TOP 10 – Countries with the lowest corporate tax rates 2021

Lowest corporate tax rate levels in the world





Countries with the lowest taxes on corporate profits. Which countries have the lowest taxes on corporate profits? Which country has the lowest corporate tax rate? Which country has the lowest tax on profits in sole proprietorship? Which countries have the best business tax environment in the EU? Which EU member has the lowest tax on company revenue?

TOP 10 – World champions in low corporate tax 2021

(This applies to limited companies and similar)

# Country Corporate tax Comment
1 Bermuda 0 (no tax on profits, income, dividends or capital gains).
1 Cayman Islands 0 (no tax on profits, salaries or capital gains)
1 Guernsey 0 (20% for cannabis growers; banks 10%)
1 Isle of Man 0 (banks 10%, real estate 20%)
1 Jersey 0 (Finance companies 10%, large retail companies 20%, real estate companies 20%)
1 UAE 0 (oil and gas 55%; foreign banks 20%)
2 Barbados 5.5 (BBD > 1 MILLION EURO = 3%; BBD > 20 MILLION EURO = 2%; BBD > 30 MILLION EURO = 1%)
3 Turkmenistan 8 (foreign companies 20%)
4 Hong Kong SAR 8.25 (first 2 million HKD 8.25%, remaining profits taxed at 16.5%)
5 Hungary 9
5 Montenegro 9
6 Bosnia and Herzegovina 10
6 Bulgaria 10
6 Gibraltar 10
6 Kosovo 10
6 Kyrgyzstan 10
6 North Macedonia 10
6 Paraguay 10
6 Qatar 10 (35% may apply to companies in the oil and gas sector)
6 East Timor 10
7 Switzerland 11.9 (effective tax rate between 11.9% and 21.6% depending on location)
8 Macao SAR 12
8 Moldova 12
9 Cyprus 12.5
9 Ireland 12.5 (25% non-commercial businesses)
9 Liechtenstein 12.5
10 Albania 15
10 Canada 15 (Provincial and territorial tax rates vary between 8% and 16%)
10 Georgia 15
10 Iraq 15 (35% may apply to companies in the oil and gas sector)
10 Kuwait 15
10 Lithuania 15
10 Maldives 15
10 Mauritius 15 (3% for goods-exporting companies)
10 Oman 15
10 Palestine 15
10 Serbia 15
10 Tunisia 15
10 Uzbekistan 15

Table last updated 24 April 2021. Source: PWC.

TOP 10 – Countries with lowest tax rates for Sole Proprietorships 2021

If you plan to move out of your country entirely and have a small business, work as a consultant or make money on the Internet, you may not think it is worth it to start the equivalent of a limited company in another country. It may then be appropriate to look at the equivalent of a Sole Proprietorship which in English is called Sole Proprietorship. It is usually more challenging to obtain a list of tax rates for sole proprietorships in other countries compared to corporation tax for limited companies. Therefore, I have compiled a unique list of the taxes you will pay on the profits of the equivalent of sole proprietorship in different countries around the world. Often the tax is the same as for a limited company, or it follows the same tax structure as for salaries, but not always, and it can differ a lot both between countries and between different business forms. Each country also has a varying degree of complexity with different deductions and reductions on income, which can differ between ordinary wage income and profits from business activities.

# Country Income tax Comment
1 UAE 0
1 Saudi Arabia 0 (non-resident 20%)
1 Kuwait 0 (15% foreign business owners)
1 Cayman Islands 0
1 Brunei 0
1 Bermuda 0 (In some cases up to 11.5%)
1 Bahrain 0
1 Bahamas 0
2 Hong Kong 2 (2%-17%)
3 Gibraltar 5 (5-39%)
4 Guatemala 7
5 Montenegro 9
6 Qatar 10
6 Mongolia 10 (Non-resident 20%)
6 North Macedonia 10
6 Kosovo 10
6 Kazakhstan 10
6 Bulgaria 10
6 Bosnia/Herzegovina 10
6 Romania 10
6 East Timor 10
6 Turkmenistan 10
7 Macao 12
7 Moldova 12
7 Uzbekistan 12 (non-resident 20%)
8 Libya 13
8 Tajikistan 13
8 Russia 13 (>5M RUB 15%; non-resident 30%)
8 Bolivia 13
8 Belarus 13
8 Tajikistan 13 (non-resident 25%)
9 Oman 15
9 Yemen 15
9 Sudan 15 (Manufacturing 10%; Agriculture 0%; Tobacco 2%)
9 Seychelles 15 (0% < 150000 SR; 15% < 850000; 33%)
9 Serbia 15
9 Mauritius 15
9 Lithuania 15
9 Iraq 15
9 Costa Rica 15 (5-10% < $15000; 20% < $175000; 30%)
9 Czech Republic 15 (23% > 1.7M CZK)
9 Hungary 15
9 Maldives 15
9 Palestine 15
10 Ukraine 18 (plus 1.5% military tax since 2014)

The table was last updated on April 22, 2021. Main source: PWC

*Why isn’t Monaco included? They have NO income tax. The simple answer is that in order to register in Monaco you have to open a bank account and deposit at least 300000 Euros, hence this is not a practical option for a small business owner or a freelancer.

*UK – if you have sole proprietorship registered in the UK you will have to pay tax on the profits/income, therefore the country is not listed as you will have to pay tax on profits over £12,500 per year. The tax is 20% on profits up to £37.5K, 40% over £37.5K and 45% over £150K. The UK is therefore far from being a tax haven.

*Temporary corporate tax reductions come in many shapes and forms during the Corona period. Several countries have already announced increases after the pandemic (including the UK, which is increasing to 25% on 1 April 2023).

TOP 10 – Lowest corporate tax rates in the EU 2021

# Country Corporate tax Comment
1 Hungary 9
2 Bulgaria 10
3 Cyprus 12.5
3 Ireland 12.5 (25% non-trading corp.)
4 Lithuania 15
5 Romania 16
6 Croatia 18 (10% for profits < 7.5M HRK)
7 Poland 19 (9% up to 2M Euro in turnover)
7 Slovenia 19
7 Czech Republic 19
8 Estonia 20 (undistributed profits are tax-free)
8 Finland 20
8 Latvia 20
9 Sweden 20.6
10 Portugal 21 (plus local tax depending on location)
10 Slovakia 21 (15% for SMEs up to 100000 Euro in profit)
11 Denmark 22
12 Greece 24
12 Italy 24
13 Luxembourg 24.94
14 Belgium 25 (SMEs 20% up to 100000 Euro in profit)
14 Netherlands 25 (SMEs 15% for profits < 245000 Euro)
14 Austria 25
14 Spain 25 (15% for startups)
15 France 28 (plus a social security contribution of 3.3% calculated on corporate income tax. Revenue > 250M Euro gives 31% for profits > 0,5M Euro)
16 Germany 30 Corporate tax/solidarity surcharge: 15.825%; trade tax: 12.6%-20.3%, depending on location.
17 Malta 35 (Often only 5% for limited companies)

Table last updated 22 April 2021. Source: PWC.

SME = Small company.

Malta officially has up to 35% tax on profits for limited companies but due to shareholder deductions the real tax in practice is often only 5%. Malta is therefore 2nd on the list in reality.

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