual tax liability the foreign corporate tax paid on UAE taxable income.

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The UAE corporate tax law

The UAE published its corporate tax law on 9 December 2022, fundamentally changing the tax landscape for businesses – including free zone businesses – in the UAE. Key findings from our review of the law and other legislation include:

≤AED375,000 or qualifying income of a free zone person – 0%
>AED 375,000 or non-qualifying income of a free zone person – 9%

Taxable persons and base

Juridical persons incorporated in the UAE (including free zones) or incorporated overseas but managed and control from UAE
Natural persons conducting business in the UAE
Branches of juridical or natural persons
With a permanent establishment (PE) in the UAE
Who derives UAE income
With a nexus in the UAE
Tax base of resident persons – income earned inside and outside the UAE
Tax base of non-resident persons – income attributable to PE or nexus in the UAE or any other UAE income
Non-resident persons with a fixed or permanent place from where business is conducted
A business conducted by a third person on behalf of a non-resident person
A business related to the nexus in the UAE
Note: A permanent place used for storing goods, merchandising or preparatory or ancillary activity to the main business is not a PE

Exempt income

Dividends and profit distributions received from a resident juridical person
Participation interest is ≥ 5% AND
The taxable person has held (or intends to hold) the interest for a minimum continuous period of 12 months AND
The juridical person is subject to a corporate tax ≥9% where the taxable person is resident AND
≤50% of the participating or ownership interest would have been exempt from corporate tax if it was held directly by the taxable person
Resident persons can elect to exclude a foreign PE’s income and expenditure if the PE is subject to CT ≥9% in the foreign jurisdiction

Business restructuring relief

Transfers of assets or liabilities between two taxable persons (resident or non-resident juridical persons) within the same qualifying group who are part of a 75% ownership structure. If a transferred asset is disposed outside of the qualifying group or the taxable persons leave the qualifying group within two years, the transfer will be treated as having taken place at market, not book, value
Transfers of a business in return for shares for genuine commercial reasons. A subsequent disposal of the shares to a third person outside of the qualifying group within two years will be treated as taking place at market, not book, value
All persons are juridical and have the same financial year end AND
The parent owns – directly or indirectly – ≥95% of shares, voting rights or net assets AND
Neither the parent nor the subsidiary are exempt or qualifying free zone persons
Tax groups are treated as a single taxable person
Parents and subsidiaries are jointly and severally liable for the tax payable by the group.
There are conditions under which subsidiaries can enter or leave groups and controlling the offset of tax losses between group members on entry or exit

Tax payable

Corporate tax payable is net of withholding tax credits, foreign tax credits or any other credit, expressed in UAE dirhams
Non-resident persons are subject to a withholding tax of 0% on the gross amount of UAE-sourced income not attributable to the person’s PE
Withholding tax credit in excess of the tax payable amount will be refunded
Foreign tax credits will be the lower of the tax credit or tax payable

Other provisions

The law applies to tax periods starting on or after 1 June 2023
The law does not override international agreements

Violations and penalties

The FTA will issue rules on tax assessments and penalties for non-compliance

Exempt persons

Government entities or entities controlled by the government (excluding income from business activity)
Persons engaged in an extractive business or a non-extractive natural resource business (subject to emirate-specific tax) – excluding income from business activities >5% of total revenue
Qualifying public benefit entities set up for religious, charitable or scientific purposes
Qualifying (regulated) investment funds traded widely or on the stock exchange
Pension and social security funds

Taxable free zone persons

Maintains adequate substance
Derives qualifying income
Elected not to be subject to corporate tax (Exemption from CT (0%) is limited to 50 years)

Taxable income

Accounting income reported in stand-alone financials prepared under UAE accounting standards, adjusted for gains/losses, tax reliefs & deductions, prices charged between related parties, losses, exemptions and incentives
Small business relief – Taxable resident persons can decide not to receive income subject to CT if revenue for the current and preceding tax periods is <AED375,000

Deductible expenditures

Revenue expenditure exclusively for business purposes (excluding donations, fines, bribes, dividend or profit distributions and taxes) is deductible from income.
Tax deductible interest expense is capped at 30% of earnings before interest, tax, depreciation and amortisation (EBITDA). Unrelieved interest expense can be carried forward and offset against future interest income for up to 10 tax periods.
Deductible business entertaining expenditure is capped at 50% of the expense incurred.
Payments to related parties are deductible, if business related and at market value

Related party transactions

Transactions between related parties must be undertaken at market value – which must be determined by applying one or more of the prescribed transfer pricing methodologies taking into account contractual terms, functions performed, assets employed, risks undertaken and business strategy
The Federal Tax Authority (FTA) can amend a taxpayer’s income if it determines that prices are below market value
Parties can be related through ownership, control, influence, birth or marriage

Loss relief

Taxable persons can offset a loss against income of a subsequent tax period, capped at 75% from the date that the person was subject to corporate tax
Tax losses can be transferred between two resident juridical persons who are subject to corporate tax at the main rate with the same financial year-end and who are members of a 75% ownership structure
Tax losses can be carried forward to a subsequent tax period provided the taxable person is under the common ownership (minimum 50%) or the taxable person is conducting the same or similar business following a major (more than 50%) change in ownership

Tax payments and refunds

Taxable persons must pay due corporate tax within nine months of the end of the relevant tax period
Taxable persons can apply for refunds of excess withholding tax credits or overpaid corporate tax

Anti-abuse rules

The FTA can disregard any tax advantage gained by taxable persons who enter into a transaction or arrangement to avoid tax

Tax registration and deregistration

The FTA will stipulate the conditions under which a person can register or deregister for corporate tax

Tax filings and rulings

Taxable person must file a tax return within nine months of the end of the relevant tax period
Tax periods are the 12-month period (or part) for which the financial statements have been prepared. Taxable persons can apply to change their tax period
Parent companies must file tax returns on behalf of groups
The FTA can request persons to file financial statements and report transactions with related parties to determine tax liabilities
The FTA can ask taxable persons to submit transfer pricing master and local files within 30 days (or any other timeframe)
Taxable persons must maintain books and records for seven years from the end of the relevant tax period
Taxable persons can apply for a ruling on the law’s application or agree an advance pricing agreement

Transitional rules

The opening period balances of the first taxable period will be the closing period balances for the period before the introduction of the law, adjusted for the arm’s length principle

This summary is based on a review of the UAE’s corporate tax law published by the UAE’s Federal Tax Authority and other publications. Several provisions within the law will be ratified by ministerial decisions or tax authority rulings. Please contact your adviser for specific tax advice.

Naveed Jeddy

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How to improve your company’s tax accounting process.

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Marc Blythe, president of Blythe Global Advisors . Expert resources to help businesses meet accounting & financial reporting requirements.

Effective tax accounting is a complex and high-stakes function. The accuracy of tax provisions is critical to financial reporting, yet vulnerabilities exist due to the reliance on spreadsheets and the dynamic nature of tax regulations. A deep understanding of both tax law and business operations is essential for navigating a constantly evolving landscape. The subjective nature of tax accounting, coupled with the complexity of tax software and data discrepancies, introduces significant risks. To mitigate these challenges, organizations must prioritize data integrity, invest in skilled tax professionals and implement robust control mechanisms.

Key Mistakes For Corporate Tax Leaders To Avoid

Corporate tax management is fraught with challenges and complexities that can lead to significant consequences if not handled properly. From a lack of technical expertise in tax accounting to ineffective project management, corporate tax leaders must navigate a multitude of potential shortcomings.

Most companies use some combination of internal and external resources to manage various income and other tax reporting activities and responsibilities. These functions are usually coordinated by a tax leader within the organization or other responsible party, such as the controller or CFO.

Due to constant changes in tax law and its inherent complexity, we often see errors in tax reporting related to financial statement preparation. Here are the top mistakes corporate tax leaders should avoid in maintaining compliance, accuracy and financial integrity. By understanding these common errors, businesses can implement strategies to mitigate risks and enhance their tax management practices.

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Today’s nyt mini crossword clues and answers for friday, august 16, thursday, august 15. russia’s war on ukraine: news and information from ukraine, 1. lack of tax accounting expertise.

Companies must accurately account for income and other taxes in their financial statements, a distinct requirement from preparing income tax returns. Tax provisions, estimates set aside to cover future tax liabilities, are a crucial component of financial reporting. Calculated using generally accepted accounting principles (GAAP)-based information, these provisions are based on taxable income, expenses and applicable tax laws. Given the timing differences and specialized expertise needed for tax accounting, discrepancies between tax accounting and tax returns are common.

A business whose tax professionals lack tax accounting expertise may face several serious issues:

Lack Of Auditor And Investor Confidence

If the company’s external auditors or tax regulating authority identify errors, it can trigger a restatement or recast of the financial statements. This scrutiny undermines stakeholder confidence in the company's financial reports.

Correcting mistakes made by an underqualified tax team can be incredibly expensive.

2. Spreadsheet Errors

Most accounting departments use a variety of Excel spreadsheets to calculate tax accounting entries. A critical mistake in corporate tax management is relying solely on these spreadsheets for calculations without a second review by tax experts or specialized software. These spreadsheets often include complex formulas with a tremendous amount of financial data without adequate controls over the integrity of data inputs and calculations. The possibility of one figure or calculation being wrong is high—even experienced professionals can miss these errors, making this area particularly prone to mistakes.

Errors in tax provision spreadsheets can precipitate severe financial and reputational consequences. Inaccurate calculations can necessitate costly and time-consuming financial restatements, significantly eroding investor confidence and market valuation. Such errors can also trigger heightened scrutiny from regulatory bodies, resulting in potential penalties and fines. Furthermore, the complex interplay of tax jurisdictions, tax rates and accounting standards within tax provision spreadsheets amplifies the risk of human error and system glitches. These factors collectively underscore the critical importance of robust error prevention and detection mechanisms to safeguard financial integrity and mitigate potential liabilities.

To mitigate risks, it’s crucial to have adequate spreadsheet controls, including a robust review process. Every spreadsheet should be reviewed by a second person who understands the spreadsheet and can identify potential errors. Additionally, consider having in-house tax leaders or an outside firm prepare the provision and another firm review it to provide an extra layer of oversight and assurance.

3. Poor Project Management

Often, errors are the result of poor project management. Effective project management is crucial for accurate and timely tax accounting calculations. Unfortunately, companies often overlook this aspect, leading to rushed and incorrect work.

Many companies fail to understand the full scope of work required for accurate tax accounting calculations. This underestimation can also lead to last-minute scrambling, leaving outside auditors with incomplete or incorrect information. Here are some examples/considerations:

• Plan early in the financial reporting process.

• Identify all tasks, manage time effectively, and understand the amount of work required.

• Consider the impact of changes in the business that have occurred, such as business acquisitions/dispositions and geographic changes.

• Understand and consider changes in tax rules and regulations.

4. Disconnected From The Business

We see tax accountants who are unfortunately disconnected from the business. They are too often buried in detail, which may lead to making false assumptions in tax accounting calculations.

Errors or omissions in tax accounting frequently lead to finger-pointing among team members. This can be particularly problematic with valuation allowances and nexus determinations, where surprises can arise due to false assumptions or miscommunication.

To avoid these pitfalls, tax accountants need to be connected to the business’s current state. This involves regular communication with the CFO or controller to understand what’s happening in the business. Tax accountants should ask open-ended questions about the business's performance, any significant changes during the year and specific details like sales tax obligations in multiple states due to internet sales. They should also review company press releases of U.S. Securities and Exchange Commission (SEC) filings if the company is public and understand the states and other geographies where the company operates and employs people.

By realizing how common these mistakes are and correcting them before problems arise, companies can better prevent costly errors, maintain auditor and investor confidence and ensure accurate and compliant financial reporting. Staying proactive and informed, and leveraging people and organizations with the right expertise, will help corporate tax leaders steer their organizations through the intricate landscape of tax regulations effectively.

The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.

Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?

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Corporate tax is imposed in the United States at the federal, most state, and some local levels on the income of entities treated for tax purposes as corporations. Since January 1, 2018, the nominal federal corporate tax rate in the United States of America is a flat 21% following the passage of the Tax Cuts and Jobs Act of 2017.
Corporate Taxation Presentation
Corporate Tax Casebook Update (2018) Tax Rate Comparison Chart (Fall 2015) 2015 Joint Committee Report on Business Taxation; Tax Treatment of Corporate Debt and Equity (JCX-45-16) Spring 2019 Powerpoint Presentations. Note: These are Fall 2016 files, to be updated by Professor Streng during Spring Semester, 2019. PDF : HTML: Chapter 1 (pdf) - 2019:
Free Corporate Tax PowerPoint Template
The free Corporate Tax PowerPoint Template has a green background and business illustration that makes it look very eye-catching. The template is suitable for presentations about corporate tax, corporations, distributions of earnings, interest deduction limitations, transfer pricing, taxation of shareholders, tax rates, tax returns, accounting, finance, etc.
Presentations
ICAI Adu Dhabi - MMJS TP Presentation. Transfer Pricing - Practical Considerations. Date : Apr 29, 2023: Download: UAE Corporate Tax. UHY James - Corporate Tax in UAE. Date : Dec 27, 2022: Download: Corporate Tax Seminar. Computation of UAE Corporate Tax (CT) Liability. Date : Dec 27, 2022: Download: Joint Event ICAI (AUH), ISC and IPEF - 27 ...
Corporate tax
Follow. Corporate tax is collected from companies incorporated in India and is levied on their global income if the company's control and management is in India. Corporate tax planning aims to minimize current and future tax liabilities through comparing opportunities to defer or reduce taxes, as corporate tax is a significant overhead cost ...
Corporations Help Economy but Need to Pay Fair Share of Taxes
While its corporate tax rate cut is permanent—that is, it would take an act of Congress to repeal it—policymakers are gearing up for another battle over corporate taxes. A diverse range of Democratic groups are pushing for higher corporate taxes, while Republicans prioritize defending the 2017 permanent rollback and are eyeing further tax cuts.
Corporate tax
The UAE will introduce a federal corporate tax on business profits starting June 1, 2023. The tax will be 0% for taxable income up to AED 375,000 and 9% for income above that threshold. Large multinationals may face different rates. The tax applies to corporate profits but not personal income or salaries.
PDF Introduction of corporate tax in the UAE
UAE branches of foreign banks are currently subject to 20% tax under the respective banking decrees of each Emirate. The MoF CT FAQs confirm that the UAE CT will apply to all UAE businesses, except for the extraction of natural resources. Therefore, banks will be subject to the UAE CT.
PDF Federal Corporate Tax
The UAE announces the introduction of a federal corporate tax on business profits. On 31 January 2022, the UAE Ministry of Finance (MoF) announced the introduction of a federal corporate tax (CT) in the UAE that will be effective for financial years starting on or after 1 June 2023. The UAE CT regime will be based on international best ...
PPT
Corporate Tax in Uae. On 9 December 2022, the United Arab Emirates (UAE) issued Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.The CT Law is the legislative basis for the introduction and implementation of a federal corporate tax (CT) regime which is applicable to business, profits from financial years starting ...
PDF UAE Federal Corporate Tax Flyer
On 9 December 2022, the UAE Ministry of Finance (MoF) issued Decree-Law No. 47 of 2022 on the Federal Corporate Tax ('CT') CT is applicable for financial years commencing on or after 1 June 2023. UAE CT is applicable across all Emirates and to all business and commercial activities. UAE CT is not applicable on employment income or other non ...
Corporate Tax in the UAE
Corporate Tax in the UAE. Corporate tax (CT) is a form of direct tax levied on the net income or profit of corporations and other entities from their business. Corporate Tax is sometimes also referred to as "Corporate Income Tax (CIT)" or "Business Profits Tax" in other jurisdictions. On 31 January 2022, the tax landscape of the region ...
Lesson 5 Income Tax On Corporation
Lesson-5-Income-Tax-on-Corporation.ppt - Free download as Powerpoint Presentation (.ppt), PDF File (.pdf), Text File (.txt) or view presentation slides online. The document discusses various types of corporations and taxation rules for corporations in the Philippines. It defines what constitutes a corporation for tax purposes, outlines classifications of corporate taxpayers including domestic ...
Corporate Tax in UAE.pptx
4. CORPORATE TAX IN UAE: AN OVERVIEW The United Arab Emirates, which is abode to the significant corporate gateway of Dubai, will continue to have one of the lowest corporate tax rates in the world. This proposal stems from the UAE's intention to comply with international tax rules, reflecting similar efforts in other Gulf nations, while reducing regulatory burdens for UAE firms and ...
The UAE corporate tax law
The taxable person has held (or intends to hold) the interest for a minimum continuous period of 12 months AND. The juridical person is subject to a corporate tax ≥9% where the taxable person is resident AND. ≤50% of the participating or ownership interest would have been exempt from corporate tax if it was held directly by the taxable person.
PDF UAE Corporate Tax Law summary
UAE Corporate Tax Law summary. 1. The UAE releases corporate tax legislation. On 9 December 2022, the UAE released the Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses (hereinafter referred to as the 'CT Law'). The CT Law was published in the Official Gazette on 10 October 2022 and became effective on 25 ...
The coming multifront battle over the corporate tax rate
The 2017 Republican tax overhaul lowered the corporate tax rate from 35% to 21% — and unlike the changes made to individual and estate tax, that cut is permanent in law.
How To Improve Your Company's Tax Accounting Process
1. Lack Of Tax Accounting Expertise. Companies must accurately account for income and other taxes in their financial statements, a distinct requirement from preparing income tax returns.
NAR settlement set to hit real estate agents this week: Here's how they
Realtors across the country are bracing for a seismic shift in the way they do business. Starting August 17, new rules will roll out that overhaul the way Realtors get paid to help people buy and ...