Economic Growth

Which countries have the lowest corporation tax?

A businessman avoids puddles at the International Financial Services Centre - the business district of Dublin May 27, 2007. Picture was rotated 180 degrees. REUTERS/Luke MacGregor (IRELAND) - RTR1QETN

Image: REUTERS/Luke MacGregor

Joe Myers
Writer, Forum Agenda
Share:
Our Impact
What's the World Economic Forum doing to accelerate action on Economic Growth?
The Big Picture
Explore and monitor how Economic Progress is affecting economies, industries and global issues
A hand holding a looking glass by a lake
Crowdsource Innovation
Get involved with our crowdsourced digital platform to deliver impact at scale
Stay up to date:

Economic Progress

George Osborne, the UK's finance minister, says he plans to dramatically cut the country’s corporation tax. In an interview with the Financial Times, he said the rate would be cut to below 15% from its current level of 20%.

Such a move would result in the UK having one of the lowest corporate tax rates of any OECD economy – with only Ireland’s 12.5% likely to remain lower. The latest plan goes further than March’s announcement that corporation tax would fall to 17% by 2020.

Osborne said the cut would build “a super-competitive economy” and make clear that the UK is still “open for business.” Although the UK Treasury confirmed the plans, it is not yet clear when the cut will be implemented.

Where are corporate tax rates lowest?

Corporate tax is levied against a company’s profits earned during a certain period. In many countries it is imposed at a national level, however it can also be imposed at a state or local level.

The following chart shows the lowest corporate tax rates in OECD economies. It is based on their own calculations combining national and local rates, allowing for any surtax on the national rate as a result of a local tax. In the case of the US, a weighted average of state rates is used.

Ireland has the lowest rate, at 12.5%. The low tax level has seen Ireland become a popular location for start-ups and major multinationals, from Facebook to Pfizer.

The UK’s proposed rate of below 15% would see it take second place in the list, just ahead of Latvia. The eastern European nation was invited to join the OECD in May 2016, and has a corporate tax rate of 15%.

Other nations with a rate below 20% include Poland, the Czech Republic and Slovenia.

At the other end of the scale, the United States, France and Belgium have the highest rates among OECD economies, all in excess of 30%.

Loading...
Don't miss any update on this topic

Create a free account and access your personalized content collection with our latest publications and analyses.

Sign up for free

License and Republishing

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

Share:
World Economic Forum logo
Global Agenda

The Agenda Weekly

A weekly update of the most important issues driving the global agenda

Subscribe today

You can unsubscribe at any time using the link in our emails. For more details, review our privacy policy.

Here’s how reducing malaria can add $16 billion to Africa’s GDP every year

Michelle Meineke

June 20, 2024

About Us

Events

Media

Partners & Members

  • Join Us

Language Editions

Privacy Policy & Terms of Service

© 2024 World Economic Forum