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

Critics of corporate tax argue that it is counterproductive, hindering economic growth and making businesses less competitive in the global market. They believe that lower corporate taxes would lead to increased investments, higher productivity, and ultimately, more profits for both companies and their stakeholders. This argument is commonly used to justify tax incentives or breaks aimed at boosting businesses and creating a more favorable environment for corporate growth.

On the other hand, proponents of corporate tax emphasize the importance of fairness and social responsibility. They argue that companies benefit from the resources and infrastructure provided by the government, and it is only fair that they contribute back to the community. Additionally, corporate tax helps reduce income inequality by redistributing wealth and ensuring that the burden of taxation is shared equitably among individuals and businesses.

Moreover, corporate tax plays a key role in promoting social cohesion and maintaining a level playing field in the economy. By taxing corporate profits, governments can prevent large companies from amassing wealth at the expense of smaller competitors. This helps create a more diverse and competitive business environment where innovation and entrepreneurship can thrive. Without corporate tax, the market may become dominated by a few powerful players, limiting consumer choice and stifling economic growth.

In addition to providing revenue for public services, corporate tax also serves as a tool for governments to steer economic development and promote certain behaviors. For example, tax credits and incentives can be used to encourage businesses to invest in specific industries or regions, leading to job creation and driving technological innovation. By leveraging corporate tax policy, governments can incentivize businesses to align their interests with societal goals, such as environmental sustainability or social welfare.

Corporate tax also plays a role in shaping corporate behavior and promoting accountability. By imposing taxes on profits, governments can discourage unethical practices such as tax evasion, profit-shifting, or wage exploitation. Companies have a responsibility to conduct their business ethically and contribute to the society in which they operate. Corporate tax serves as a mechanism to hold businesses accountable for their actions and ensure that they are fulfilling their obligations to society.

In conclusion, corporate tax is a vital instrument for governments to finance public services, promote economic growth, and maintain social cohesion. While debates continue over the optimal tax rates and policies, it is clear that corporate tax serves a crucial role in shaping the business environment and ensuring that companies contribute back to the community. As we navigate the complexities of the global economy, corporate tax will continue to be a cornerstone of fiscal policy and a key tool for promoting a fair and prosperous society.

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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