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June 26, 2024 Graphics/Design:
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Which Countries Have the Highest Corporate Tax Rates in G20?
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In the wake of the 1999 Asian financial crisis, government representatives from the 20 largest economies in the world decided to informally gather to coordinate policy on trade. Thus began the G20.
Together the bloc accounts for more than 85% of the world economy and has been credited with unified policy action in response to world events.
However, despite this shared affiliation, this group is still made of fundamentally different economies with varied policies towards their business entities.
For a quick overview, we visualize and rank the G20 countries by their headline corporate tax rates. Data is sourced from Trading Economics, accessed June 2024. Data for the EU and the African Union (both G20 members) has not been included.
Ranked: G20 Members by Their Corporate Tax Rates
Argentina and India have the highest corporate income tax rates, at 35% in the G20.
However, both countries have a progressive ladder for taxation, so this headline number may only apply to a smaller subset of firms. For foreign companies with a โpermanent entityโ in India, the rate climbs past 40%.
RankG20 MemberCorporate Tax Rate 1๐ฆ๐ท Argentina35% 2๐ฎ๐ณ India35% 3๐ง๐ท Brazil34% 4๐ฏ๐ต Japan31% 5๐ฆ๐บ Australia30% 6๐ฉ๐ช Germany30% 7๐ฒ๐ฝ Mexico30% 8๐จ๐ฆ Canada27% 9๐ฟ๐ฆ South Africa27% 10๐จ๐ณ China25% 11๐ซ๐ท France25% 12๐น๐ท Tรผrkiye25% 13๐ฌ๐ง UK25% 14๐ฎ๐น Italy24% 15๐ฐ๐ท South Korea24% 16๐ฎ๐ฉ Indonesia22% 17๐บ๐ธ U.S.21% 18๐ท๐บ Russia20% 19๐ธ๐ฆ Saudi Arabia20%
Note: EU and African Union not included. Figures rounded. Data accessed June 2024.
Interestingly, BRICS countries cover the spectrum of corporate tax rates. Starting from the highest (India, Brazil) to middle of the pack (South Africa, China) to lowest (Russia).
On the other hand, most of the G7 cluster in the mid-ranges (24โ30%), with Japan the highest outlier