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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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

Proponents of corporate taxation argue that it is vital for maintaining fairness and equity within the tax system. By requiring corporations to contribute a portion of their profits to the government, corporate tax helps distribute the tax burden more evenly among individuals and businesses. This can help prevent tax avoidance strategies employed by wealthy corporations, ensuring that all entities pay their fair share in supporting public services and infrastructure.

Furthermore, corporate tax revenue can be used by governments to fund various social programs and public services that benefit society as a whole. By taxing corporate profits, governments can finance critical initiatives such as healthcare, education, and infrastructure development, which are essential for the well-being and advancement of citizens. In this sense, corporate tax serves as a means of redistributing wealth and promoting social welfare.

Moreover, critics of corporate tax argue that it can stifle economic growth and hinder business competitiveness. High corporate tax rates may discourage investment, entrepreneurship, and innovation, leading to reduced productivity and job creation. In a globalized economy where businesses can easily relocate to countries with lower tax rates, heavy corporate taxation can make a country less attractive to foreign investors and impede economic development.

On the other hand, some studies suggest that variations in corporate tax rates across countries have limited effects on economic growth, as businesses take other factors into consideration when making investment decisions. Instead of focusing solely on tax rates, policymakers should address broader economic issues such as infrastructure, education, and regulation to promote business activity and attract investment.

Furthermore, corporate tax can create administrative burdens for businesses, particularly small and medium-sized enterprises (SMEs) which may lack the resources to navigate complex tax regulations and compliance requirements. Compliance costs associated with corporate taxation can divert valuable time and resources away from business operations and hinder growth and expansion.

In recent years, there has been growing interest in reforming corporate tax systems to make them more equitable, transparent, and efficient. Reforms such as reducing tax loopholes, simplifying tax codes, and introducing minimum taxes on multinational corporations have been proposed to address some of the shortcomings of current corporate tax practices. By making corporate taxation fairer and more effective, governments can ensure that businesses contribute their share to society while still fostering economic growth and entrepreneurship.

In conclusion, the utility of corporate tax lies in its ability to strike a balance between fairness and economic growth. While corporate taxation can help redistribute wealth and fund essential public services, policymakers should be mindful of potential drawbacks such as hindered competitiveness and administrative burdens. Through thoughtful reforms and effective policymaking, corporate tax systems can be improved to better serve both businesses and 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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