Tax Foundation Study : Corporate Income Tax Rates around the World, 2014By Robert Robillard - 22 August 2014
This blogpost originally appeared on rbrt.ca.
The Tax Foundation has recently published a new study focusing on the corporate income tax rates around the world. The document is available here. Among the key findings :
“• The United States has the third highest general top marginal corporate income tax rate in the world at 39.1 percent, exceeded only by Chad and the United Arab Emirates.
• The worldwide average top corporate income tax rate is 22.6 percent (30.6 percent weighted by GDP).
• By region, Europe has the lowest average corporate tax rate at 18.6 percent (26.3 percent weighted by GDP); Africa has the highest average tax rate at 29.1 percent.
• Larger, more industrialized countries tend to have higher corporate income tax rates than developing countries.
• The worldwide (simple) average top corporate tax rate has declined over the past decade from 29.5 percent to 22.6 percent.
• Every region in the world has seen a decline in their average corporate tax rate in the past decade.”
As for Canada, the basic federal corporate tax rate in Part I ITA goes downhill fairly quickly after accounting for the federal tax abatement and the general tax reduction. However, depending on the province(s) where the permanent establishments are located, the combined federal provincial top corporate tax rate varies between 26 % and 31 %. The small business deduction can lower that rate slightly.
Robert Robillard, CPA, CGA, MBA, M.Sc. Econ.
Transfer Pricing Chief Economist, RBRT Inc.
514-742-8086; robert.robillard “at” rbrt.ca
RBRT Inc. is all about transfer pricing. We specialize in transfer pricing. Our services include transfer pricing documentation, transfer pricing dispute resolution, advanced pricing agreement (APA), value chain management and TP planning, transfer pricing training. The information in this blog post is general information only. Data and information come from sources believed to be reliable but complete accuracy cannot be guaranteed. RBRT Inc. and the author are not responsible or liable for any error, omission or inaccuracy in such information. Readers should seek independent tax advice and tax counsel from RBRT Inc. as required.