World corporate tax rates

In 1980, the global average corporate tax rate stood at a staggering 40.2%. But over the last few decades, corporate tax rates have declined across every region, with the average now falling at 23.5% as of 2023.

Commentators, including US treasury secretary Janet Yellen, have called for a global minimum corporate tax to prevent multinationals from sheltering profits in tax havens. Others argue that lower corporate rates allow corporations to report more income and boost real business activities.

The graphic below, based on data from the Tax Foundation and Visual Capitalist, shows how countries with the highest corporate taxes have changed over the last 40 years.

The top rates globally are found in Africa and South America, with Malta as a European outlier. However, Malta’s tax system is complex: local businesses pay a 35% rate on profits, but international companies can pay as low as 5%, with an additional 10% tax paid in their originating country.

Lowest rates

Since 1980, Turkmenistan, Montenegro, and Bosnia and Herzegovina have consistently featured among the top countries with the lowest corporate tax rates (excluding tax havens and other countries with 0% tax). The most notable shift is Hungary’s decrease from 18% in 1995 to 9% in 2023 (see pre-2023 data).

The graphic below shows the countries with the lowest corporate taxes now and in 1980.