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

Proponents of corporate tax argue that it is an essential source of revenue for governments to fund public services and infrastructure. They claim that without corporate tax, the burden of funding these essential services would fall disproportionately on individual taxpayers, leading to higher personal income taxes and reduced spending on important social programs. Corporate tax is seen as a way to level the playing field and ensure that businesses contribute their fair share to society.

Additionally, proponents argue that corporate tax can help address income inequality by ensuring that wealthier individuals and corporations bear a larger tax burden. They argue that without corporate tax, profits earned by corporations would go untaxed, leading to even greater accumulation of wealth at the top and widening the gap between the rich and the poor.

Opponents of corporate tax, however, argue that it is an inefficient and harmful tax that ultimately hurts economic growth and job creation. They claim that corporate tax creates disincentives for businesses to invest, innovate, and expand, ultimately leading to lower productivity and economic stagnation. They argue that by reducing the tax burden on corporations, businesses would have more capital available for investment, which in turn would spur economic growth and create jobs.

Furthermore, opponents of corporate tax argue that the burden of the tax ultimately falls on consumers, workers, and shareholders, rather than on the corporations themselves. They claim that when corporations are taxed, they pass on those costs to consumers in the form of higher prices, to workers in the form of lower wages, and to shareholders in the form of reduced dividends. This, they argue, ultimately harms the very individuals that proponents of corporate tax seek to protect.

In light of these arguments, it is clear that the usefulness of corporate tax is a complex and multifaceted issue. While corporate tax can provide essential revenue for governments to fund necessary services and infrastructure, it can also create barriers to economic growth and harm individuals through higher consumer prices and lower wages.

Ultimately, striking a balance between these competing interests is essential in order to ensure that corporate tax remains a useful and effective tool for governments to raise revenue while also fostering a healthy and dynamic economy. The challenge lies in finding the right balance between ensuring that businesses pay their fair share and creating an environment that encourages investment, innovation, and economic growth.

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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