Corporate Tax

Company tax charges in OECD, G20 and EU international locations down by 10 proportion factors – MNE tax

The combined statutory corporate tax rates of the OECD, G20 and EU countries decreased in parallel by 10 percentage points in each group from 2000 to 2021, while broadly maintaining their positions relative to one another, according to an update of the OECD tax database dated Aug. September emerges.

The average EU rate, which fell from 32.2% to 22.0%, remains slightly below the average OECD rate, which fell from 32.3% to 22.9%. The average G20 rate, which has fallen from 36.5% to 26.2%, is still a few percentage points above the OECD and EU averages.

The OECD notes that the rate cuts were most pronounced in the first half of the period (2000–2010) – particularly during the 2007–08 financial crisis – but continued into the second half (2011–2021). The top tax rates for personal income taxes also fell over the same period, albeit to a lesser extent – 2.5 percentage points in OECD countries.

The “combined statutory corporate tax rate” in the database combines the total of the individual states at the central and sub-central government levels (minus the deductions for sub-national taxes) and reflects the highest marginal tax rate when those rates are progressive. The combined corporate tax rates in the jurisdictions examined ranged from a low of 9% in Hungary to a high of 31% in Portugal.

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