Corporate taxation is a complex tax system, and differs by country. This tax can also be referred to as corporation tax or company tax and is a tax on the income of some types of corporations. Company income tax is often decided like taxable income for individuals but sometimes the corporate tax rates can differ. Some countries tax companies on income and when the business pays a dividend. Sometimes businesses may not have to pay any tax.
There are some countries that do not have a corporate income tax rate but the companies are required to pay other types of taxation. In some countries, multinationals (MNCs) pay a potential tax rate of between 5% and 15% conditional on market cap.
US Claims the Highest Corporate Tax Rate
The foremost corporate tax rate in the world belongs to the US. At 40% the highest-ranking corporate tax rate the US has motivated many industries to “invert”. Inversion of US businesses means that a business buys a foreign subsidiary and relocates its main office (on paper at least) to that country where it benefits from a reduced tax rate. Some have called this practice “positively un-American.”
The Honor of the Second Highest Corporate Tax Rate Goes to Japan
Japan has the second highest corporate tax rate at between 35% and 64%. Because Japan’s economy has been troubled by deflation and slow-moving growth for decades, they have initiated an improvement strategy. Japan intends to decrease the corporate tax rate to fewer than 30%. This strategy is called “Abenomics” in honor of Prime Minister Shinzo Abe.
Coming in Third is Argentina
With a corporate tax rate of 35% Argentina is floundering to get the economy back in a good place. The high tax rate, persistent debt argument with global creditors, and the continued drop of the peso only puts more stress on businesses functioning in Latin America’s third largest economy.
Pakistan and Venezuela Tie For Fourth Place
Pakistan and Venezuela tie with a corporate tax rate of 35% Because of Pakistan’s role in the West’s conflict with Islamist terror groups, the GPD of this nation is unstable. The country is working to lower its high corporate tax rate.
Venezuela has the foremost inflation rate in the world at 64%, making its high corporate tax rate a minor problem. The decrease in the cost of oil is an issue that only increases the nations staggering debt. Fossil fuel is the largest export of Venezuela at 95%.
A Few More High Corporate Tax Rate Countries
The following countries have next highest corporate tax rates and are listed in ranking order highest to lowest for corporate tax percentage:
| 33.99% Belgium | 30% Tanisia |
| 33.995 Syria | 30% Uruguay |
| 33.99% Guyana | 30% Morocco |
| 33.99% Zambia | 30% Jordan |
| 33.3% Jamaica | 30% Australia |
| 33% Cameroon | 30% Bhutan |
| 33% Monaco | 30% Cuba |
| 33% France | 30% El Salvador |
| 33% Columbia | 30% Peru |
| 33% Angola | 30% Philippines |
Tax Services
Many tax services are available to help with tax planning. This may include individual and corporate income tax preparation, estate and trust planning, IRS audit representation, payroll tax services, and sales tax services. For help with corporate taxes or other tax needs in the southern California area contact tax preparation services in Encino.
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