27 December 2022 | Tax Foundation / United States
The Tax Foundation released the 2022 Corporate Tax Rates around the World.
Here are the four main takeaways from this data-driven research and analysis:
Data on the decades-long decline: Over the past four decades, corporate tax rates around the world, including in the largest economies, have declined from an average of 40 percent to 23 percent as countries have recognized the impact that high corporate rates have on business investment decisions.
A race towards the middle: In recent years, this decline in corporate tax rates around the world has leveled off. Today, most countries have corporate tax rates below 30 percent. The U.S. followed this trend with the 2017 reforms, which brought the U.S. corporate tax rate from the fourth highest in the world closer to the middle of the pack.
Reliance on corporate tax revenue: Despite a general decline in corporate tax rates around the world, OECD and non-OECD countries have also become more reliant on revenue from corporate income taxes.
Turning to more efficient tax types: Of 225 jurisdictions around the world, only six have increased their top corporate income tax rate in 2022, a trend expected to hold steady as countries have more efficient tax types to turn towards.
You can access the publication here.