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Corporate tax rates decline around the world

Corporate tax rates around the world averaged 46.63 percent and 38.84 percent when weighted by GDP, according to an analysis by Daniel Bunn for the Tax Foundation. Declines have been seen in every major region of the world including in the largest economies. Today, most countries have corporate tax rates below 30 percent.

Bunn analyzed key data in determining where countries stand when it comes to corporate tax rates. Among the key findings identified and released November 27, 2018 are the following.

  • In general, large industrialized nations tend to have higher statutory corporate income tax rates than developing countries.
  • The worldwide average statutory corporate income tax rate, measured across 208 jurisdictions, is 23.03 percent. When weighted by GDP, the average statutory rate is 26.47 percent.
  • The average top corporate rate among EU countries is 21.68 percent, 23.69 percent in OECD countries, and 27.63 percent in the G7.
  • Europe has the lowest regional average rate, at 18.38 percent (25.43 percent when weighted by GDP). Conversely, Africa has the highest regional average statutory rate, at 28.81 percent (28.39 percent weighted by GDP).
  • The worldwide average statutory corporate tax rate has consistently decreased since 1980, with the largest decline occurring in the early 2000s.
  • The average statutory corporate tax rate has declined in every region since 1980.