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List of countries by tax rates
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List of countries by tax rates
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Taxation by country
Map of the world showing national-level sales tax / VAT rates as of October 2019

A comparison of tax rates by countries is difficult and somewhat subjective, as tax laws in most countries are extremely complex and the tax burden falls differently on different groups in each country and sub-national unit. The list focuses on the main types of taxes: corporate tax (excluding dividend taxes), individual income tax, capital gains tax, wealth tax (excluding property tax), property tax, inheritance tax and sales tax (incl. VAT and GST).

Personal income tax includes all applicable taxes, including all unvested social security contributions. Vested social security contributions are not included as they contribute to the personal wealth and will be paid back upon retirement or emigration, either as lump sum or as pension. Only social security contributions without a ceiling can be included in the highest marginal tax rate as only those are effectively a tax for general distribution among the population.

The table is not exhaustive in representing the true tax burden to either the corporation or the individual in the listed country. The tax rates displayed are marginal and do not account for deductions, exemptions or rebates. The effective rate is usually lower than the marginal rate. The tax rates given for federations (such as the United States and Canada) are averages and vary depending on the state or province. Territories that have different rates to their respective nation are in italics.

Tax rates by countries and territories

[edit]
Tax jurisdiction Corporate Individual income Capital gains[1] Wealth Property Inheritance / Estate VAT or GST
or Sales 		Further reading
Lowest Highest
 Afghanistan 20%[2] 0%[3] 20%[3] 0% (however, in Taliban run areas pre-Taliban rule, small fees were illegally added to groceries)[4][5] Taxation in Afghanistan
 Albania 15%[6] 0%[7] 23%[7] 15% 20% (standard)
6% (tourism services)[8] 		Taxation in Albania
 Algeria 19–26%[9] 0%[10] 35%[10] 15%(resident) 20% (non-resident) 19% (standard)[11]
9% (basic items)[11] 		Taxation in Algeria
 American Samoa 34%[6] 4%[12][13] 6%[13] 0% 0%[14][13] Taxation in American Samoa
 Andorra 10%[15] 0%[16] 10%[16] 4.5% (standard)
9.5% (banking services)
2.5%, 1% or 0% (reduced rates)[17] 		Taxation in Andorra
 Angola 30%[18] 0%[18] 17%[18] 10% 14%[19] Taxation in Angola
 Anguilla 0%[20] 0%[20] 0%[20] Taxation in Anguilla
 Antigua and Barbuda 25%[21] 0%[22] 15%[23] Taxation in Antigua and Barbuda
 Argentina 35% (residents)
15% (non-residents)[24] 		9%[24] 35%[24] 15% 21%[24] Taxation in Argentina
 Armenia 18%[25] 22%[25] 22%[25] 10–20% 20%[25] Taxation in Armenia
 Aruba 25%[26] 7%[26] 58.95%[26] 1.5% (turnover tax)[26] Taxation in Aruba
 Australia 30% (standard)
25% (base entity)[27][Note 1] 		0%[27] 45%[28][Note 2] 0–45% No[29] 0% 10% (standard)
0% (essential items)[27] 		Taxation in Australia
 Austria 23%[30] 0%[31] 55%[31] 27.5%[32] No[33] No, but stamp duty for inherited real estate. 20% (standard)
13% (tourism services)
10% (basic items)[34] 		Taxation in Austria
 Azerbaijan 20%[35] 14%[35] 25%[35] [36] 18%[35] Taxation in Azerbaijan
 Azores 13.6% (SMEs, up to a taxable profit of €15,000)[37]

16.8% (general)

0% (for monthly salaries up to €654 + social security charges)[38] 36.2% (for monthly salaries above €25,200 + social security charges)[39] 4% (reduced)

9% (intermediate)

16% (standard)[40]

Taxation in Portugal
 Bahamas[41] 0%[42] 0% 8.8% (social security tax) 12% (standard)[43] Taxation in the Bahamas
 Bahrain 0%[44] 0% 10% (standard rate)
0% (essential goods) 		Taxation in Bahrain
 Bangladesh[45] 32.5%[46] 0% 25% 15% Taxation in Bangladesh
 Barbados[citation needed] 5.5% (under BBD$1 million)
3.0% (BBD$1–20 million)
2.5% (BBD$20–30 million)
1.0% (over BBD$30 million)[47] 		25% 38% 17.5% (standard)
7.5% (hotel services) 		Taxation in Barbados
 Belarus[48] 20% 43.37% (12% + 1% mandatory insurance + 35% social security) 20% (standard)
10% (reduced) 		Taxation in Belarus
 Belgium[45] 25%[49] 55%(single/secluded)
50% (legally married) 		60.45%
(13.07% (mandatory social security tax),
50% (federal),[50]
3–9% (municipal)[51]) 		No[52] 80%[53] 21% (standard)
12% (restaurants)
6% (essential and selected goods) 		Taxation in Belgium
 Belize 25% (general)[54]

1.75% (small businesses with income below BZ$ 300.000)

19% (tourism related companies - incl. hotels and restaurants)

37.5% (banks and other financial institutions)

25%[55] 0% (except in some specific cases) No 12.5% Taxation in Belize
 Benin[citation needed] 35% 10% 35% 18% Taxation in Benin
 Bermuda 0%[56] 0% 0% Taxation in Bermuda
 Bhutan 26% 0% 25%[57] — Taxation in Bhutan
 Bolivia 29% 0% 25% 13% Taxation in Bolivia
 Bosnia and Herzegovina 10%[58] 10% 17%[58] Taxation in Bosnia and Herzegovina
 Botswana 22% 0% 25% 25% 14% Taxation in Botswana
 Brazil[45] 40% (highest rate for financial institutions, insurance and capitalisation companies)
24–34% (general)
15% (+10% in profits exceeding BR$ 20.000[59] + 9% Social Contribution Tax or 15% for financial institutions, insurance and capitalisation companies[60]) 		0%[61] 27.5%[62] 22.5% 8%[63] 20–30.7%[64] Taxation in Brazil
 Brunei 1% (sole proprietorships and partnerships)

18.5% (all other businesses)[65]

0% 0%[65] —[66] Taxation in Brunei
 Bulgaria 10% (+5% on distribution of profit) 10% 10% 20% (9% on hotel and camping accommodation) Taxation in Bulgaria
 Burkina Faso 27.5% 0% 25% 18% Taxation in Burkina Faso
 Burundi[67] 35% 0% 35% 18% Taxation in Burundi
 Cambodia 20% 0% 20% 10% Taxation in Cambodia
 Cameroon[48] 31.5% 10% 35% 19.25% Taxation in Cameroon
 Canada 26.5–31% (higher)
9–13% (lower)[68] 		19% (15% federal + 4% in Nunavut)[69] 27.53% (12.53% federal + 15% in Quebec)[70][71][72] 58.50% (33% federal + 25.5% in Quebec)

44.5% (33% federal + 11.5% in Nunavut)[69][72]

27% No[73] No, however the deceased is considered to have sold all of his or her capital property for Fair Market Value immediately prior to death and capital gains are 50% taxable and added to all other income of the deceased on their final return.[74] 5% (5% federal tax in Alberta) to 15% (5% federal tax + 10% provincial tax in New Brunswick)[75] Taxation in Canada
 Cape Verde 25% 16.5% 27.5% 15% Taxation in Cape Verde
 Cayman Islands 0%[76] 0%[76] 0%[76][77][Note 3] Taxation in the Cayman Islands
 Central African Republic 30%[78] — 50%[78] 19% Taxation in the Central African Republic
 Chad 20% — — — — Taxation in Chad
 Chile[79] 25–27% [80] 0% (for monthly taxable incomes under US$950) 40% (for monthly taxable incomes over US$190,000)[81] 10% No[82] 25% 19% Taxation in Chile
 China[45] 25% (standard)[83]

15% (concession rate for high-tech companies)[84]

0% 45%[85][86] 20% 0% - The Chinese government owns all lands in China and the government does not tax homeowners.[87] 0%[88] 13% (standard)[66]
9% (energy, books, transportation, etc.)
6% (other services)
0% (goods and services for export) 		Taxation in China
 Colombia[48] 35%[89] 0%[90] 35% (non-labor income)
39% (labor income)[90] 		10% (standard)
20% (lotteries, gaming, or similar activities)[91] 		Yes[92] 19% (standard)
5% or 0% (reduced rates) 		Taxation in Colombia
 Comoros 35% — — — — Taxation in the Comoros
 Cook Islands 20–30% 18.5% 30% 0% [93] 15% Taxation in the Cook Islands
 DR Congo 35% 0% 40% 5–20% Taxation in the Democratic Republic of the Congo
 Congo 30%[94] — — 18.9%[95] Taxation in the Republic of the Congo
 Costa Rica 30% 0% 25% No[96] 13% (standard)
4% (private healthcare and plane tickets)
2% (medicines and private education)
1% (essential foods and agriculture)[97] 		Taxation in Costa Rica
 Croatia[48] 18% (over 3 million kn)
12% (under 3 million kn) 		12% 40% 10% 5% 25% (standard)[98]
13% (certain essential groceries) 		Taxation in Croatia
 Cuba[99] 30% 15% 50% 2.5–20% Taxation in Cuba
 Curaçao 22% 9.75% 46.5% 6%, 7% or 9% Taxation in Curaçao
 Cyprus[45] 12.5% 0% 35% 20% 19% (standard)
5% or 0% (reduced rates) 		Taxation in Cyprus
 Czech Republic[100][101] 21%[102] 20.1% (15% deductible tax + 45% healthcare and social security if an employee, 22.5% if self-employed)[103] 45.7% (peaks for employee gross annual income of $90,000 or more)
39% (for gross annual income of $450,000 or more)[citation needed] 		15% No[104] 21% (standard)[105]
12% (reduced) 		Taxation in the Czech Republic
 Denmark[106] 22–25% (depending on business) 39.86% (34.63% for unemployed; first DKK46,000 / US$7,245 / €6,172 per year is deductible)[107][108] 52.07%[109] 42% No[110] 15% 25% Taxation in Denmark
 Djibouti 25% — — — Taxation in Djibouti
 Dominica 25%[111] 0% 35% 15% Taxation in Dominica
 Dominican Republic 27% 0% 25% 27%[112] 18% Taxation in the Dominican Republic
 Timor-Leste 10% — — — Taxation in East Timor
 Ecuador 25%[113] 0% 35% 35% 35%[114] 12% (standard)
15% (luxury goods)
0% (exports) 		Taxation in Ecuador
 Egypt[115] 22.5% (on taxable corporate profits)
(+ 5% on distribution of profit) 		0% 27.5% 14% (standard)
10% (professional services)
0% (exports) 		Taxation in Egypt
 El Salvador 30% 0% 30% 13% Taxation in El Salvador
 Equatorial Guinea 35% 0% 35% 15% Taxation in Equatorial Guinea
 Eritrea 34% — — — Taxation in Eritrea
 Estonia[116] 0% (20% on distribution or 14% on distribution below the 3 previous years average) 6.9% (for minimum wage full-time work in 2024; excluding social security taxes paid by the employer) 23.6% (for employees earning over €25,200 per year in 2024: includes 20% flat income tax + 2% mandatory pension contribution + 1.6% unemployment insurance paid by employee); excluding social security taxes paid by the employer and taxes on dividends 20% No[117] 0% 22% (standard)
9% (reduced) 		Taxation in Estonia
 Eswatini (Swaziland) 27.5% 0%[118] 33%[118] 15% Taxation in Eswatini
 Ethiopia 30%[119] 0% 35% — Taxation in Ethiopia
 Falkland Islands 26% 0% 26% 15% 0% Taxation in the Falkland Islands
Faroe Islands 18% 20% 0% [120] Taxation in the Faroe Islands
 Micronesia 21% — — — Taxation in Micronesia
 Fiji 20%[121] 0% 20% 9% Taxation in Fiji
 Finland 20%[122]

18% (from 2027)[123]

8.4% (social security tax)[124]
 53.61% (in Halsua for the members of the Orthodox Church of Finland: 31.25% national tax rate + 23.5% municipal tax + 9.9% social security tax + 2.1% church tax)[125] 34% No[126] 33%[127] 25.5% (standard)
14% (food and fodder)
10% (medicines and public transport) 		Taxation in Finland
 France 25% 0% 55.34% (45% IR + 4% CEHR + 9.2% CSG + 0.5% CRDS + 0.4% Old-age insurance + 6% PER)[128][129][130] 30% (+4% for high earners) Yes[131] 60%[132] 20% (standard)
10% (restaurants, transportation and tourism services)
5.5% (utilities)
2.1% (press) 		Taxation in France
 French Polynesia 25% — — — Taxation in French Polynesia
 Gabon 35% 5% 35% 18% Taxation in Gabon
 Gambia 31% 0% 30% — Taxation in the Gambia
 Germany 30% (15% corporate tax (+ 5.5% solidarity surcharge) + 7% to 17% trade tax)[133] 19.6% (social security contributions)

0% (earning under €11,604 per year)

45% (+ 39.2% social security contributions up to €90,600 per year, half paid by employer (14.6% health + 18.6% pension + 3.4% care + 2.6% unemployment)) 25% Inactive [134] Yes 50%[135] 19% (standard)
7% (reduced) 		Taxation in Germany
 Georgia[136] 0% (15% on distribution of profit) 20% (5% on dividend, interest and royalty) 0%[137] 18% Taxation in Georgia
 Ghana 25% 25% — 3% Taxation in Ghana
 Gibraltar 10% 17% 40% 0% Taxation in Gibraltar
 Greece 22% 9% (zero tax for annual income under €8633,33) 44% 15% No[138] 20% 24% (standard)
13% (food, health and tourism services)
6% (theater tickets, books and medicine)
VAT is reduced by 30% for the islands of Leros, Lesvos, Kos, Samos, Chios (i.e., 17%, 9%, 4%). 		Taxation in Greece
 Greenland 25% 44% 0% 0% Taxation in Greenland
 Grenada 28% — — — Taxation in Grenada
 Guatemala[48] 25% 5% 7% 12% Taxation in Guatemala
 Guernsey 0%[139] 0% (earning under £658.67 per month)[140] 20% (+ 6.6–11.3% Social Security)[140] Document duty charged on real estate transfers from estates. 0%[141] Taxation in Guernsey
 Guinea 35% — — — Taxation in Guinea
 Guinea-Bissau 35% — — — Taxation in Guinea-Bissau
 Guyana[142][143] 30% 25% (chargeable income under $3,120,000 GYD)[143] 35% (chargeable income over $3,120,000 GYD)[143] 14% (standard)
0% (reduced) 		Taxation in Guyana[143]
 Haiti 30%[144] 0% 30%[145] 10%[144] Taxation in Haiti
 Honduras 25% — — — Taxation in Honduras
 Hong Kong[146] 16.5% (over HK$2 million)
8.25% (under HK$2 million) 		0% 15% 0% 0% Taxation in Hong Kong
 Hungary 9% 15% (+ 18.5% social security + 13% social contribution tax) 15% No[147] 18%[148] 27% (standard)
18% (reduced)
5% (certain foods, internet service, restaurant services, medicines and books) 		Taxation in Hungary
 Iceland[48] 20% 31.48% (On income up to 446.136 ISK)[149] 46.28% 22% No[150] 10% 24% (standard)
11% (reduced) 		Taxation in Iceland
 India 15–22% (excludes surcharge & cess)[151] 0% (₹ 0 - 400,000 + 12% of basic salary for epf or social security) 39% (including Surcharge & Health and Education Cess for Income greater than Rs.20,000,000) 12.5% (LTCG)

20% (STCG)

0% 40% (Luxury and Sin Goods rate)

18% (standard)

5%, 0% (Essential Goods & Services rate) (varies by commodity; see GST rates in India)[152][153]

Taxation in India
 Indonesia 22% 5% 35% 11% Taxation in Indonesia
 Iran 25% 0% 35% 0–9% Taxation in Iran
 Iraq 15%[154] 3%[155] 15% 300% (Alcohol and tobacco)

15% (Cars and travel) 20% (Mobile recharge cards and internet)

10% (Deluxe and first class restaurants and hotels)[156]

Taxation in Iraq
 Ireland 12.5% 20% (first €1,650 per year is deductible) 52.1% (40% + 12.1% social insurance contributions on incomes above €44,000) 33% No[157] 33%[158] 23% (goods)
9–13.5% (services)
0% (certain items of food) 		Taxation in Ireland
 Isle of Man 0% 10% 22%[2] 20% (standard rate)
5% (home renovations) 		Taxation in the Isle of Man
 Israel 23%[159] 0% (for monthly income under 6,330₪) 50% 25% No[160] 0% 18% (standard)
0% (fruits and vegetables) 		Taxation in Israel
 Italy 27.9% (24% + 3.9% on tax-adjusted EBITDA) 23% (first €8,500 per year is deductible); + municipal and local taxes (0-3%) 43% (+ municipal and local taxes (0-3%)) 26% No[161] 4% 22% (standard)
10% (reduced rate on certain products e.g. food)
4% (on products of first necessity) 		Taxation in Italy
 Ivory Coast 25% — — — Taxation in the Ivory Coast
 Jamaica 33.3% (standard)
25% (reduced rate for small companies) 		0% (on income up to J$1,774,554) 30% (on income over J$6,000,000) 20% (services)
16.5% (goods) 		Taxation in Jamaica
 Japan[162] 29.74%[163] 15.105% (10% local + 5.105% national) 50.5% (45% national + 10% local) 20.315% No[164] 55%[165] 10% (standard)
8% (groceries and takeout food and subscription newspaper) 		Taxation in Japan
 Jersey[45] 0% 0% 20%[166] Stamp duty on probate starting at £50, rising progressively. 5%[167] Taxation in Jersey
 Jordan[48] 20% 0% 25%[168] 16% Taxation in Jordan
 Kazakhstan[48] 20%[133][2] 10% 10% (residents)
15% (non-residents) 		13% Taxation in Kazakhstan
 Kenya 30%[133] 10% 30% (citizens)
35% (non-citizens) 		16% (standard)
12% (electricity and fuel)
0% (food) 		Taxation in Kenya
 Kiribati 35% — — — Taxation in Kiribati
Kosovo[169] 0–10% 0% 10% 0% Taxation in Kosovo
 Kuwait 7.5–16% (Rate of 15% typically applies except for regions under Saudi control where it's 7.5% tax, plus add a possible 1% tax for Zakat)[170] 0% 0% 0% Taxation in Kuwait
 North Korea[171] 25% 0% 20% 10%[172] Taxation in North Korea
 Kyrgyzstan 10%[173] 10% 12% (standard)
1–5% 		Taxation in Kyrgyzstan
 Laos 35% — — — Taxation in Laos
 Latvia 0% (20% on distribution of profit)[174] 20%[175] 31.4% 20%[176] No[177] 21% (standard)
12% (Medical products, domestic public transport)
5% (Fresh fruits and vegetables, books, newspapers)[178] 		Taxation in Latvia
 Lebanon[48] 17% 2% 25% 11% Taxation in Lebanon
 Lesotho 25% — — — Taxation in Lesotho
 Liberia 25%[179] — — — Taxation in Liberia
 Libya 24.5% (20% + 4% Jehad tax + 0.5% corporate income tax to pay for stamp duties)[180] — — — Taxation in Libya
 Liechtenstein[181][182] 12.5% 3%[183] 22.4%[184] 0% (share sales)

24% (real estate)

8.1% (standard)
3.8% (lodging services)
2.5% (reduced)[185] 		Taxation in Liechtenstein
 Lithuania[citation needed] 15%[186] 31.2% 42.77% 15% No[187] 21% (standard)
9% (publications, accommodation services etc.)
5% (medicine, newspapers and magazines etc.)
0% (certain goods and services) 		Taxation in Lithuania
 Luxembourg 28.69% (17% income tax + 1.19% unemployment fund contribution + 6.0–10.5% municipal trade tax[188] 8% 44.2% (42%[189] + 3.78% unemployment fund surcharge)[190] No[191] 0% 17% (standard)
3% (reduced) 		Taxation in Luxembourg
 Macau[45] 12% 0% 12%[192] 0%[193] Taxation in Macau
 Madagascar 20% — — — Taxation in Madagascar
 Madeira 5% (licensed companies in the International Business Centre of Madeira).

13% (SMEs, applicable up to a taxable profit of €15000)

20% (general)

0% (for monthly salaries up to €659) + social security charges[39] 45.1% (for monthly salaries above €25,275 + social security charges)[39] 5% (reduced)

12% (intermediate)

22% (standard)[194]

Taxation in Madeira
 Malawi 30% 0% 35%[195] — Taxation in Malawi
 Malaysia[45] 18–24% 0% 30%[196] (+ 11% for EPF[197] + 0.5% for SOCSO[198]) 10% (standard rate for goods)
7% (services)
5% (reduced rate for goods)[199] 		Taxation in Malaysia
 Maldives[200] 8–15%[201] 0% 0% (expatriates)

15% (nationals)

6%[202] Taxation in the Maldives
 Mali 30% — — — Taxation in Mali
 Malta 35% (unless eligible for 30% rebate) 0% 35% 0% 0% 18% (7% and 5% for certain goods and services) Taxation in Malta
 Marshall Islands 0.8–3% 0% 12%[203] 2–4%[citation needed] Taxation in the Marshall Islands
 Mauritania 25% — — 0% — Taxation in Mauritania
 Mauritius 15% 0% 15% 15% Taxation in Mauritius
 Mexico[45] 30%[204] 1.92% 35% (+ reduction of deductions (topes)) No[205] 0% 16% Taxation in Mexico
 Moldova[45] 12% 12%[206] 12% (+ 24% for social security) 20% (standard)
10% (HoReCa) 		Taxation in Moldova
 Monaco 0% (25% for companies generating more than 25% of their turnover outside Monaco)[207] 0%[208] 20% (standard)

10% (reduced)

5.5% (basic products)[209]

Taxation in Monaco
 Mongolia 10% 10% 10% Taxation in Mongolia
 Montenegro 9%[210][211] 9% (first €720)[211] 12.65% (11% national tax + 15% municipality surtax on income tax)[211]

15% (entrepreneurs on their worldwide income)[212]

21%[213]
7% (essential goods - basic foodstufs, water, pharmaceuticals, books, tourism services, etc.)
0% (postal services, education, social security services, healthcare, insurance, etc.) 		Taxation in Montenegro
 Montserrat 20% — — — Taxation in Montserrat
 Morocco 10–31%[133][214] 0% 38%[214] 20% (standard)
14%, 10%, 7% (reduced rates)[215] 		Taxation in Morocco
 Mozambique 32% — — — Taxation in Mozambique
 Myanmar 22% — — — Taxation in Myanmar
 Namibia 32%[216] 0%[216] 37%[216] 15%[216] Taxation in Namibia
 Nauru 25% — — — Taxation in Nauru
   Nepal 30% (higher rate for financial companies)
25% (standard)
20% (reduced rate for manufacturing companies)
(+ 5% on profit distribution + 10% mandatory bonus to employees) 		0% (+ 1% social security tax) 36% (Including 20% additional tax)[217] 13% (standard)[218]
288% (for imported vehicles)[219]
 Taxation in Nepal
 Netherlands 25% (over €245,000)
15%[220] (under €245,000) 		0% (first €8,700 per year is tax free) 49.5%[221] 36% No[222] 40%, 36%, 20% (total value > €154.179)
20%, 18%, 10% (total value < €154.179)
[223][Note 4] 		21% (standard)
9% (essential and selected goods) 		Taxation in the Netherlands
 New Zealand 28% 10.5%[224] 39%[225] No[226] 0% 15% Taxation in New Zealand
 New Caledonia[227] 30% 0% 40% (residents)
25% (non-residents)[228] 		— Taxation in New Caledonia
 Nicaragua 30% — — — Taxation in Nicaragua
 Niger 30%[229] — — 7%[229] Taxation in Niger
 Nigeria 30% 7% 24% 7.5% Taxation in Nigeria
 Niue 0% — — 12.5% Taxation in Niue
 Norfolk Island 0% — — 0%[230] — Taxation in Norfolk Island
 North Macedonia[45] 10% 10% 18% 18% (standard)
5% (reduced) 		Taxation in North Macedonia
 Norway[231] 22%[232] 0% (for yearly income under 100,000 NOK)[233] 47.4%[234] 37.84%[235] Yes[236] 0%[237] 25% (standard rate)
15% (food and drink)
12% (transportation, cinema and hotel services)[238]
 Taxation in Norway
 Oman 15%[239][240] 0% 5% Taxation in Oman
 Pakistan 1.25% (minimum)[241]

20% (small)[242]

29%(corporate)[243]

0% (under Rs 600,000 per annum) 45% (over Rs 5.6 Million per annum) 15% Exempt[244] 0% 18% (+3% for non-registered goods)

15% (services)
0% (basic food items)

Taxation in Pakistan
 Palau 0% — — 0%[245] — Taxation in Palau
 Palestine 15% 5% 15% 14.5% Taxation in Palestine
 Panama 25% 0% 27% 7% (standard)
15% (tobacco)
10% (alcohol and hotels)
5% (essential goods) 		Taxation in Panama
 Papua New Guinea 30% — — — Taxation in Papua New Guinea
 Paraguay 10% 8% 10% No 10% Taxation in Paraguay
 Peru[48] 30% 0% 30% 16% (standard) +
2% (municipal promotional tax) +
0–118% (impuesto selectivo al consumo: liquor, cigarettes, etc.) 		Taxation in Peru
Philippines 30% 0% 35% 6%[246] 12% (standard)
0% (reduced) 		Taxation in the Philippines
 Pitcairn Islands 0% 0%[247] 0% Taxation in the Pitcairn Islands
 Poland[248] 19% (9% for small taxpayer, those with revenue in a given tax year not exceeding the equivalent of €1.2 million and that have "small taxpayer" status)[248] 9% (under 30.000 złotych per year, 0% income tax[249], 9% Health Insurance(non-deductible)[250]) 41% or 45% (32% + 9% health insurance + 4% solidarity tax above 1.000.000 złotych per year)[251]

23.9% or 27.9% (self employed: not deduction first 30.000 złotych, 19% + 4.9% health insurance +4% solidarity tax above 1 million złotych)

19% No[252] 7% 23% (standard)
8% or 5% (reduced rates) 		Taxation in Poland
 Portugal 20% (in mainland) 13% 56.03% (48% income tax + 5% solidarity rate + 11% social security) 28%[3] No[253] 0% 23% (standard)
13% (intermediate)
6% (reduced) 		Taxation in Portugal
 Puerto Rico 20%[254] 0% (16% proposed) 33.34% 11.5% Taxation in Puerto Rico
 Qatar[45] 10% 0% 0% Taxation in Qatar
 Romania 16% (or 1% revenue for micro-entities with at least one employee, or 3% for micro-enterprises with no employees)[255] 35%
(25% social security (CAS) + 10% health insurance (CASS) + 0% income tax for people with disabilities. 0% income tax for IT workers earning less than 10000 RON).
[255] 		45%
(25% social security (CAS) + 10% health insurance (CASS) + 10% income tax after CAS and CASS)

Self employed (PFA):

(25% CAS if earning more than 12 minimum wages in a year + 10% CASS, taxable sum capped at 12 minimum wages per year, e.g. you pay a maximum of 2280 RON as CASS contribution in 2018 if you earn over RON 22,800 for the whole year + 10% income tax)
[255] 		10% 19% (standard)
9% (food, medicines, books, newspapers and hotel services)
5% (reduced)
[48] 		Taxation in Romania
 Russia[45] 20%[2] 13% 22% (earning over 50 million roubles a year)[256]

35% (non-residents)

0%[257] 20% (standard)
10% (books, certain items of food and children goods)
0% (house or flat) 		Taxation in Russia
 Rwanda 30% 0% 30% 18% Taxation in Rwanda
 Saint Kitts and Nevis 33%[258] 0% — Taxation in Saint Kitts and Nevis
Saint Barthélemy 0% 0% 0% 0% Taxation in Saint Barthélémy
 Saint Lucia 30% — — — Taxation in Saint Lucia
 Saint Martin 20% (10% for small taxpayer, those with revenue in a given tax year not exceeding the equivalent of €40,000) — — — Taxation in Saint Martin
 Saint Pierre and Miquelon 33.3% (15% for small taxpayer, those with revenue in a given tax year not exceeding the equivalent of €600,000) — — — Taxation in Saint Pierre and Miquelon
 Saint Vincent and the Grenadines 30% — — — Taxation in Saint Vincent and the Grenadines
 Samoa 27% — — — Taxation in Samoa
 San Marino 17% 9% 35% 0% (standard)
17% (imported goods) 		Taxation in San Marino
 São Tomé and Príncipe 25% — — — Taxation in São Tomé and Príncipe
 Sark 0%[259] 0% 0% 0% There are taxes on property and personal capital, maximum at £6,500. Document duty charged on real estate transfers from estates performed by a Guernsey Advocate. 0% Taxation in Sark
 Saudi Arabia[260] 2.5% (fully Saudi national owned businesses)

2.5–15% (taxed at Zakat rate 2.5% for the Saudi percentage of ownership, 15% for all other ownership)

0% 15% (standard)

5% (real estate transactions rate)

Taxation in Saudi Arabia
 Senegal[48] 25% 0% 50% 20% Taxation in Senegal
 Serbia[261] 15%[262] 10% 25% (additional contributions for state health, pension and unemployment funds)[263] 15% 0% 20% (standard)[264][265]
10% or 0% (reduced rates) 		Taxation in Serbia
 Seychelles 33%[6] 15% 15% Taxation in the Seychelles
 Sierra Leone 25% — — — Taxation in Sierra Leone
 Singapore 17%[266] 0% 22% (+20% tax on pension) 0%[267] 9% Taxation in Singapore
 Sint Maarten 34.5% 12.50% 47.50% 5% Taxation in Sint Maarten
 Slovakia 21% (over €100,000)
15% (under €100,000) 		21% 25%[268] 25% No[269] 0% 23% (standard)[270]
19% (electricity, non-basic foodstuffs, selected catering services)
5% (basic foodstuffs, books, medicines, accommodation services)
 Taxation in Slovakia
 Slovenia[45] 19% 16% 50% 27.5% No[271] 0% 22% (standard)9.5% (food, building and renovation, transport, tickets, media)

5% (books, newspaper)

Taxation in Slovenia
 Solomon Islands 30% — — — Taxation in the Solomon Islands
 Somalia 30%[272] 0% 18% 0% Taxation in Somalia
 South Africa 28%[273] 0% (below threshold) 45% 18% 25%[274] 15%[275] Taxation in South Africa
 South Korea[48] 24.2%[133] 7.8% (6% + 1.8%[276]) 53.4% (42%[277] + 11.4%[276]) No[278] 50%[279] 10% Taxation in South Korea
 South Sudan 30% — — — Taxation in South Sudan
 Spain[45] 25% (mainland)
4% (Canary Islands) 		0% (first €5,550 per year is tax free) 52.3%

47% (State tax)

3.75% (Regional tax in Valencia)

6.45% (Social security, worker contribution)

26% (residents)
19% (non-residents) 		Yes[280] 34% 21% (standard)
10% or 4% (reduced rates) 		Taxation in Spain
 Sri Lanka[45] 15–30%[133] 0% 36% (if annual income is more than LKR 3 million) 12% (standard)
8% or 0% (reduced rates)
 Taxation in Sri Lanka
 Sudan 5% (special exempt companies)

15% (most other companies)[281]

Taxation in Sudan
 Suriname 36%[282] 8% (first SRD2,646 per year is deductible) 38%[283] — Taxation in Suriname
 Svalbard 16%[284][285] 8%[286] 22%[286] 0%[287] 0% 0%[288] Taxation in Norway
 Sweden 20.6%[289] 32% (first US$1,930 per year is deductible) 45.6% (32% average municipality income tax + 20% state income tax)[290][291] 30% No[292] 0% 25% (standard)
12% or 6% (reduced rates)[293] 		Taxation in Sweden
  Switzerland[48] 17.92%[133] 0% 50.14%
10.6%(mandatory social security contributions)[294]
11.5% (federal)[295]
28.025% (cantonal, Geneva)[296]
9.69% (communal, Avully and Chancy, both canton of Geneva)[296]
3.04% (church tax, roman catholic and protestant in Geneva)[296] 		Yes[297] 0%[298] 8.1% (standard)
3.8% or 2.5% (reduced rates) 		Taxation in Switzerland
 Syria[45] 22% 5% 15% — Taxation in Syria
 Taiwan[45] 20%[299] 5% 40% 20%[300] 5%[301] Taxation in Taiwan
 Tajikistan[302] 13% (residents)
25% (non-residents) 		5% 13% (residents)
25% (non-residents) 		18% Taxation in Tajikistan
 Tanzania 30% 15% 30% 14% Taxation in Tanzania
 Thailand 20% 0% 35% 7% Taxation in Thailand
 Togo 27% — — — Taxation in Togo
 Tokelau 0% — — — Taxation in Tokelau
 Tonga 25% — — — Taxation in Tonga
 Trinidad and Tobago 30% 0% 25% (annual chargeable income less than $1 million)
30% (annual chargeable income over $1 million) [303] 		12.5% Taxation in Trinidad & Tobago
 Tunisia[48] 30% 0% 35% 18% (standard)
12% or 6% (reduced rates) 		Taxation in Tunisia
 Turkey[45] 25% 15% 40% No[304] 1–30%[305] 20% (standard)
10% (clothing)
1% (certain food items)[66] 		Taxation in Turkey
 Turkmenistan 8% — — — Taxation in Turkmenistan
 Turks and Caicos Islands 0% — — — Taxation in the Turks and Caicos Islands
 Tuvalu 30% — — — Taxation in Tuvalu
 Uganda 30%[306] — — 18%[307] Taxation in Uganda
 Ukraine 18%[308] 0%[309] 18% (common rate)
20% (some activities)
22% (social security)[310] 		18% 2% (non-refundable turnover tax during martial law) Taxation in Ukraine
 United Arab Emirates 0% (free zone companies,[311] as well as mainland companies with less than 375,000 AED a year in profit,[312] may need to fill out a tax return)

9% (for mainland companies with a net profit over AED 375,000 annually, taxation paid to other countries credited towards UAE taxation, tax return required)[312]

0%[313] 0%[314] 5%[313] Taxation in the United Arab Emirates
 United Kingdom[315] 19–25%[316] 0% (up to £12,570)[317] 62% (40% income tax on the £100–125k band + 20% phase-out of personal allowance + 2% employee National Insurance) [318][319] 24%[320] No[321] 40%[322] 20% (standard)
5% (home energy and renovations)
0% (life necessities, public transport, children's clothing, books and periodicals)[323] 		Taxation in the United Kingdom
 United States 21% (federal)
up to 21% (with credit of tax paid towards other countries) 		10% (federal) +
0–3.07% (state) +
0–3.8398% (local) (federal standard deduction of 12550 USD for single taxpayers) 		50.3% California (37% (federal)[324] + 13.3% (state))

37% Texas (37% + 0%)

20% No[325] 0–3.64% [326] 18–40% (federal with offset against individual State Estate and Inheritance Taxes)[327] 0–11.5% Taxation in the United States
 Uruguay[48] 25% 0% 36%[328] 22% (standard)
11% (lowest)
0% (extent) 		Taxation in Uruguay
 Uzbekistan[48] 12% (standard)
20% (banks and mobile communication operators) 		12% 0–15% Taxation in Uzbekistan
 Vanuatu 0% 0% 0% 0% Taxation in Vanuatu
 Venezuela[48] 34% 0% 34% 16% (standard)
8% (reduced) 		Taxation in Venezuela
 Vietnam[45] 20% 5% 35%[329] 10%[330] 10% Taxation in Vietnam
 British Virgin Islands 0%[331] 0% — Taxation in the British Virgin Islands
 U.S. Virgin Islands 21–38.50%[332] Taxation in the United States Virgin Islands
 Wallis and Futuna 0% 0% 0% 0% Taxation in Wallis and Futuna
 Yemen 20%[333] 10% 15% 2% Taxation in Yemen
 Zambia 30%[334] 10% 30% 16% Taxation in Zambia
 Zimbabwe 25% 0% 45% 15% (standard)
0% (on selected items) 		Taxation in Zimbabwe

See also

[edit]

Notes

[edit]

References

[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

List of countries by tax rates

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from Grokipedia
Lists of countries by tax rates compile and rank sovereign states based on their statutory marginal rates for principal levies, such as top personal income taxes, corporate income taxes, and standard value-added taxes (VAT) or equivalent sales taxes. These rankings, often derived from official government data aggregated by organizations like the OECD and independent analysts, highlight policy divergences where high rates support expansive public spending—evident in Denmark's 55.9 percent top personal income tax rate—while lower rates in places like Hungary (15 percent) prioritize competitiveness to draw labor and capital. Corporate tax rates exhibit comparable breadth, with statutory levels varying from below 10 percent in jurisdictions like and to over 30 percent in outliers such as (35 percent), influencing multinational location decisions amid global capital mobility. Consumption taxes, primarily VAT, further underscore contrasts, reaching 27 percent in and 25 percent in and , whereas some economies impose no standard rate to minimize distortions on trade and household spending. Such lists inform empirical evaluations of efficacy, revealing that competitive tax environments—characterized by lower, simpler rates—tend to foster investment and growth by countering incentives for , though debates persist over effective versus statutory burdens and the role of deductions in altering real incidences. Rankings exclude comprehensive effective rates, which incorporate enforcement, avoidance, and economic behavior, but statutory comparisons remain vital for benchmarking reforms and anticipating shifts like the OECD's global minimum tax framework.

Primary Tax Categories

Personal Income Tax Rates

Personal income tax (PIT) rates represent the statutory marginal tax applied to the highest bracket of an individual's , typically after deductions and exemptions. These rates are progressive in most jurisdictions, escalating with income levels, and serve as a primary source for governments funding public services. Globally, top PIT rates range from 0% in territories like , , and several Gulf states (e.g., , ) that impose no tax on residents, to over 55% in high-welfare economies such as and . For instance, in Sweden, marginal tax rates on higher incomes often reach 50-55% including all components, contrasting with the United States, where they top at about 37% federal plus state taxes, rarely exceeding 45-50% total. These variations reflect policy choices balancing needs against incentives for work, investment, and migration; empirical studies link higher top rates to reduced high-earner mobility and potential Laffer-curve effects, though causation varies by enforcement and economic context. In 2026, among countries, the average top PIT rate stands at approximately 42.8% for , with non-OECD jurisdictions often lower to attract capital. levies one of the highest rates at 55.9%, incorporating municipal surcharges, closely followed by at approximately 55.95% (national 45% plus local inhabitant tax and surtaxes), at 55.4% (including high-income surtaxes), and at 55%. 's top rate has been reduced to 52% effective 2026, down from prior levels around 57%, and applies up to 53% with solidarity surcharges. These figures exclude employee social security contributions, which can push combined labor burdens higher—e.g., Belgium's overall exceeds 52% when included.
CountryTop Marginal PIT Rate (2026)
55.9%
55.4%
55.0%
53.0% (incl. surcharges)
52.3%
At the lower end, several countries maintain flat or minimal top rates to foster competitiveness. and apply 10%, the lowest in , while holds at 15%. Globally, zero-rate jurisdictions include (0%), (0%), and (0% for non-French residents), where investment income such as dividends and interest faces 0% tax as well, often compensated by indirect taxes like VAT or property levies. These low rates correlate with higher GDP growth in some cases, per competitiveness indices, though data on evasion and base erosion complicates direct causality.
Country/TerritoryTop Marginal PIT Rate (2026)
0%
0%
UAE0%
10%
10%
Data discrepancies arise from inclusion of surtaxes, local add-ons, or social levies; for instance, tax wedges (PIT plus payroll taxes) average 34.9% across members in 2024, higher than pure PIT figures. Rates are subject to annual fiscal adjustments, with recent trends showing modest hikes in amid post-pandemic deficits, contrasted by stability or cuts in emerging markets. Verification from primary government gazettes or databases like PwC's Worldwide Tax Summaries confirms these statutory tops, though effective rates—factoring deductions—often fall 10-20% lower for high earners.

Corporate Income Tax Rates

Corporate income tax rates represent the statutory top marginal rates applied to corporate profits, typically after allowable deductions but before credits, and often combined with subnational taxes in federal systems. These rates serve as a key indicator of taxation competitiveness, influencing decisions and capital allocation, though effective rates realized by firms are generally lower due to incentives, exemptions, and base erosion practices. As of 2024, the unweighted average statutory corporate tax rate across 181 jurisdictions worldwide stands at 23.51 percent, rising to 25.67 percent when weighted by , reflecting higher rates in larger economies. Within the (OECD), the average combined statutory rate for 2025 is 24.2 percent, with reductions in rates slowing globally amid pressures from base erosion concerns and the implementation of a 15 percent global minimum tax under Pillar Two rules. Jurisdictions with the highest rates impose significant burdens on , potentially deterring domestic reinvestment. Comoros levies 50 percent, the global maximum, followed by at 37.5 percent and at 36 percent. Other high-rate countries include , , , , and , all at 35 percent. Conversely, low-rate environments attract multinational headquarters and profit shifting. applies the lowest rate at 8 percent, with , the , and at 9 percent. Several others, including , , , , , and , maintain 10 percent rates.
RankHighest Rates (2024)Rate (%)Lowest Rates (2024)Rate (%)
1508
237.59
3369
4359
53510
63510
73510
83510
93410
103310
Table sourced from statutory top marginal rates, combined where subnational taxes apply; excludes special regimes. Notable 2025 adjustments include raising from 20 to 22 percent and from 15 to 16 percent, while introduces a 15 percent minimum for large multinationals. retains the OECD's highest combined rate at 36.1 percent.

Value-Added and Sales Tax Rates

Value-added tax (VAT), also referred to as goods and services tax (GST) in certain jurisdictions, is an indirect applied at each stage of production and distribution based on the , with businesses collecting it from consumers and remitting net amounts to governments after deducting input taxes. Sales taxes, prevalent in countries like the , are typically levied only at the final retail sale without crediting prior-stage taxes. These taxes generate significant revenue for public spending, often comprising 20-30% of total tax collections in countries, though rates and exemptions vary to balance revenue needs against economic competitiveness and regressivity concerns. Standard rates worldwide typically fall between 5% and 25%, though outliers exist; the enforces a minimum of 15% for member states' standard rates to harmonize the internal market, yielding a bloc average of 21.8% as of January 2025. maintains the highest EU rate at 27%, applied to most excluding reduced rates for items like books (5%) and pharmaceuticals (0%). Non-EU examples include Norway's 25% VAT and New Zealand's 15% GST, while developing nations like impose an exceptionally high 50% on certain luxury imports to protect domestic industries. The stands out with no federal VAT or , delegating such levies to states where combined rates average 7% but range from 0% in states like to over 10% in parts of including local add-ons; this decentralized approach avoids a uniform national but results in interstate compliance complexities. In , the federal GST rate is 5%, harmonized with provincial sales taxes (HST) reaching up to 15% in Atlantic provinces. Reduced or zero rates commonly apply to necessities like unprocessed , , and healthcare to mitigate impacts on low-income households, though empirical studies indicate these exemptions often benefit higher earners disproportionately due to broader consumption patterns.
Country/TerritoryStandard Rate (%)TypeNotes
Bhutan50Sales TaxApplies to luxury goods; higher than standard for imports.
Hungary27VATHighest in EU; reduced rates for food (18%), tourism (18%).
Finland25.5VATApplies broadly; reduced for food (14%), books (10%).
Croatia/Denmark/Sweden25VATEU standard; various reduced rates (e.g., Denmark: 0% for newspapers).
Greece/Iceland24VAT/GSTGreece: EU member; Iceland non-EU.
United States (federal)0NoneState sales taxes average 7%; no national VAT.
United Arab Emirates/Oman/Taiwan5VAT/Sales TaxUAE: Introduced 2018; Taiwan: Business tax equivalent.
Singapore9GSTPlanned increase to 9% from 2024.
Switzerland/Liechtenstein8.1VATSwiss: Federal; reduced for food (2.6%).
Iran9VATApplies to most goods.
This table highlights extremes and representative cases; full compilations show over jurisdictions with rates derived from fiscal , subject to annual adjustments for or policy shifts.

Property and Wealth Tax Rates

Property taxes, also known as taxes, are recurrent levies imposed by most countries on the assessed value of , buildings, and sometimes other immovable assets, typically administered at local or municipal levels with rates ranging from 0.1% to 2% of assessed value depending on and property type. Effective rates, accounting for assessments and exemptions, often fall between 0.5% and 1.5% in nations, though variations exist; for instance, in , the imposes an average effective rate equivalent to 2.57% of private capital stock, while Hungary's is as low as 0.008%. Countries without recurrent property taxes include , , , the , , , , and , where alternative fees or no such levies apply to ownership. Wealth taxes, distinct from property taxes, target an individual's assets (total minus debts) above exemption thresholds, often annually, but remain rare globally due to administrative complexity and risks; as of 2025, only a handful of countries maintain taxes. In , applies 1.0% on exceeding NOK 1.76 million (about USD 160,000) and 1.1% above NOK 20.7 million; levies progressive rates up to 3.5% on over EUR 700,000, with regional variations and a solidarity tax up to 3.5% above EUR 3 million; imposes cantonal rates from 0.02% to 1.03% on worldwide assets. Outside , charges 1.5% until 2026 (then 1%), 0.5% to 1.5% (phasing down), and 2.4%, while others like limit to up to 1.5% above EUR 1.3 million.
CountryNet Wealth Tax Rate (Headline/Max)Threshold/ExemptionsSource
1.0%-1.1%> 1.76M; higher tier > 20.7M
0.16%-3.5%> EUR 700,000; solidarity > EUR 3M
0.02%-1.03% (cantonal)Varies by canton
1.5% (to 2026), then 1%Progressive thresholds
0.5%-1.5%Phasing to 0.25% by 2027
Most nations, including the , , , and , impose no net wealth tax, relying instead on , , or capital gains taxes for asset-based . Recent trends show repeals or limitations, as in France's 2018 shift from net to real estate-only wealth tax, reflecting of low yields relative to economic distortions.

Measurement and Comparative Framework

Data Sources and Recent Updates

The primary sources for compiling statutory tax rates across countries include databases maintained by international organizations and professional services firms, which aggregate data from national tax authorities. The Organisation for Economic Co-operation and Development () provides comprehensive, comparable data on corporate income tax rates, personal income tax structures, and value-added tax (VAT) rates through its Tax Database and Corporate Tax Statistics, with the latest global revenue statistics updated in July 2025 covering trends up to 2023 and preliminary 2024 figures. The OECD's Taxing Wages 2025 publication details effective tax wedges for various household types, incorporating 2024 data showing marginal increases in average OECD tax burdens. Professional firms offer detailed, jurisdiction-specific summaries verified by local experts. 's Worldwide Tax Summaries Online covers corporate and individual taxes in 148 territories, with quick charts on rates like corporate income tax (CIT) and withholding taxes reflecting statutory rules as of the most recent legislative changes, typically updated multiple times annually. Deloitte's International Tax Source similarly provides tax rates and highlights for over 130 jurisdictions, emphasizing current statutory provisions from government sources. Think tanks supplement with competitiveness-focused analyses drawing from these bases. The Tax Foundation's 2025 International Tax Competitiveness Index, released on October 19, 2025, ranks 38 countries on tax system structures, incorporating updates to statutory rates and incorporating post-2023 reforms in areas like digital services taxes. The (IMF) contributes through Government Finance Statistics, focusing more on aggregate tax revenues as a of GDP (e.g., global averages around 17.1% in 2021), with the World Revenue Longitudinal Database updated as of November 2024 for cross-country fiscal trends. These sources prioritize official statutory data but may lag on effective rates due to reliance on self-reported national figures; cross-verification across multiple outlets is essential for accuracy, as discrepancies arise from differing interpretations of surtaxes or deductions. Recent updates reflect 2024-2025 reforms, such as OECD-noted adjustments in corporate rates amid global minimum tax implementations under Pillar Two.

Statutory Rates Versus Effective Rates

Statutory tax rates denote the headline or marginal rates enshrined in national , applying nominally to or profits without adjustments for reliefs or incentives. These rates serve as benchmarks for policy announcements and international comparisons but often fail to reflect real-world fiscal incidence. Effective tax rates, conversely, capture the net burden after incorporating deductions, credits, exemptions, deferrals, and behavioral responses such as income shifting or timing, yielding a more accurate gauge of economic incentives and revenue outcomes. The divergence arises from legislative complexities designed to stimulate activity—e.g., accelerated or R&D allowances—which systematically erode the gap between announced and realized taxation, particularly for mobile capital or high earners. For corporate income taxes, statutory rates averaged 21.1% across countries in 2024, stable after decades of decline, yet effective marginal tax rates (EMTRs) on new investments frequently range 10-20 percentage points lower due to base erosion via profit allocation to low-tax affiliates or domestic incentives. , the federal statutory rate stands at 21% (plus state averages of ~6%), but multinational firms reported effective rates of 13.8% in 2022, influenced by global intangible low-taxed income rules and foreign-derived deductions. exemplifies the disparity: a 12.5% statutory rate yields effective rates near 4-6% for certain tech sectors via regimes, drawing investment despite scrutiny. Such reductions underscore causal links between effective burdens and locational decisions, as firms prioritize post-tax returns over nominal headlines. Personal income tax effective rates exhibit similar variances, moderated by progressive brackets, family credits, and avoidance tactics like charitable contributions or . OECD top statutory marginal rates reached 55.9% in (2023, including surtaxes), but effective rates for top decile earners averaged 40-45% after allowances, with further erosion from capital gains preferences. The tax wedge—encompassing tax, employee/employer social contributions as a share of labor costs—provides an aggregate effective metric; for a single average-wage worker in 2023, it spanned 7.3% in to 52.7% in , revealing how levies amplify burdens beyond headline income rates. In low-statutory environments like (35% top rate), effective burdens remain subdued at ~20% for median earners due to limited deductions, contrasting high-statutory Nordic models where compliance and broad bases sustain elevated realization.
CountryCorporate Statutory Rate (2024)Estimated Effective Corporate Rate (Recent Avg.)Personal Top Statutory Rate (2023)Avg. Effective Tax Wedge (Single Worker, 2023)
21% federal + ~6% state13-15%37% federal + state29.8%
12.5%4-6% (select sectors)40%26.3%
22%~18%55.9%35.4%
25%~20%50%52.7%
This table highlights systemic undercutting of statutory figures, informed by empirical modeling rather than self-reported data, which can inflate discrepancies via aggressive planning. Policymakers increasingly prioritize effective metrics for reforms, as statutory hikes without base broadening risk revenue shortfalls from evasion or relocation.

Overall Tax Burden Metrics

The overall tax burden on an is quantified primarily through the tax-to-GDP ratio, defined as total tax revenues—including personal and corporate taxes, value-added taxes, taxes, and compulsory social contributions—divided by . This metric captures the aggregate fiscal extraction by government relative to economic output, serving as a proxy for the scale of funding via ation. In 2023, the average tax-to-GDP ratio across Organisation for Economic Co-operation and Development () countries stood at 33.9%, reflecting a slight decline of 0.1 percentage points from the prior year amid varying post-pandemic recovery dynamics. Among OECD members, France recorded the highest ratio at 43.8%, driven by extensive social welfare systems funded through progressive income taxes and contributions, while had the lowest at 17.7%, attributable to structural challenges in tax administration and a reliance on informal economic activity. Other high-burden jurisdictions included at 43.4%, at 42.8%, and at 42.7%, predominantly in where social contributions constitute a large share of revenues. The , by contrast, reported 25.2%, ranking 32nd out of 38 OECD countries and below the average, due in part to lower reliance on consumption and taxes compared to peers.
CountryTax-to-GDP Ratio (2023)
43.8%
43.4%
42.8%
42.7%
......
25.2%
17.7%
This indicator's comparability stems from OECD methodologies standardizing definitions across jurisdictions, though it excludes non-tax revenues such as user fees or profits, potentially understating total government extraction in resource-dependent economies. Globally, non- developing countries often exhibit lower ratios—averaging around 15-20% per World Bank data—due to weaker enforcement and narrower tax bases, though upward trends in emerging markets like those in have been observed through base-broadening reforms. Limitations include its aggregate nature, which masks distributional effects or behavioral responses to taxation, and sensitivity to GDP fluctuations rather than effective incidence on households or firms.

Global Rankings and Variations

Highest Tax Rate Jurisdictions

Denmark maintains the highest combined top marginal personal tax rate globally at 55.9 percent in 2025, incorporating national and municipal levies applied to exceeding approximately DKK 588,900 (about $85,000 USD). This rate reflects Denmark's progressive system, where lower brackets start at 12 percent national tax plus municipal surcharges averaging 25 percent, escalating to the top tier. follows closely with a 55.4 percent top rate on above €168,994, comprising a 45 percent national bracket plus social surcharges and a potential 3 percent exit tax for high earners, though effective rates can vary with deductions. levies 55 percent on over €1 million, combining a 50 percent federal rate with provincial multipliers and solidarity contributions. Finland's top rate stands at 56.95 percent for incomes above €92,007, including a 34 percent state tax, municipal taxes averaging 20 percent, and church levies where applicable, underscoring Nordic reliance on high personal ation to fund extensive welfare systems. imposes a 55.97 percent combined rate, blending a 45 percent national with local inhabitant taxes up to 10 percent on high earners exceeding ¥40 million annually. These rates, drawn from statutory frameworks, often exceed those in developing nations like Coast's 60 percent headline rate, which applies narrowly and faces enforcement challenges, resulting in lower effective burdens. In corporate taxation, enforces the world's highest statutory rate at 50 percent on profits exceeding specific thresholds, though its small economy limits broader implications; , a U.S. , reaches 37.5 percent including surtaxes. Among major economies, and both apply 35 percent, while European leaders like (effective 30-33 percent combined federal and trade tax) and (around 32 percent with regional add-ons) cluster higher than the average of 23.6 percent. Value-added tax (VAT) rates peak in at 27 percent standard rate, applied uniformly to most goods and services without broad exemptions. follows at 25.5 percent, with , , and at 25 percent, reflecting EU minimum compliance but voluntary highs to bolster revenue without progressive income structures.
JurisdictionTop Marginal Personal Income Tax RateCorporate Tax RateStandard VAT Rate
55.9% (2025)22%25%
55.4% (2025)25%20%
55% (2025)23-25% (varies by province)20%
56.95%20%25.5%
15% (flat)9%27%
These figures represent statutory marginal rates and exclude deductions, credits, or evasion factors that lower effective taxes; data from and emphasize combined national-subnational burdens for comparability. High-rate jurisdictions like sustain models through cultural compliance and limited , though empirical studies link such levels to reduced .

Lowest Tax Rate Jurisdictions

Several jurisdictions impose no tax on individuals, relying instead on revenue from natural resources, , fees, or indirect taxes. These include oil-exporting Gulf states such as the (UAE), , , , and , where tax rates remain at 0% as of 2025, including on investment income such as dividends and interest, supplemented by corporate taxes on foreign entities or value-added taxes (VAT) introduced in recent years. Similarly, microstates like apply 0% tax to non-French residents, encompassing dividends and interest, while territories such as the and maintain 0% rates on both personal and corporate income, with no tax on such investment income, positioning them as prominent offshore financial centers. These structures attract high-net-worth individuals and businesses seeking to minimize tax liabilities on passive income, though residents may face U.S. or home-country taxation on worldwide income. Caribbean and Pacific territories exemplify zero-tax models, with the , Saint Kitts and Nevis, and Antigua and Barbuda levying 0% personal income taxes, including on dividends and interest, offset by business license fees and a 12% VAT in the Bahamas. The (BVI) and similarly feature 0% corporate tax rates, with no personal income tax including on investment income, funding governments through stamp duties and import duties. , a Channel Island, applies 0% corporate tax to most activities except banking (10%), alongside 0% personal income tax above a basic allowance. Such jurisdictions often exhibit high GDP per capita from and but face international scrutiny for facilitating , prompting measures like economic substance rules. Among sovereign nations, Vanuatu imposes 0% personal and corporate income taxes, deriving revenue from citizenship-by-investment programs and VAT at 15%. Brunei, reliant on oil, maintains 0% personal income tax but levies up to 18.5% corporate tax on non-oil sectors. In Europe, Andorra features a top personal income tax rate of 10% and corporate rate of 10%, among the continent's lowest, with no wealth or inheritance taxes. Jurisdictions such as Singapore and Hong Kong apply territorial tax systems that exempt foreign-sourced dividends and interest, while Malta offers 0-15% rates on foreign investment income under low-tax resident plans. These low-rate environments correlate with inflows of foreign capital, though sustainability depends on global tax reforms like the OECD's minimum tax, which may erode advantages for multinationals.
JurisdictionPersonal Income Tax RateCorporate Tax RateVAT/Sales Tax RatePrimary Revenue Sources
United Arab Emirates0%9% (on profits > AED 375,000)5%Oil, fees, tourism
Cayman Islands0%0%NoneFinancial services fees, imports
Bahamas0%0%12%Tourism, real estate, licenses
Bermuda0%0%NoneInsurance fees, payroll tax
Qatar0%10%NoneNatural gas exports
British Virgin Islands0%0%NoneCompany registration, duties
Monaco0% (non-French residents)25% (French firms)20% (French VAT)Tourism, banking, real estate
Europe exhibits some of the highest tax burdens globally, with countries averaging a tax-to-GDP ratio exceeding 40 percent in many cases, driven by progressive taxes topping 50 percent in nations like and , alongside (VAT) rates often between 20 and 27 percent, as seen in Hungary's 27 percent standard rate and Sweden's 25 percent. Corporate income tax (CIT) rates in the region have stabilized around 23-25 percent on average, following a decade-long decline that halted amid post-pandemic fiscal pressures, with more jurisdictions raising rates than cutting them in 2024. Property taxes remain moderate but significant in countries like the , where they constitute 2.57 percent of private capital stock, supporting expansive welfare systems that correlate with lower in empirical studies, though causal links to growth stagnation are debated. In contrast, features lower overall tax burdens, with the at approximately 27 percent of GDP in , relying on a federal CIT of 21 percent combined with state-level variations, and sales taxes averaging under 7 percent at the state level without a national VAT. Canada's federal-provincial yields similar patterns, with total tax-to-GDP around 33 percent, emphasizing deductions and credits that reduce effective rates below statutory levels. Trends here show resistance to broad rate hikes, with state-level reforms focusing on competitiveness, as evidenced by multi-state cuts in 2024-2025, amid evidence that lower burdens attract investment flows from higher-tax neighbors. Asia-Pacific regions display wide variance, with advanced economies like and maintaining CIT rates near 30 percent and tax-to-GDP ratios of 37 and 28 percent respectively, while emerging markets such as and hover around 25-30 percent CIT with VAT equivalents of 5-18 percent, reflecting developmental priorities over redistribution. Southeast Asian hubs like impose near-zero effective CIT through incentives, fostering regional investment shifts, whereas China's combined national-local taxes yield effective burdens around 25 percent of GDP. Recent trends include gradual CIT hikes in response to global minimum tax initiatives, though competition persists, with empirical data linking lower rates to higher FDI inflows in non-OECD . Latin America and sub-Saharan Africa generally exhibit lower tax capacities, with regional tax-to-GDP averages of 21.7 percent and under 17 percent respectively, featuring CIT rates of 25-35 percent but weak enforcement yielding effective rates below 15 percent in many cases, and VAT rates of 12-19 percent often undermined by exemptions. Property taxes remain underdeveloped, contributing less than 1 percent of GDP continent-wide, limiting infrastructure funding. Trends show incremental reforms, such as Brazil's 2024 VAT overhaul aiming for broader bases, but persistent evasion and informal economies constrain revenue, with World Bank analyses attributing stagnation to institutional weaknesses rather than rate levels alone. Globally, patterns reveal a divide between high-tax welfare-oriented models in and competitive, growth-focused systems elsewhere, with CIT statutory averages declining to 23.73 percent among members by 2023 before stabilizing. Overall burdens as a share of GDP trend higher in developed regions (34 percent average) versus emerging (under 20 percent), correlating with slower growth in high-burden areas per cross-country regressions, though endogeneity complicates . Recent reversals in rate cuts, influenced by -led BEPS frameworks, signal potential convergence, yet jurisdictional competition sustains lows in tax havens across regions.

Economic Consequences of Tax Policies

Empirical studies utilizing cross-country and natural experiments consistently indicate that higher marginal rates exert a negative causal influence on rates. For instance, exogenous increases in taxes equivalent to 1% of GDP have been estimated to reduce real GDP by 2-3% on impact, with effects persisting over several years, based on models incorporating U.S. shocks from 1947-2007. Similarly, a of cut effects across multiple studies finds that a 10 reduction in the corporate tax rate boosts annual GDP growth by approximately 0.78%, drawing from panel regressions controlling for fixed effects and macroeconomic variables. Corporate tax rates demonstrate a particularly robust inverse relationship with business investment and foreign direct investment (FDI). Cross-country evidence from enterprise surveys in over 80 countries reveals that a 10 percentage point increase in effective corporate tax rates correlates with a 2.2 percentage point decline in aggregate investment rates and a 1.6 percentage point drop in FDI inflows, using instrumental variable approaches to address endogeneity. OECD analysis of firm-level data from 2000-2018 confirms this sensitivity, showing that higher statutory corporate rates reduce tangible fixed asset investments, though the elasticity has moderated post-2008 financial crisis due to factors like lower interest rates and policy reforms. These distortions arise from taxes altering the user cost of capital, leading firms to underinvest in productive assets and shift toward less efficient alternatives, as evidenced by European Commission models estimating 4% capital misallocation from inter-asset tax biases. Top marginal personal income tax rates also link negatively to growth, primarily through reduced labor supply, entrepreneurship, and innovation incentives. Panel data from 26 countries over 1985-2015, employing dynamic panel GMM estimation, shows that a 10 rise in top rates lowers annual GDP growth by 0.2-0.5 percentage points, after controlling for public spending and institutional factors. Recent cross-country regressions further correlate declines in top rates with accelerated medium-run growth, with binned scatterplots illustrating steeper growth trajectories in low-tax reformers versus high-tax maintainers from 1965-2010. While some correlations appear mixed—such as historical U.S. episodes where high top rates coincided with growth booms—causal analyses attribute these to variables like wartime mobilization or technological shifts rather than itself, underscoring that marginal rate hikes distort incentives without commensurate revenue gains beyond the Laffer peak.
Study FocusKey FindingMethodologySource
Corporate Taxes & 10pp tax increase reduces by 2.2ppCross-country IV regression (80+ countries)
Tax Shocks & GDP1% GDP tax hike lowers GDP by 2-3% VAR (U.S., 1947-2007)
Top Marginal Rates & Growth10pp increase cuts growth by 0.2-0.5ppDynamic panel GMM (, 1985-2015)
Corporate Cuts & GDP10pp cut raises growth by 0.78% of panels
These patterns hold across methodologies, though endogeneity from reverse (growth prompting tax hikes) is mitigated via instruments like political cycles; nonetheless, high-tax regimes often sustain growth only through compensatory borrowing or spending restraint, which empirical decompositions show as insufficient to offset incentive losses in open economies.

Incentives, Migration, and Behavioral Effects

High marginal tax rates on labor and capital income create disincentives for work effort, , and risk-taking, as individuals weigh after-tax returns against alternative uses of time and resources. Empirical analyses of the U.S. reveal that reductions in top marginal rates from 50% to 28% elicited behavioral responses, including increased labor supply and reported , with elasticities of taxable income estimated at 0.4 to 0.7 for high earners. Similarly, state-level tax hikes in via Proposition 30 in , raising top rates by up to 3 percentage points, prompted high earners to reduce earnings through diminished labor supply rather than solely income shifting, with semi-elasticities around 1.2 for the top 1%. These responses align with first-principles expectations that taxes on marginal productivity erode incentives, particularly for those facing the highest rates, leading to suboptimal economic output. Tax policies also drive migration, especially among high-skilled and wealthy individuals who can relocate to lower-tax jurisdictions, resulting in brain drain and . The Henley Private Wealth Migration Report 2025 forecasts a record 142,000 millionaires relocating globally, with the projected to experience the largest net loss of 16,500 due to factors including recent increases on non-domiciled residents and capital gains. In , the 2007 introduction of a national accelerated outflows of top holders, but its in 2007 reduced their migration propensity by approximately 30%, equivalent to a semi-elasticity of -0.5 to -1.0 per increase in the . Cross-state U.S. evidence from New Jersey's 2004 millionaire , which added 2.6 s to top rates, confirms accelerated out-migration of affected households, eroding the intended gains within years. Broader behavioral effects include heightened tax avoidance, evasion, and shifts to untaxed activities, which undermine revenue projections and distort . Long-run studies indicate that sustained high marginal rates suppress and , with top earners exhibiting elasticities of to tax rates exceeding 1.0, as they reallocate toward tax-favored assets or jurisdictions. In international contexts, "superstar" inventors—key drivers of technological progress—respond strongly to top statutory rates, with a 1 increase prompting relocation probabilities to rise by 0.3-0.5%, contributing to brain drain from high-tax nations like those in parts of and . Such dynamics illustrate how elevated rates can initiate a feedback loop: initial revenue boosts give way to base erosion as mobile factors exit, consistent with from historical rate cuts that enhanced both activity and collections via the arithmetic and effects.

Sustainability of High-Tax Models

High-tax economic models, particularly those funding expansive welfare states through elevated , corporate, and levies, confront sustainability risks stemming from diminished incentives, labor mobility, and erosion via behavioral adjustments. Empirical analyses indicate that tax increases exert a negative and persistent impact on real GDP per capita, as higher rates discourage , , and gains essential for sustaining public expenditures. This dynamic aligns with principles, where rates surpassing optimal thresholds—often observed above 50-70% marginal levels—yield declining revenues due to evasion, relocation, and reduced economic activity, as substantiated by six decades of U.S. data showing elastic responses among high earners. Prominent cases underscore migration-driven challenges. France's 2012 imposition of a 75% supertax on annual incomes exceeding €1 million triggered outflows of affluent residents, with over 12,000 millionaires departing between 2000 and 2016, contributing minimally to revenue while exacerbating fiscal strains. The policy's repeal in 2015 reflected its counterproductive effects, including stalled investment and talent drain. In Norway, a 2023 wealth tax hike to 1.1% prompted exodus among top taxpayers, with 100 of the 400 wealthiest individuals—holding roughly 50% of their group's assets—relocating, underscoring capital flight's toll on the tax base. Denmark abolished its wealth tax in 1997 after analogous issues, including low yields (under 0.3% of GDP) and high enforcement costs that outweighed benefits. Nordic exemplars, frequently invoked as high-tax successes, reveal adaptations bolstering viability through rate reductions and market liberalization rather than unyielding fiscal burdens. Sweden's early 1990s banking crisis, amid peak marginal rates exceeding 80%, spurred a comprehensive 1991 tax reform slashing top rates and broadening bases, alongside deregulation, which catalyzed recovery with GDP per capita rising over 50% by 2019. Persistent high overall tax-to-GDP ratios (around 43%) persist, yet reforms curbed wealth taxes and enhanced competitiveness, averting deeper stagnation. Cross-country evidence reinforces that lower-tax regimes correlate with superior growth trajectories; World Bank data from 20 nations show rapid investment and productivity expansion in low-tax cohorts versus high-tax peers. Longer-term pressures amplify vulnerabilities: aging demographics inflate entitlement costs while shrinking workforces, global tax competition erodes mobility barriers, and entrenched high rates foster dependency ratios incompatible with subpar growth (e.g., averages mask France's 43.8% tax-to-GDP yielding tepid expansion). Models endure via offsetting factors like cultural trust and resource endowments (e.g., Norwegian oil), but empirical patterns suggest reliance on efficiency reforms over escalating levies for enduring fiscal health.

Policy Debates and Criticisms

Flat Taxes Versus Progressive Systems

A flat imposes a single marginal on all levels of , typically after a standard exemption or allowance, contrasting with progressive systems that apply escalating rates across brackets to achieve greater redistribution. Countries adopting flat taxes include at 10% on as of 2025, with a 10% , and remnants in like Hungary's 15% rate, though some nations such as have introduced limited progressivity atop a base rate now at 22%. Progressive systems, prevalent in and , feature top marginal rates exceeding 40% in jurisdictions like (45%) and the (37% federal plus state), aiming to mitigate disparities but often entailing higher administrative complexity. Proponents of flat taxes argue they minimize economic distortions by maintaining constant marginal incentives, encouraging labor participation, , and without the "cliff effects" of bracket thresholds that can deter additional earnings in progressive regimes. Empirical analyses of post-communist reforms in the —Estonia implementing a 26% in 1994, followed by and —indicate accelerated GDP growth, with Estonia's economy expanding over 5% annually in the subsequent decade amid simplified compliance and reduced evasion. Similarly, estimates suggest a shift to a pure could boost long-term savings by 10-20%, enhancing and . Critics counter that flat taxes exacerbate inequality by imposing proportionally higher burdens on lower earners post-exemption, though evidence from reviews shows limited aggregate inequality spikes in adopting nations due to base broadening and evasion reductions. Progressive taxation, by contrast, facilitates fiscal redistribution, funding social programs that empirical studies link to reduced Gini coefficients in high-tax peers, yet it correlates with diminished labor supply among high earners and , as marginal rates above 50% (including taxes) approach revenue-maximizing thresholds per dynamics observed in historical U.S. data. Reforms toward flat structures in (15% since 2011) and have yielded employment gains and administrative savings, with implicit labor tax rates stabilizing or declining, underscoring causal links between rate uniformity and behavioral responses like increased formal work. While progressive advocates cite equity imperatives, cross-country regressions reveal no robust inverse relation between progressivity and growth once endogeneity is controlled, with flat-tax adopters often outperforming progressive peers in post-reform inflows. Debates persist over , as flat systems may underperform in during downturns without automatic stabilizers inherent to progressive brackets, though from Bulgaria's 10% regime shows resilient collection via broadened bases. Conversely, progressive models face evasion pressures, with U.S. IRS audits revealing higher noncompliance at top brackets, amplifying deadweight losses estimated at 20-30% of in complex codes. Overall, favors flat taxes for in dynamic economies, privileging growth over coerced equality, though hybrid approaches in places like balance incentives with targeted relief.

Role of Tax Havens and Competition

Tax havens, defined as jurisdictions offering low or zero taxes on foreign income, secrecy, and favorable regulatory environments, play a pivotal role in fostering international tax competition by enabling multinational firms and high-net-worth individuals to minimize liabilities through legal profit shifting and residency choices. This competition arises from capital mobility, where jurisdictions vie for by undercutting rates, compelling higher-tax countries to or risk capital outflows; empirical models indicate that proximity to havens intensifies this dynamic, as firms exploit differential rates for financing and operations. For instance, havens like the and host trillions in assets, channeling funds that would otherwise face higher burdens elsewhere, thereby exerting downward pressure on global effective rates. The proliferation of tax havens has contributed to a secular decline in statutory rates worldwide, dropping from an average of 39% in 1980 to 22% in 2022, as governments compete to retain or attract mobile capital amid . Studies attribute this trend to competitive responses rather than mere , with evidence showing that reduced rates correlate with broadened tax bases and sustained or increased revenues in many cases, countering claims of a pure "." Tax competition enhances by directing investment toward productive uses over tax-favored locations, and research finds it bolsters overall and without proportionally eroding non-haven revenues; for example, haven usage has been linked to stimulated activity in high-tax neighbors through lower financing costs. Critics, often from institutions favoring coordinated taxation, argue that havens facilitate $500-600 billion in annual lost via profit shifting, distorting competition and undercutting public goods funding, though such estimates rely on assumptions about counterfactual taxation and overlook behavioral responses like increased . Pro-competitive perspectives, supported by endogenous growth models, posit that havens discipline fiscal profligacy, promoting and ; a 10 percentage point hike reduces and firm entry by significant margins, per firm-level . This dynamic has prompted countermeasures, such as the OECD's 2021 global minimum tax of 15%, adopted by over 130 jurisdictions to curb undercutting, yet empirical forecasts suggest it may only modestly raise rates if competition persists. In practice, tax havens amplify 's benefits for capital importers while challenging high-tax welfare states; efforts to blacklist non-cooperative havens have yielded limited results, as firms adapt via hybrid structures, underscoring the resilience of competitive pressures against supranational . Overall, while profit shifting imposes fiscal costs estimated in academic models, the net effect favors global , with preventing monopolistic taxation and aligning rates closer to marginal costs of public funds.

Global Initiatives and Their Impacts

The /G20 (BEPS) project, launched in 2013, represents a primary global initiative to address avoidance through coordinated measures across over 140 jurisdictions. Its 15 actions, implemented variably by countries since 2015, targeted practices like profit shifting that erode tax bases, estimated to cause annual global revenue losses of $100-240 billion, or 4-10% of receipts. BEPS Phase 2, encompassing Pillars One and Two agreed in 2021, further mandates reallocation of taxing rights for large multinationals and a 15% global minimum effective tax rate on covered entities with revenues exceeding €750 million, aiming to curb distortions from low effective rates in tax havens. By October 2025, Pillar Two's GloBE rules have been enacted or legislated in over 50 jurisdictions, including the European Union member states via a 2022 directive effective from 2024, the United Kingdom, Japan, and South Korea, with transitional rules applying from December 2023 in some cases. This has imposed top-up taxes on low-taxed income, effectively pressuring jurisdictions below the 15% threshold to either raise statutory rates or accept revenue forfeiture to parent countries. Empirical analyses indicate reduced profit shifting post-BEPS 1.0, with multinational investments less distorted by tax differentials, though full Pillar Two effects remain nascent and vary by implementation rigor. These initiatives have diminished tax competition by establishing a on effective rates, potentially enabling governments to sustain or elevate statutory corporate taxes without as much fear of , as evidenced by stabilized or rising average global corporate rates from 23% in to around 24% by 2023 amid BEPS adoption. However, critics argue this coordination overrides sovereign incentives for lower rates, which empirical studies link to higher investment and growth; for instance, jurisdictions engaging in tax competition have seen bolstered and economic activity compared to harmonized high-tax regimes. Developing countries, often more reliant on corporate taxes, have gained modestly from curbed erosion but face challenges in administrative capacity, with uneven benefits exacerbating revenue gaps. Overall, while BEPS has narrowed base erosion, its long-term impact on global tax rates hinges on compliance and resistance from non-participants, potentially fragmenting rather than unifying the system.

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