The US corporate tax rate compared to other countries reveals a landscape of varying tax policies impacting global business investment decisions. COMPARE.EDU.VN offers a comprehensive comparison of corporate tax rates worldwide, helping businesses and individuals understand the global tax environment and make informed decisions. Explore detailed country-by-country analysis, effective tax rates, and the implications of global minimum tax for optimal tax planning and strategic financial management decisions.
1. Introduction to Global Corporate Tax Rates
In 1980, the global average corporate tax rate stood at a substantial 40.18 percent, or 46.66 percent when weighted by GDP, according to data analyzed by compare.edu.vn. Recognizing the adverse effects of elevated corporate tax rates on business investment decisions, countries have gradually lowered their rates. By 2024, the average rate decreased significantly to 23.51 percent (25.67 percent when weighted by GDP) across 181 tax jurisdictions. When factoring in the global minimum tax, the 2024 average adjusts to 23.62 percent, or 25.7 percent when weighted by GDP.
Reductions have been observed across all major global regions, including prominent economies. The Tax Cuts and Jobs Act of 2017 in the United States shifted the country’s statutory corporate income tax rate from one of the highest globally to a more moderate position.
Asia and Europe generally exhibit lower corporate income tax rates compared to other regions, while numerous developing nations maintain rates exceeding the global average. As of today, most countries have corporate tax rates set below 30 percent.
2. Significant Corporate Tax Rate Changes in 2024
In 2024, thirteen countries implemented changes to their statutory corporate income tax rates. Eight countries increased their top corporate rates, including Morocco (from 32 percent to 33 percent), Belarus (from 20 percent to 25 percent), Czechia (from 19 percent to 21 percent), Gibraltar (from 12.5 percent to 15 percent), Iceland (from 20 percent to 21 percent), Slovenia (from 19 percent to 22 percent), Barbados (from 5.5 percent to 9 percent), and Fiji (from 20 percent to 25 percent).
Conversely, five countries spanning three continents—Cabo Verde, Rwanda, Swaziland, the Syrian Arab Republic, and Austria—decreased their corporate tax rates in 2024. The reductions ranged from a modest 1 percentage point in Austria and Cabo Verde to 3 percentage points in the Syrian Arab Republic.
Moreover, in 2024, five countries with statutory corporate tax rates below 15 percent—Bulgaria, Hungary, Ireland, Lichtenstein, and Barbados—implemented the Qualified Domestic Minimum Top-up Tax (QDMTT) under the Pillar Two rules, effectively raising their corporate tax rate for large companies to 15 percent.
2.1. Table 1: Notable Corporate Income Tax Rate Changes in 2024
| Country | 2023 Tax Rate | 2024 Tax Rate | 2024 Tax Rate Accounting for Global Minimum Tax | Change from 2023 to 2024 |
|---|---|---|---|---|
| Africa | ||||
| Cabo Verde | 22.44% | 21.42% | 21.42% | -1.02 ppt |
| Morocco | 32% | 33% | 33% | +1 ppt |
| Rwanda | 30% | 28% | 28% | -2 ppt |
| Swaziland | 27.5% | 25% | 25% | -2.5 ppt |
| Asia | ||||
| Syrian Arab Republic | 28% | 25% | 25% | -3 ppt |
| Europe | ||||
| Austria | 24% | 23% | 23% | -1 ppt |
| Belarus | 20% | 25% | 25% | +5 ppt |
| Bulgaria | 10% | 10% | 15% | 0 ppt/+5 ppt |
| Czechia | 19% | 21% | 21% | +2 ppt |
| Gibraltar | 12.5% | 15% | 15% | +2.5 ppt |
| Hungary | 9% | 9% | 15% | 0 ppt/+6 ppt |
| Iceland | 20% | 21% | 21% | +1 ppt |
| Ireland | 12.5% | 12.5% | 15% | 0 ppt/+2.5 ppt |
| Liechtenstein | 12.5% | 12.5% | 15% | 0 ppt/+2.5 ppt |
| Slovenia | 19% | 22% | 22% | +3 ppt |
| North America | ||||
| Barbados | 5.50% | 9% | 15% | +3.5 ppt /+9.5 ppt |
| Oceania | ||||
| Fiji | 20 | 25 | 25 | +5 ppt |
Source: OECD, “Corporate income tax statutory and targeted small business rates,” updated September 2024; PwC, “Worldwide Tax Summaries – Corporate Taxes,” 2024; Bloomberg Tax, “Country Guides – Corporate Tax Rates,” accessed November 2024; and researched individually, see Tax Foundation, “worldwide-corporate-tax-rates,” GitHub.
3. Scheduled Corporate Tax Rate Changes in the OECD and Selected Jurisdictions
Among OECD countries, Estonia and Lithuania have declared forthcoming changes to their statutory corporate income tax rates in 2025. In addition, Morocco and Slovenia have enacted amendments to their statutory corporate income taxes, set to unfold over the next few years.
4. The Impact of Global Minimum Tax
Over 140 countries have committed to the OECD’s 2021 global tax agreement, establishing a 15 percent global minimum tax. Known as Pillar Two, it comprises three main components:
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Qualified Domestic Minimum Top-up Tax (QDMTT): Allows countries to tax profits below the 15 percent minimum effective rate.
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Income Inclusion Rule (IIR): Determines when foreign income should be included in the parent company’s taxable income. If the effective tax rate is below 15 percent, additional taxes are due in the home jurisdiction.
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Undertaxed Profits Rule (UTPR): Permits a country to increase taxes on a company if a related entity in another jurisdiction is taxed below the 15 percent effective rate. Taxable profit is divided based on tangible assets and employees’ location.
These regulations are motivating countries to implement corporate income taxes for the first time. The United Arab Emirates, which introduced a 9 percent federal corporate income tax in 2023, will impose a 15 percent minimum top-up tax on large multinational companies from January 1, 2025.
Bermuda has also introduced a 15 percent corporate income tax. Although a tax exemption was extended to Bermuda companies until March 2035, a 15 percent corporate income tax on multinational companies with annual revenue of EUR 750 million or more will take effect in 2025.
Guernsey, Jersey, and the Isle of Man have agreed on a joint internal approach to Pillar Two starting in 2025.
The EU adopted its own Pillar Two directive, mandating Member States with over 12 in-scope multinational groups to implement the IIR by December 31, 2023, and the UTPR by December 31, 2024. Member States with fewer than 12 in-scope multinational groups can defer implementation for six years under Article 50 of the Directive.
As of 2024, 28 countries have adopted both the IIR and the QDMTT, three countries—Cyprus, Japan, and the Republic of Korea—have adopted only the IIR, and five countries—Barbados, Gibraltar, Slovakia, Switzerland, and Zimbabwe—have only adopted the QDMTT. Thirty countries plan to adopt the UTPR rules by the end of 2025, and over 47 countries are set to adopt at least the QDMTT rules by 2026.
While countries are implementing the global minimum tax, they are also considering qualified refundable tax credit incentives for multinational companies to remain competitive for investment.
5. Highest and Lowest Corporate Tax Rates Worldwide
In 2024, 143 of 225 surveyed jurisdictions had corporate tax rates at or below 25 percent. 125 had rates above 20 percent but at or below 30 percent. The average rate among the 225 jurisdictions is 23.51 percent. The United States ranks 82nd-highest, with a combined federal and state statutory rate of 25.63 percent.
The 20 countries with the highest statutory corporate income tax rates span almost every region. Africa accounts for eight, Oceania for one, and Europe for two. The remaining jurisdictions include four in North America and five in South America.
5.1. Table 2. 20 Highest Statutory Corporate Income Tax Rates in the World, 2024
| 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% |
| 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% |
| Morocco | Africa | 32% |
| Mozambique | Africa | 32% |
| Namibia | Africa | 32% |
| Portugal | Europe | 31.5% |
*The normal corporate tax rate is 35 percent, applicable to both Comorian and foreign companies. However, public industrial and commercial enterprises, or those with state or public institution participation, are subject to a 50 percent rate if their turnover exceeds 500 million Comorian francs.
Source: OECD, “Corporate income tax statutory and targeted small business rates,” updated September 2024; PwC, “Worldwide Tax Summaries – Corporate Taxes,” 2024; Bloomberg Tax, “Country Guides – Corporate Tax Rates,” accessed November 2024; and researched individually, see Tax Foundation, “worldwide-corporate-tax-rates,” GitHub.
Conversely, among the 20 countries with the lowest non-zero statutory corporate tax rates, 18 impose rates at or below 15 percent. Nine countries have statutory rates of 10 percent, five of which are small European nations (Andorra, Bosnia and Herzegovina, Bulgaria, Kosovo, and Macedonia). Hungary and Ireland are the only OECD members represented among the bottom 20 countries. Hungary reduced its corporate income tax rate from 19 to 9 percent in 2017, while Ireland has maintained its 12.5 percent rate since 2003. In 2024, five of the 18 countries with corporate tax rates below 15 percent—Bulgaria, Hungary, Ireland, Liechtenstein, and Barbados—have implemented the QDMTT from the Pillar Two rules, raising their effective corporate tax rate to 15 percent.
5.2. Table 3. 20 Lowest Statutory Corporate Income Tax Rates in the World, 2024
| Country | Continent | Tax Rate | Tax Rate Accounting for Global Minimum Tax |
|---|---|---|---|
| Turkmenistan | Asia | 8% | 8% |
| Barbados | North America | 9% | 15% |
| Hungary | Europe | 9% | 15% |
| United Arab Emirates | Asia | 9% | 9% |
| Andorra | Europe | 10% | 10% |
| Bosnia and Herzegovina | Europe | 10% | 10% |
| Bulgaria | Europe | 10% | 15% |
| Republic of Kosovo | Europe | 10% | 10% |
| Kyrgyzstan | Asia | 10% | 10% |
| Paraguay | South America | 10% | 10% |
| Qatar | Asia | 10% | 10% |
| The former Yugoslav Republic of Macedonia | Europe | 10% | 10% |
| Timor-Leste | Oceania | 10% | 10% |
| China, Macao Special Administrative Region | Asia | 12% | 12% |
| Republic of Moldova | Europe | 12% | 12% |
| Cyprus | Europe | 12.5% | 12.5% |
| Ireland | Europe | 12.5% | 15% |
| Liechtenstein | Europe | 12.5% | 15% |
| Albania* | Europe | 15% | 15% |
| Georgia* | Asia | 15% | 15% |
Note: Jurisdictions with a corporate income tax rate of zero percent are excluded. Apart from Albania and Georgia, there are 12 other countries with a corporate tax rate of 15 percent not shown in this table.
Source: OECD, “Corporate income tax statutory and targeted small business rates”; 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, 15 currently do not impose a general corporate income tax, consisting primarily of small, island nations, such as the Cayman Islands and Bermuda.
5.3. Table 4. Countries Without General Corporate Income Tax, 2024
| 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 |
| Vanuatu | Oceania |
| Wallis and Futuna Islands | Oceania |
Note: Bahrain has no general corporate income tax but a targeted corporate income tax on oil companies, potentially as high as 46 percent. In Belize, the corporate tax rate is 40 percent, but as this applies only to the petroleum industry, the corporate tax rate in Belize has been included in this database as 0 percent.
Source: OECD, “Corporate income tax statutory and targeted small business rates”; PwC, “Worldwide Tax Summaries – Corporate Taxes”; Bloomberg Tax, “Country Guides – Corporate Tax Rates.”
6. Regional Variations in Corporate Tax Rates
Corporate tax rates can differ significantly by region. South America holds the highest average statutory corporate tax rate at 28.38 percent, while Asia has the lowest average at 19.74 percent.
When weighted by GDP, South America’s average statutory corporate tax rate is the highest at 32.67 percent, whereas Europe’s is the lowest at 24.39 percent.
Generally, larger, more industrialized nations tend to have higher corporate income tax rates than smaller nations. The G7, comprising the seven wealthiest nations globally, has an average statutory corporate income tax rate of 27.15 percent and a weighted average of 26.63 percent. OECD member states have an average statutory corporate tax rate of 23.85 percent, or 26.12 percent when weighted by GDP. The BRICS countries have an average statutory rate of 27.20 percent and a weighted average statutory corporate income tax rate of 26.22 percent.
When accounting for the global minimum tax, there are no significant changes in the weighted averages of the regions analyzed. However, comparing unweighted averages reveals that both Europe (20.53 percent) and North America (25.84 percent) have slightly higher average rates than without the global minimum tax (20.18 percent and 25.59 percent, respectively). Additionally, the OECD average rate increases from 23.85 percent to 24.08 percent, while the European Union average rises from 21.27 percent to 21.77 percent.
6.1. Table 5. Average Corporate Tax Rate by Region or Group, 2024
| Region | Average Rate | Average Rate Accounting for Global Minimum Tax | Average Rate Weighted by GDP | Average Rate Accounting for Global Minimum Tax Weighted by GDP | Number of Countries Covered |
|---|---|---|---|---|---|
| Africa | 27.28% | 27.28% | 27.59% | 27.59% | 51 |
| Asia | 19.74% | 19.74% | 25.09% | 25.09% | 47 |
| Europe | 20.18% | 20.53% | 24.39% | 24.51% | 39 |
| North America | 25.59% | 25.84% | 25.97% | 25.97% | 24 |
| Oceania | 24.38% | 24.38% | 29.72% | 29.72% | 8 |
| South America | 28.38% | 28.38% | 32.67% | 32.67% | 12 |
| G7 | 27.15% | 27.15% | 26.63% | 26.63% | 7 |
| OECD | 23.85% | 24.08% | 26.12% | 26.16% | 38 |
| BRICS | 27.20% | 27.20% | 26.22% | 26.22% | 5 |
| European Union | 21.27% | 21.77% | 25.19% | 25.36% | 27 |
| G20 | 27.08% | 27.08% | 26.5% | 26.50% | 19 |
| World | 23.51% | 23.62% | 25.67% | 25.70% | 181 |
Note: GDP calculations are from the US Department of Agriculture, “International Macroeconomics Data Set.” Source: OECD, “Corporate income tax statutory and targeted small business rates”; 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.”
7. Distribution of Corporate Tax Rates
Only three tax jurisdictions impose a corporate income tax at statutory rates greater than 35 percent. The following chart illustrates the distribution of corporate income tax rates among 225 jurisdictions in 2024. A plurality of countries (125 total) impose a rate above 20 percent and at or below 30 percent. Seventeen jurisdictions have a statutory corporate tax rate above 30 percent and at or below 35 percent. Eighty jurisdictions have a statutory corporate tax rate at or below 20 percent, and 205 jurisdictions have a corporate tax rate at or below 30 percent.
8. Decline of Corporate Tax Rates since 1980
Over the past 44 years, corporate tax rates have consistently declined globally. In 1980, the unweighted average worldwide statutory tax rate was 40.18 percent. Today, the average statutory rate stands at 23.51 percent—a 41 percent reduction—and 23.62 percent when accounting for the global minimum tax.
Despite the general decline, OECD and non-OECD countries have become more reliant on revenue from corporate income taxes, primarily due to changes in included jurisdictions and the offsetting of negative revenue impacts by reducing or abolishing tax relief policies.
The weighted average statutory rate has remained higher than the simple average. Prior to US tax reform in 2017, the United States largely kept the weighted average higher due to its high tax rate and significant contribution to global GDP. Figure 4 illustrates the significant impact of the change in the US corporate rate on the worldwide weighted average. The weighted average statutory corporate income tax rate has declined from 46.66 percent in 1980 to 25.67 percent (25.7 percent when accounting for the global minimum tax) in 2024, representing a 45 percent reduction over the 44 years surveyed.
Over time, more countries have shifted to taxing corporations at rates of 30 percent or lower, with the United States following this trend in 2017. The largest shift occurred between 1990 and 2000, with 49 percent of countries imposing a statutory rate below 30 percent in 2000, compared to only 27 percent in 1990. This trend continued between 2000 and 2010, with 79 percent of countries imposing a statutory rate below 30 percent in 2010. Currently, 91 percent of countries impose a statutory rate below 30 percent.
All regions experienced a net decline in average statutory rates between 1980 and 2024. The average declined the most in Europe, from 44.6 percent in 1980 to 20.18 percent (20.53 percent when accounting for the global minimum tax)—a 55 percent decline. South America experienced the smallest decline, decreasing by 23 percent, from 36.66 percent in 1980 to 28.38 percent in 2024.
South America saw two periods, 1990-2000 and 2010-2024, during which the average statutory rate increased slightly by less than 0.5 percentage points, although the average rate decreased over the full 44-year period.
9. Conclusion
Worldwide and regional average top statutory corporate tax rates have declined over the past four decades due to countries adopting more efficient tax types. However, they have stabilized in recent years. Of the 225 jurisdictions globally, only eight have increased their top corporate income tax rates in 2024, while five low-tax jurisdictions raised their effective corporate tax rates by implementing the global minimum tax, a trend that might reverse as more countries implement the global minimum tax.
10. Compare All 2024 Corporate Tax Rates
10.1. Table 6. Statutory Top Corporate Tax Rates and Pillar Two Implementation Around the World, 2024
| ISO 3 | Continent | Country | Corporate Tax Rate | Tax Rate Accounting for Global Minimum Tax | Joined the Pillar Two Statement | Income Inclusion Rule (IIR) | Undertaxed Profits Rule (UTPR) | Qualified Domestic Minimum Top-up Tax (QDMTT) |
|---|---|---|---|---|---|---|---|---|
| ABW | NO | Aruba | 22% | 22% | No | No | No | No |
| AFG | AS | Afghanistan | 20% | 20% | No | No | No | No |
| AGO | AF | Angola | 25% | 25% | Yes | No | No | No |
| AIA | NO | Anguilla | 0% | 0% | No | No | No | No |
| ALA | EU | Aland Islands | 20% | 20% | No | No | No | No |
| ALB | EU | Albania | 15% | 15% | Yes | No | No | No |
| AND | EU | Andorra | 10% | 10% | No | No | No | No |
| ARE | AS | United Arab Emirates | 9% | 9% | Yes | No | No | No |
| ARG | SA | Argentina | 35% | 35% | Yes | No | No | No |
| ARM | AS | Armenia | 18% | 18% | Yes | No | No | No |
| ASM | OC | American Samoa | 34% | 34% | No | No | No | No |
| ATG | NO | Antigua and Barbuda | 25% | 25% | No | No | No | No |
| AUS | OC | Australia | 30% | 30% | Yes | Yes | No | Yes |
| AUT | EU | Austria | 23% | 23% | Yes | Yes | No | Yes |
| AZE | AS | Azerbaijan | 20% | 20% | Yes | No | No | No |
| BDI | AF | Burundi | 30% | 30% | No | No | No | No |
| BEL | EU | Belgium | 25% | 25% | Yes | Yes | No | Yes |
| BEN | AF | Benin | 30% | 30% | No | No | No | No |
| BES | NO | Bonaire, Sint Eustatius and Saba | 25.8% | 25.8% | No | No | No | No |
| BFA | AF | Burkina Faso | 27.5% | 27.5% | No | No | No | No |
| BGD | AS | Bangladesh | 27.5% | 27.5% | No | No | No | No |
| BGR | EU | Bulgaria | 10% | 15% | Yes | Yes | No | Yes |
| BHR | AS | Bahrain | 0% | 0% | Yes | No | No | No |
| BHS | NO | Bahamas | 0% | 0% | Yes | No | No | No |
| BIH | EU | Bosnia and Herzegovina | 10% | 10% | Yes | No | No | No |
| BLM | NO | Saint Barthelemy | 0% | 0% | No | No | No | No |
| BLR | EU | Belarus | 25% | 25% | No | No | No | No |
| BLZ | NO | Belize | 0% | 0% | No | No | No | No |
| BMU | NO | Bermuda | 0% | 0% | Yes | No | No | No |
| BOL | SA | Plurinational State of Bolivia | 25% | 25% | No | No | No | No |
| BRA | SA | Brazil | 34% | 34% | Yes | No | No | No |
| BRB | NO | Barbados | 9% | 15% | Yes | No | No | Yes |
| BRN | AS | Brunei Darussalam | 18.5% | 18.5% | No | No | No | No |
| BTN | AS | Bhutan | 25% | 25% | No | No | No | No |
| BWA | AF | Botswana | 22% | 22% | No | No | No | No |
| CAF | AF | Central African Republic | 30% | 30% | No | No | No | No |
| CAN | NO | Canada | 26.14% | 26.14% | Yes | Yes | No | Yes |
| CHE | EU | Switzerland | 19.61% | 19.61% | Yes | No | No | Yes |
| CHL | SA | Chile | 27% | 27% | Yes | No | No | No |
| CHN | AS | China | 25% | 25% | Yes | No | No | No |
| CIV | AF | Cote d’Ivoire | 25% | 25% | No | No | No | No |
| CMR | AF | Cameroon | 33% | 33% | Yes | No | No | No |
| COD | AF | Democratic Republic of the Congo | 30% | 30% | Yes | No | No | No |
| COG | AF | Congo | 28% | 28% | Yes | No | No | No |
| COK | OC | Cook Islands | 20% | 20% | No | No | No | No |
| COL | SA | Colombia | 35% | 35% | Yes | No | No | No |
| COM | AF | Comoros | 50% | 50% | No | No | No | No |
| CPV | AF | Cabo Verde | 21.42% | 21.42% | Yes | No | No | No |
| CRI | NO | Costa Rica | 30% | 30% | Yes | No | No | No |
| CUB | NO | Cuba | 35% | 35% | No | No | No | No |
