International Comparison of Corporate Income Tax Rates, 2012


Central government rate Adjusted central government rate Sub-central
government rate
Combined corporate rate
Country
Australia 30.0 30.0 30.0
Austria 25.0 25.0 25.0
Belgium 33.99 (33.0) 34.0 34.0
Canada 15.0 15.0 11.1 26.1
Chile 17.0 17.0 17.0
Czech Republic 19.0 19.0 19.0
Denmark 25.0 25.0 25.0
Estonia 21.0 21.0 21.0
Finland 24.5 24.5 24.5
France 34.4 34.4 34.4
Germany 15.825 (15.0) 15.825 14.4 30.2
Greece 20.0 20.0 20.0
Hungary 19.0 19.0 19.0
Iceland 20.0 20.0 20.0
Ireland 12.5 12.5 12.5
Israel 25.0 25.0 0.0 25.0
Italy 27.5 27.5 27.5
Japan 28.05 (25.5) 26.2 10.8 37.0
Korea 22.0 22.0 2.2 24.2
Luxembourg 22.05 (21.0) 22.1 6.8 28.8
Mexico 30.0 30.0 30.0
Netherlands 25.0 25.0 25.0
New Zealand 28.0 28.0 28.0
Norway 28.0 28.0 28.0
Poland 19.0 19.0 19.0
Portugal 25.0 30.0 1.5 31.5
Slovak Republic 19.0 19.0 19.0
Slovenia 20.0 20.0 20.0
Spain 30.0 30.0 30.0
Sweden 26.3 26.3 26.3
Switzerland 8.5 6.7 14.5 21.2
Turkey 20.0 20.0 20.0
United Kingdom 24.0 24.0 24.0
United States 35.0 32.8 6.4 39.1

Central Government Rate: This column shows the basic central government statutory (flat or top marginal) corporate income tax rate, measured gross of a deduction for sub-central tax. Where surtax applies, the statutory corporate rate exclusive of surtax is shown in round brackets ( ).

Adjusted Central Government Rate: This column shows the basic central government statutory corporate income tax rate (inclusive of surtax (if any)), adjusted (if applicable) to show the net rate where the central government provides a deduction in respect of sub-central income tax.

Sub-Central Government Rate: This column shows the basic sub-central (combined state/regional and local) statutory corporate income tax rate, inclusive of sub-central surtax (if any). The rate should be the representative rate reported in Table II.3. Where a sub-central surtax applies, the statutory sub-central corporate rate exclusive of surtax is shown in round brackets ( ).

Combined Corporate Rate: This column shows the basic combined central and sub-central (statutory) corporate income tax rate given by the adjusted central government rate plus the sub-central rate.

Australia: has a non-calendar tax year, the rates shown are those in effect as of 1 July.

Belgium: the effective CIT rate can be substantially reduced by a notional allowance for corporate equity (ACE). E.g. the effective tax rate is only half the nominal tax rate when the return on equity before tax is twice the notional interest rate (3.0% in 2012).

Chile: The Corporate Income Tax rate will be temporarily increased to 20% and 18.5% for profits earned in 2011 and 2012 respectively. It is one of the measures contained in Law 20.455, which was enacted to raise finance for the reconstruction of the country hit by an earthquake in February 2010.

Estonia: from 1 January 2000, the corporate income tax is levied on distributed profits.

France: The rates include a surcharge (the turnover based solidarity tax (Contribution de Solidarité)), but does not include the local business tax (Contribution économique territoriale, a new tax replacing the former Taxe professionnelle from January 1st 2011) or the 5% temporary surtax applies to the standard corporate income tax liability for large company with a turnover exceeding EUR 250 million. More information on the surcharge is included as a comment.

Germany: the rates include the regional trade tax (Gewerbesteuer) and the surcharge.

Hungary: the rates do not include the turnover based local business tax, the innovation tax, temporary sectoral taxes on corporations in the financial sector, energy sector, telecommunication and retail sectors.

Iceland: In late 2011, the Icelandic Parliament passed Act No. 165/2011 on a new financial activities tax (FAT) as part of a general set of measures aimed at increasing tax revenues. The FAT, which is collected from financial institutions and insurance companies (excluding pension funds), comprises two components: (i) a levy on total remuneration paid to employees at a rate of 5.45% and (ii) a special income tax of 6% on institutions’ corporate income tax base in excess of ISK 1 billion.

Israel: within the VAT law, Financial Institutions pay taxes on the combination of their wages and salaries and their profits. These amounts are deductible from profits in the assessment of corporate income tax.

Italy: these rates do not include the regional business tax (Imposta Regionale sulle Attività Produttive; IRAP).

Japan: From 1 April 2012:
- 'Central government corporate income tax rate' has been reduced to 25.5%. At the same time 'The Special Corporation Tax for Reconstruction' was imposed for a period of three years at a rate of 10% resulting in an overall 28.05% tax rate. These figures would be presented as 28.05(25.5) in the table above. The 'Adjusted central government corporate income tax rate' has been reduced to 26.2%
- The 'Sub-central government corporate income tax rate' has been reduced to 10.8%
- As a result of these changes, the 'Combined corporate income tax rate' has been reduced to 37.0%.

Luxembourg: the contribution to the unemployment fund is 5%

Netherlands: applies to taxable income over EUR 200,000

New Zealand: has a non-calendar tax year, the rates shown are those in effect as of 1 April.

Poland: there is no sub-central government tax, however local authorities (of each level) participate in tax revenue at a given percentage for each level of local authority.

Portugal: since 2011 there is a State surtax. In 2011 this surtax was 2% for taxable profit above 2,000,000 euros, while in 2012 and 2013 this surtax is 3% for taxable profit above 1,500,000 euros and 5% for taxable profit above 10,000
000 euros; from 2014 onward as in 2011.

Switzerland: church taxes, which cannot be avoided by enterprises, are included.

United Kingdom: has a non-calendar tax year, the rates shown are those in effect as of 5 April.

United States: the sub-central rate is a weighted average state corporate marginal income tax rate.

Source: Organisation of Economic Co-operation and Development, "Taxation of Corporate and Capital Income," oecd.org, 2012