Corporate Tax

15 nations with the bottom corporate tax charges

In this article we’re going to be the 15 countries with the lowest corporate tax rates. Click here to skip ahead and to jump 5 countries with the lowest corporate tax rates.

The G7 have finally agreed to force big tech companies to pay their fair share of taxes. The new proposed tax system, which, according to British Chancellor of the Exchequer Rishi Sunak, would “transform the global tax system” would affect companies such as Alphabet Inc Class A (NASDAQ :GEL), Facebook, Inc. Common Stock (NASDAQ: FB.), Apple Inc (NASDAQ: AAPL) and Twitter Inc (NYSE: TWTR), which generate tremendous revenues but do not have to pay taxes in certain areas where they are not physically headquartered.

Taxes are the backbone of an economy and there are no two ways to do this. If you want to see the difference 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 tax rates. In developing countries, tax rates are generally quite low, in contrast to Western Europe, for example, which has the highest living standards in the world and also has quite high taxes, often over 50%. And the Scandinavian countries have even higher taxes and still have the happiest populations in the world because those taxes are used to improve infrastructure, provide universal health care and provide quality education to all, not just a few.

Countries around the world have different corporate tax rates. Some countries focus on stricter rules and regulations and therefore have higher tax rates without giving companies much leeway. For example, in recent years the European Union has promised crackdown on companies engaging in tax avoidance, creating rifts between the EU and big tech companies like Alphabet Inc. Class A (NASDAQ: GoogL), Facebook, Inc. common stock (NASDAQ: FB), Apple Inc (NASDAQ: AAPL), and Twitter Inc (NYSE: TWTR). This even has an impact on US-EU relations. Many believe that the latest tax laws proposed by the G-7 are aimed primarily at US tech giants, but European authorities have made it clear that the new tax laws would apply to any business.

The story goes on

Countries with the lowest corporate tax rates

Photo by M on Unsplash

One of the ways businesses can avoid taxes is to take advantage of tax havens. Tax havens refer to offshore countries that have very lax tax regulations and almost no corporate tax rates. These countries generally have very low or even 0% corporate tax rates. Rather, the economies of these countries are stimulated by the companies that register and operate economically there. In fact, many of the entries on our list of countries with the lowest corporate tax rates do not impose corporate taxes at all. We have used the average tax rate for the past ten years as a basis for our list, with the data taken from KPMG. So without further ado, let’s take a look at the most group-friendly countries, starting with 15th place (the ranking may be different as many countries have exactly the 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, one of the few countries on our list with double digit taxes. The country ranks 15th on 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 only 3.3 million inhabitants. The country has suffered a lot in recent history, the Bosnian war cost the country 200 billion euros in damage and devastated the country’s economy. However, it is on the way of development and recreation, mainly thanks to tourism in the picturesque country. The country ranks 14th on 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 annually. In fact, for the small country, 80% of GDP depends on tourism, with the banking sector also making a major contributor due to the company’s status as a tax haven. In the past, several media reports have indicated that companies like Alphabet Inc Class A (NASDAQ: Demokratie), Facebook, Inc.Common Stock (NASDAQ: FB), Apple Inc (NASDAQ: AAPL), Twitter Inc (NYSE: TWTR), and large banks tend to avoid taxes by taking advantage of tax havens like Andorra.

The 15 oldest countries and nations in the world

The 15 oldest countries and nations in the world

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 low and its economy is mainly based on services. Montenegro is also dependent on tourism. Europe was very strict on taxes. It is for this reason that most of the technical innovations and companies like Alphabet Inc Class A (NASDAQ: Demokratie), Facebook, Inc.Common Stock (NASDAQ: FB), Apple Inc (NASDAQ: AAPL) and Twitter Inc (NYSE: TWTR) have formed ) their activities outside the continent. The country ranks 12th on 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 off the coast of France. It does collect taxes, but they are much lower than the global average and are viewed as 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 more than 34.5 million inhabitants and has an extremely low corporate tax rate. It is one of the largest gold mining countries in the world and at the same time one of the largest natural gas producers.

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Countries with the highest economic mobility

9. Vanuatu

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

In our list of countries with the lowest corporate tax rates, you will see many locations that are not as popular or well known. The country is known for its tax haven status, which financial firms have benefited from for decades since the 1970s. The country ranks 9th on 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 just over 40,000 residents and its economy is completely dominated by tourism and offshore finance, which is quite lucrative given 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 a lack of taxes, the Isle of Man is viewed by many as a tax haven and currently has fewer than 100,000 residents. It has a pretty 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%

Most companies do not incur corporate income tax, while companies in the banking sector have a 10% tax rate. There is also no capital gains tax, inheritance tax, capital transfer tax, VAT or even a general withholding tax. Because of this, the country attracts both large numbers of people and businesses. The country ranks 6th on our list of countries with the lowest corporate taxes.

Please keep looking at the 5 countries with the lowest corporate tax rates.

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Disclosure: No shares 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 were originally published on Insider Monkey.

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