Rating of countries by the level of tax burden on business 2019

The list of the most profitable countries in terms of business development was made by Tax Foundations, a non-profit tax organization. Its experts have been calculating who paid where when and how much taxes for over 80 years.

To compose rating of countries by the level of tax burden on business business tax rates were studied in more than 200 countries around the world. And it turned out that over the past 30 years, the corporate tax rate has been steadily declining.

• In 1980, the average income tax rate was 46.63%.
• Now the average for 208 countries is about 23.03%.
• Even the United States, which traditionally adheres to the view that businesses should pay (for a long time the tax rate there was one of the highest in the world), weakened its tax grip a little. They are now closer to the middle of the list.

Countries with the lowest business tax burden

10. Cyprus

Corporate tax rate: 12.5%

Europe as a whole is considered one of the most favorable regions for business in terms of tax burden. The average income tax there is 18.38%. As for Cyprus, it has long been considered a kind of Mecca for the rich, where serious businessmen launder money.

True, the Cypriots themselves ardently protest against this characteristic and claim that they attract businessmen from all over the world with an exceptionally favorable tax regime and a facilitated process of starting their own business. And the country's taxation fully complies with the requirements of the European Union and the OECD.

Apart from Cyprus, Ireland and Liechtenstein have the same business tax rate. However, Ireland has its own specifics: 12.5% ​​is taken there only from income received from trade. But if an entrepreneur produces something or supplies services, then the rate there is already more serious - 25%.

9. Macau

Corporate tax rate: 12%

The next in the ranking of places with the lowest tax burden on business is Macau - the legacy of the colonial era, which China was able to return only at the very end of the last century.

This is the second so-called Special Administrative Region of China after Hong Kong. That is, a territory that remains independent in many respects. For example, Macau has its own currency. And in 2001, a law was passed to legalize gambling. Thanks to him, at the moment, "Chinese Las Vegas" is one of the leading gaming centers not only in Asia, but throughout the world.

8. Moldova

Corporate tax rate: 12%

And here is the first post-Soviet country in the list of states with the lowest tax burden on business in 2019.The corporate tax rate in Moldova is only 12%, but over the past 14 years it has fluctuated more than once.

The highest (20%) was recorded in 2004 and the lowest (0%) in 2008. Perhaps, thanks to such a low rate, the country's foreign trade is getting stronger. Over the past couple of years, its volume has increased by 18.4%.

7. Nauru

Corporate tax rate: 10%

It is a tiny state located on a small coral island in the Pacific Ocean, with a population of only 10 thousand people. The country does not even have its own capital, and it is not needed with an area of ​​21 km2.

After the barbaric mining of phosphorites, the island is experiencing a severe environmental disaster, and in an attempt to make money in the early 90s of the last century, it was decided to turn Nauru into an offshore zone. It became so popular that an anti-money laundering financial institution was forced to ban the creation of offshore banks on the island. However, to this day, the corporate tax rate in Nauru remains one of the lowest in the world.

6. Paraguay

Corporate tax rate: 10%

An important part of Paraguay's economy is the so-called Makila regime - this is when large foreign companies set up assembly plants in Latin America, taking advantage of the cheap local labor and the prospects of contract hourly wages. Of course, no sick leave or leave for employees is provided.

This is mainly done by businessmen from the United States. “Why exactly them?” - You may ask, looking at the map and noting that Paraguay is further from the United States than Mexico, where such enterprises are very common. It's very simple: the tax rate in Paraguay is the lowest in all of Latin America.

5. Kyrgyzstan

Corporate tax rate: 10%

What do the former Soviet republics of the USSR have in common? the safest state in the worldan oil and gas exporter and a small island nation in the Indian Ocean? Only one thing - a low corporate tax rate. The first country is Kyrgyzstan, and the second two are Qatar and East Timor.

4. Andorra

Corporate tax rate: 10%

The tiny state, sandwiched between France and Spain, compares favorably with its neighbors in tax policy. For example, Andorrans introduced income tax only in 2015 and then under pressure from the European Union. However, this small country is still considered an ideal starting point for expats looking to make money. There is no property tax, gift tax or even inheritance tax, and income tax is charged only when property is sold. Moreover, it is possible to become a citizen of a country only either by creating an enterprise in the country, or by investing in an existing one.

In addition to Andorra, Bulgaria, one of the countries most loved by European entrepreneurs, can boast of a 10% business tax. In addition to the low tax rate (by the way, for individuals it is the same 10%), businessmen are attracted by its convenient territorial location, developed infrastructure and low wages of workers, traditional for the countries of the former Eastern Bloc.

3. Hungary

Corporate tax rate: 9%

Despite the fact that Hungary is still a country dependent on the European Union and its subsidies, the forecasts for its development are the most favorable. Orban's government (the country's prime minister) has managed to achieve GDP growth and an overall improvement in the well-being of the population.

Perhaps one of the lowest corporate tax rates in Europe played a significant role in this. The Hungarian government not only attracts foreign companies, but also supports the growth of its own small businesses. And the labor market is full of qualified specialists at a lower price than usual in Europe.

Montenegro is also taking an example from Hungary - a small Balkan state trying to survive by attracting foreign investors.It is favorably distinguished by both the low rate of the business tax and the transparency of the tax system. Montenegro is simply forced to behave decently, otherwise it will not be allowed into the EU, which the country is trying to achieve with all its might.

2. Turkmenistan

Corporate tax rate: 8%

Such a pleasant figure for businessmen applies only to residents - residents of Turkmenistan. It is their businesses that are taxed at 8%. For individual entrepreneurs-residents, the rate is even lower and is only 2%.

But foreigners will have to pay more. For them, the corporate tax rate is 20% in accordance with the "Law on Oil".

1. Uzbekistan

Corporate tax rate: 7.5%

This low corporate tax rate is a kind of "general hospital temperature." In Uzbekistan, the rate is different for different enterprises.

• Standard - 12%.
• For commercial banks - 20% (it was also reduced from 22%, as it was last year).
• But mobile operators will have to pay more - for them the rate has increased from 14 to 20%.
• From a tax point of view, doing small business in Uzbekistan is slightly more profitable. For him, the tax rate was reduced to 4%.

Which countries have the highest tax burden on business

The leader here is the United Arab Emirates with a terrifying figure for a businessman - 55%. Let us clarify that only foreign companies engaged in oil production and refining, as well as foreign bankers, are subject to such a tax rate. But the attitude towards their entrepreneurs in the UAE is much softer.

Then there are the developing countries with fragile economies located in Africa and South America. Their tax rate is from 50 to 33%. Of the large, dynamically developing countries, India and Brazil have the highest tax rates (35 and 34%, respectively).

There are even two European countries in the list of "tight-fisted" countries - France (34.43% rate) and Malta (35%). It is not surprising that the French prefer to organize business somewhere outside their own country.

Countries where business is not taxed

• Anguilla
• Bahamas
• Bahrain
• Bermuda
• Cayman islands
• Guernsey
• Isle Of Man
• Jersey
• Palau
• Turks and Caicos Islands
• Vanuatu
• British Virgin Islands

Corporate taxes in Russia 2019

Russian corporate taxes and tax liabilities vary depending on the structure of the business. This is how the table of the tax burden in Russia in 2019 looks like, depending on various types of economic activity, according to the Federal Tax Service.