15 countries with the lowest corporate tax rates


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In this article, we will list the 15 countries with the lowest corporate tax rates. Click to move forward and go to 5 countries with the lowest corporate tax rates.

The G-7 countries have finally agreed to force big tech companies to pay their fair share of taxes. The proposed new tax system, which, according to the Chancellor of the Exchequer of the United Kingdom Rishi Sunak “Transform the global tax system,” would affect companies like Alphabet Inc Class A (NASDAQ: GOOGL), Facebook, Inc. Common Stock (NASDAQ: FB), Apple Inc (NASDAQ: AAPL) and Twitter Inc (NYSE: TWTR) which enjoy huge incomes but do not have to pay taxes in certain areas where they do not have a physical seat.

Taxes are the backbone of an economy and there are no two ways about it. If you want to differentiate between a developed economy and a developing economy, or a country with a high standard of living versus a country with a lower standard of living, just look at the tax rates. In developing economies, tax rates generally tend to be quite low, unlike Western Europe, for example, which has countries that have the highest living standards in the world and also have taxes. quite high, often exceeding 50%. And the Scandinavian countries have even higher taxes, and yet still have the happiest people in the world because those taxes are spent to improve infrastructure, provide universal health care, and provide high quality education for everyone. world, rather than a privileged few.

All over the world, countries have different corporate tax rates. Some countries focus on stricter rules and regulations and, as a result, have higher tax rates without giving companies much leeway. For example, in recent years the European Union has made a commitment to tackle companies that engage in tax evasion, which has caused divisions between the EU and big tech companies such as Alphabet Inc. Class A (NASDAQ: GOOGL), Facebook, Inc. Common stock (NASDAQ: FB), Apple Inc (NASDAQ: AAPL) and Twitter Inc (NYSE: TWTR). It even had an effect on US-EU relations. Many believe the latest tax laws proposed by G-7 countries are primarily aimed at US-based tech giants, but European officials have clarified that the new tax laws will apply to all businesses.

photo by M at Unsplash

One of the ways businesses avoid tax is by using tax havens. Tax havens refer to offshore countries that have really lax tax regulations and almost no corporate tax rates. These countries generally have very low corporate tax rates, even 0%. On the contrary, the economy of these countries is stimulated by companies that register there and engage in economic activities. In fact, many of the entries on our list of countries with the lowest corporate tax rates actually levy no corporate taxes. We based our list on the average tax rate over the past decade, with the data drawn from KPMG. So, without further ado, let’s take a look at the most business-friendly countries, starting with number 15 (the ranking may be different due to the fact that many countries have the exact same tax rates).

Countries with the lowest corporate tax rates

15. Bulgaria

Average corporate tax rate in the country over the past 10 years (2011 to 2020): 10%

We start our list with Bulgaria, which is one of the few countries on our list that has double-digit taxes. The country ranks 15th in our list of countries with the lowest corporate taxes.

14. Bosnia and Herzegovina

Average corporate tax rate in the country over the past 10 years (2011 to 2020): 10%

Bosnia and Herzegovina has a population of only 3.3 million people. The country has suffered greatly in recent history, with the Bosnian war costing the country 200 billion euros in damage and devastating the country’s economy. However, it is on the path to development and recovery, especially thanks to the tourism of the picturesque country. The country ranks 14th in our list of countries with the lowest corporate taxes.

13. Andorra

Average corporate tax rate in the country over the past 10 years (2011 to 2020): 10%

Andorra is a small European country with only 80,000 inhabitants. In fact, it is the sixth smallest country in Europe and receives 10 million visitors per year. In fact, 80% of the GDP depends on tourism for the small country, with the banking sector also being a major contributor due to the company’s tax haven status. In the past, several media outlets have suggested that companies like Alphabet Inc Class A (NASDAQ: GOOGL), Facebook, Inc. Common Stock (NASDAQ: FB), Apple Inc (NASDAQ: AAPL), Twitter Inc (NYSE: TWTR) and the big banks tend to avoid taxes by using tax havens like Andorra.

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Gurgen Bakhshetsyan / Shutterstock.com

12. Montenegro

Average corporate tax rate in the country over the past 10 years (2011 to 2020): 9%

Montenegro is one of the few European countries on our list, as European countries actually tend to have higher taxes. The country has only 620,000 inhabitants, which is extremely small and its economy is mainly based on services. Montenegro is also dependent on tourism. Europe has been very strict on tax matters. This is why most of the technological innovations and companies like Alphabet Inc Class A (NASDAQ: GOOGL), Facebook, Inc. Common Stock (NASDAQ: FB), Apple Inc (NASDAQ: AAPL) and Twitter Inc (NYSE: TWTR) have based their operations outside the continent. The country ranks 12th in our list of countries with the lowest corporate taxes.

Mladen Davidovic / Shutterstock.com

11. Jersey

Average corporate tax rate in the country over the past 10 years (2011 to 2020): 8%

Jersey is an island near the French coast. Although it levies taxes, they are well below the world average and are considered a tax haven by many different organizations.

Pixabay

10. Uzbekistan

Average corporate tax rate in the country over the past 10 years (2011 to 2020): 7.5%

The Muslim country has a population of over 34.5 million and has an extremely low corporate tax rate. It is one of the largest gold mining countries in the world while being one of the largest producers of natural gas.

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9. Vanuatu

Average corporate tax rate in the country over the past 10 years (2011 to 2020): 3.4%

You will see many places in our list of countries with the lowest corporate tax rates that are not that popular or well known. The country is known for its tax haven status, with financial corporations enjoying it for decades, since the 1970s. The country ranks 9th in our list of countries with the lowest corporate taxes.

8. Turks and Caicos Islands

Average corporate tax rate in the country over the past 10 years (2011 to 2020): 0%

The UK Overseas Territory has a population of just over 40,000 and its economy is dominated by tourism and offshore financing, which is quite lucrative due to the 0% corporate tax in the country. The country ranks 8th on our list of countries with the lowest corporate taxes.

7. Isle of Man

Average corporate tax rate in the country over the past 10 years (2011 to 2020): 0%

Due to the lack of taxes on the Isle of Man, it is considered by many to be a tax haven and currently has a population of less than 100,000. It has a fairly high GDP per capita of at least $ 84,600. The country ranks 7th on our list of countries with the lowest corporate taxes.

6. Guernsey

Average corporate tax rate in the country over the past 10 years (2011 to 2020): 0%

There is no corporate tax for most businesses, while for businesses in the banking industry there is a 10% tax rate. There is also no capital gains tax, inheritance tax, capital transfer tax, value added tax or even withholding tax. This is why the country attracts a lot of people as well as businesses. The country ranks 6th in our list of countries with the lowest corporate taxes.

Please continue to see the 5 countries with the lowest corporate tax rates.

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Disclosure: No ownership interest in Alphabet Inc Class A (NASDAQ: GOOGL) Facebook, Inc. Common stock (NASDAQ: FB) Apple Inc (NASDAQ: AAPL), Twitter Inc (NYSE: TWTR). 15 countries with the lowest corporate tax rates is originally published on Insider Monkey.



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