These Are The Countries With The Highest Corporate Tax Rates

In 1980, the global average corporate tax rate stood at 40.2% - a level notably higher than today...

Over the last several decades, corporate tax rates have declined across every region, with the average now falling at 23.5% as of 2023. As tax rates have sunk lower, U.S. Treasury Secretary Janet Yellen and others have called for a global minimum corporate tax to prevent multinationals from sheltering profits in tax havens.

But on the other hand, some argue that lower corporate rates allow corporations to report more income and boost real business activities.

The graphic below, from Pranav Gavali, via Visual Capitalist, shows the countries with the highest corporate tax rates since 1980.

What are the Top 10 Countries by Corporate Tax Rates?

Below, we show how countries with the highest corporate taxes have changed over the last four decades, based on data from the Tax Foundation:

As the above table shows, countries clustered in Africa and South America have the top rates globally.

Argentina, with a corporate tax rate of 35%, hiked up rates from 25% in 2022 as the country was mired in a deepening economic crisis. The country has also been a key supporter of a global minimum tax, suggesting it should be raised as high as 25%.

Malta, the only European nation on the list, also has one of the highest rates. Yet its tax system is complex: local businesses pay a 35% rate on profits, but international firms can pay as low as 5% in Malta with an additional 10% tax paid in their originating country.

By contrast, we can see that in 1980, countries including India, China and the United Kingdom had corporate tax rates above 50%. Since then, China underwent a series of economic reforms that included key tax reductions that helped drive the growth of its private sector.

In the United Kingdom, tax rates were 52% four decades ago and now fall at 25%. The U.S. tells a similar story, with corporate rates standing at 46% in 1980—more than double the rates seen today. Major corporate tax cuts were seen during Reagan’s presidency during the 1980s, when rates were cut to 35%, and later in 2017 when they were further reduced to 21% under the Tax Cuts and Jobs Act.