International Comparisons of Corporate Income Tax Rates
CONGRESS OF THE UNITED STATES
CONGRESSIONAL BUDGET OFFICE
CBO
? Shutterstock/Cool Vector Maker
International
Comparisons of
Corporate
Income Tax Rates
MARCH 2017
Notes
Unless otherwise indicated, all years referred to in this document are calendar years.
Numbers in the text, tables, exhibits, and figures may not sum to totals because of rounding.
The data underlying the exhibits and figures in this report are posted along with the report on CBO¡¯s website
(publication/52419).
In this report, the top statutory tax rate encompasses national and local tax rates: The top statutory rate equals the sum
of the corporate income tax rate applied to income in the top bracket at the national level and, generally, the average of
the highest rates set by subnational governments in a given country (states or provinces, for example).
CBO
publication/52419
Contents
Summary and Introduction
Table 1. Corporate Tax Rates in G20 Countries, From Highest to Lowest, 2012
Statutory Corporate Tax Rates in the United States and Other Countries
Exhibits
6
7¨C9
Average Corporate Tax Rates in G20 Countries
Exhibits
10
12¨C14
Effective Corporate Tax Rates and Key Factors Affecting Those Rates
Exhibits
15
17¨C24
Appendix A: Methodology and Data Sources
Table A-1. Tax Treatment of Depreciation for Selected Types of Assets
25
30
Appendix B: The Sensitivity of Estimates of Effective Marginal Corporate Tax Rates to Certain Analytical Choices
Figure B-1. Effective Corporate Tax Rates With Alternative Allocations of Asset Shares in G20 Countries, 2012
33
34
Figure B-2. Effective Corporate Tax Rates With Alternative Rates of Inflation in G20 Countries, 2012
35
Figure B-3. Effective Corporate Tax Rates With Uniform and Country-Specific Rates of Inflation in G20 Countries, 2012
37
Figure B-4. Effective Corporate Tax Rates in G20 Countries With Alternative Financing Mixes, 2012
38
Figure B-5. Effective Corporate Tax Rates in Certain G20 Countries With Alternative Tax Treatments for
Investments in Intangible Assets, 2012
39
About This Document
CBO
1
2
41
List of Exhibits
Exhibit
1.
Statutory Rates for U.S. Federal Corporate Income Taxes, 2012
7
2.
Top Statutory Corporate Income Tax Rates in Selected Countries, Arrayed by GDP, 2012
8
3.
Top Statutory Corporate Income Tax Rates in G20 Countries, 2003 and 2012
9
4.
Number of U.S.-Owned Foreign Corporations in Other G20 Countries, 2004 and 2012
12
5.
Average and Top Statutory Corporate Income Tax Rates in G20 Countries, 2012
13
6.
Average Corporate Tax Rates in G20 Countries, 2004 and 2012
14
7.
Effective Corporate Tax Rates and Top Statutory Corporate Income Tax Rates in G20 Countries,
Inclusive of All Types of Assets and Financing Sources, 2012
17
Effective Corporate Tax Rates in G20 Countries, Inclusive of All Types of Assets and
Financing Sources, 2003 and 2012
18
Effective Corporate Tax Rates for Buildings and Equipment in G20 Countries, Inclusive of
All Types of Financing Sources, 2012
19
Effective Corporate Tax Rates for Equity-Financed Buildings and Equipment in
G20 Countries, 2012
20
Ratio of the Present Value of Cost Recovery Allowances to the Present Value of
Economic Depreciation for Buildings in G20 Countries, 2012
21
Ratio of the Present Value of Cost Recovery Allowances to the Present Value of
Economic Depreciation for Equipment in G20 Countries, 2012
22
13.
Effective Corporate Tax Rates for Debt- or Equity-Financed Buildings in G20 Countries, 2012
23
14.
Effective Corporate Tax Rates for Debt- or Equity-Financed Equipment in G20 Countries, 2012
24
8.
9.
10.
11.
12.
CBO
Page
International Comparisons of
Corporate Income Tax Rates
Summary and Introduction
In the United States, the top federal statutory
corporate income tax rate (the rate set by law that
applies to the highest corporate income tax
bracket) has been 35 percent since 1993. Most
corporate income is taxed at that rate. With state
taxes added in, the top statutory rate is even higher;
on average, that combined rate was 39.1 percent in
2012, among the highest in the world (see
Summary Table 1).1
The statutory corporate tax rate is one of many features of the tax system that influence corporate
behavior. Companies are likely also to consider
other provisions of the tax system¡ªincluding tax
preferences, surtaxes, and noncorporate taxes¡ª
that affect the amount of taxes they owe. Among
the alternative measures of tax rates that account
for some of those provisions are the average and
effective marginal corporate tax rates.
1. At the time that the tax rates considered in this analysis
were computed, 2012 was the most recent year for which
complete data were available.
CBO
The average corporate tax rate is a measure of the
total amount of corporate taxes that a company
pays as a share of its income. The Congressional
Budget Office estimates that the U.S. average
corporate tax rate for foreign-owned companies
incorporated in the United States in 2012 was
29 percent¡ªabout 10 percentage points below the
top U.S. statutory corporate tax rate.2
The effective marginal corporate tax rate (in this
document, the effective corporate tax rate), is a
measure of a corporation¡¯s tax burden on returns
from a marginal investment (one that is expected
to earn just enough, after taxes, to attract investors). CBO estimates that the effective corporate
tax rate was 19 percent in the United States in
2. The average corporate tax rate faced by foreign-owned
companies incorporated in the United States is used as a
proxy for the measure that a U.S. corporation with
operations in several countries would consider when
comparing a new investment in a foreign country with a
new investment in the United States. See Appendix A for
further discussion of CBO¡¯s analytical methods.
2012. That rate, the fourth highest among the
Group of 20 (G20) countries, was about 20 percentage points below the top U.S. statutory corporate tax rate.3
This chart book is an update and expansion of
CBO¡¯s 2005 report that examined statutory and
effective corporate tax rates for the United States
and member countries of the Organisation for
Economic Co-operation and Development and the
Group of 7 between 1982 and 2003.4 This report
focuses mainly on the 2012 tax rates in countries
3. The G20 consists of Argentina, Australia, Brazil, Canada,
China, France, Germany, India, Indonesia, Italy, Japan,
Mexico, Russia, Saudi Arabia, South Africa, South Korea,
Turkey, the United Kingdom, the United States, and the
European Union (a group of 28 countries, including
France, Germany, Italy, and the United Kingdom).
4. Congressional Budget Office, Corporate Income Tax Rates:
International Comparisons (November 2005),
publication/17501.
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- postal regulatory commission
- tax table virginia
- outline of chapter
- corporate tax rates kpmg
- 2017 form 100 franchise tax board homepage
- state corporate income tax rates and brackets for 2017
- corporate income tax rates deloitte
- ato ldgprog 0001 2017 progress business implementation
- 2017 pa corporate net income tax ct 1 instructions rev
- international comparisons of corporate income tax rates
Related searches
- canadian income tax rates 2019
- new york income tax rates 2019
- 2020 fed income tax rates chart
- 2019 federal income tax rates chart
- state income tax rates 2019
- federal income tax rates married filing joint
- income tax rates 2019
- colorado income tax rates 2020
- canadian income tax rates 2020
- bc income tax rates 2019
- alabama income tax rates 2020
- new york city income tax rates 2019