Corporate Tax Statistics


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Corporate Tax Statistics 2023: Facts about Corporate Tax outlines the context of what’s happening in the tech world.

LLCBuddy editorial team did hours of research, collected all important statistics on Corporate Tax, and shared those on this page. Our editorial team proofread these to make the data as accurate as possible. We believe you don’t need to check any other resources on the web for the same. You should get everything here only 🙂

Are you planning to form an LLC? Maybe for educational purposes, business research, or personal curiosity, whatever the reason is – it’s always a good idea to gather more information about tech topics like this.

How much of an impact will Corporate Tax Statistics have on your day-to-day? or the day-to-day of your LLC Business? How much does it matter directly or indirectly? You should get answers to all your questions here.

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On this page, you’ll learn about the following:

Top Corporate Tax Statistics 2023

☰ Use “CTRL+F” to quickly find statistics. There are total 14 Corporate Tax Statistics on this page 🙂

Corporate Tax “Latest” Statistics

  • By 2022, a previously enacted corporation rate decrease is anticipated to lower the company tax rate to 25.8% gradually.[1]
  • While South America has the highest regional average statutory rate at 28.38%, Asia has the lowest regional average rate at 19.52%.[1]
  • Bahrain does not impose a general corporate income tax, but it does impose an up to 46% targeted corporate income tax on oil corporations.[1]
  • When regional average rates are weighted for GDP, South America has the highest rate (32.64%), and Europe has the lowest percentage (23.59%).[1]
  • The average statutory corporate tax rate in OECD member countries is 23.57%.[1]
  • Countries have understood how high corporate tax rates affect company investment choices; as a result, in 2021, the average for 180 distinct tax jurisdictions is currently 23.37% and 25.43% when weighted.[1]
  • The weighted average statutory corporate income tax rate for the BRICS is 26.06%, with the average statutory rate being 27.4%.[1]
  • The average statutory corporate income tax rate for the G7, which consists of the seven richest countries in the world, is 26.77%, and the weighted average rate is 26.24%.[1]
  • With a combined federal and state statutory rate of 25.81%, the United States has the 81st highest corporate tax rate in the world.[1]
  • The net tax rate for private companies under Canadian management that claim the small business deduction is 9%.[2]
  • Since the conclusion of World War II, pre-tax corporate earnings, excluding those of the federal reserve banks, have averaged 10.5% of the national income.[3]
  • In comparison to OECD nations, where corporate income tax makes for 10% of overall taxes, the corporate income tax in Africa is 19.2%, and in Latin America and the Caribbean is 15.6% of total taxes.[4]
  • The average AETR across jurisdictions is 20.4%, 1.1 percentage points less than the statutory tax rate of 21.5%.[4]
  • Even after accounting for unprofitable filers, which brought the average global ETR to 22.7%, all ETRs were still far below the maximum statutory tax rate of 35%.[5]

Also Read

How Useful is Corporate Tax

One of the main arguments in favor of corporate tax is that it provides vital funding for government programs and services. By taxing businesses on their profits, governments are able to generate substantial revenue that can be used to fund public infrastructure, education, healthcare, and social welfare. Without corporate tax, these essential services would be severely underfunded, leading to a decline in public services and amenities that we all rely on.

Additionally, corporate tax is often seen as a means of ensuring that businesses contribute their fair share to society. By imposing taxes on corporations, governments are able to redistribute wealth and promote greater income equality. Without corporate tax, the burden of funding government programs would fall even more heavily on individual taxpayers, exacerbating existing income disparities.

Furthermore, some argue that corporate tax can be used as a tool to promote social and environmental responsibility among businesses. By implementing tax incentives for environmentally friendly practices or social initiatives, governments can encourage corporations to act in a more socially responsible manner. This can have a positive impact on society as a whole, leading to greater sustainability and philanthropy in the business world.

On the other hand, opponents of corporate tax argue that it can stifle economic growth and innovation. By taxing businesses on their profits, governments are effectively reducing the amount of capital available for investment and expansion. This can limit the ability of businesses to grow, create jobs, and drive economic development. In a globalized economy where capital is highly mobile, high corporate taxes can also incentivize companies to relocate to countries with lower tax rates, leading to a loss of revenue for the government.

Critics also argue that corporate tax can be complex and burdensome for businesses to comply with. The tax code is often convoluted and full of loopholes that can be exploited by corporations to avoid paying their fair share. This can lead to a situation where smaller businesses end up shouldering a disproportionate amount of the tax burden, while larger corporations with the resources to navigate the tax code pay little to no taxes.

In conclusion, the usefulness of corporate tax is a complex and nuanced issue that continues to spark debate among economists, policymakers, and the general public. While corporate tax is essential for funding government programs and promoting social responsibility among businesses, it can also impede economic growth and innovation. Finding the right balance between generating revenue for the government and promoting business growth is crucial in ensuring a fair and equitable tax system that benefits society as a whole.

Reference

  1. taxfoundation – https://taxfoundation.org/publications/corporate-tax-rates-around-the-world/
  2. canada – https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/corporation-tax-rates.html
  3. epi – https://www.epi.org/publication/ib364-corporate-tax-rates-and-economic-growth/
  4. ey – https://www.ey.com/en_gl/tax-alerts/oecd-releases-corporate-tax-statistics-publication-third-edition-including-anonymized-and-aggregated-country-by-country-report-statistics
  5. gao – https://www.gao.gov/products/gao-13-520

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