Total tax rate (% of commercial profits) - Country Ranking

Definition: Total tax rate measures the amount of taxes and mandatory contributions payable by businesses after accounting for allowable deductions and exemptions as a share of commercial profits. Taxes withheld (such as personal income tax) or collected and remitted to tax authorities (such as value added taxes, sales taxes or goods and service taxes) are excluded.

Source: World Bank, Doing Business project (http://www.doingbusiness.org/).

See also: Thematic map, Time series comparison

Find indicator:
Rank Country Value Year
1 Comoros 216.50 2015
2 Argentina 137.40 2015
3 Bolivia 83.70 2015
3 Eritrea 83.70 2015
5 Tajikistan 81.80 2015
6 Palau 75.40 2015
7 Central African Republic 73.30 2015
8 Algeria 72.70 2015
9 Mauritania 71.30 2015
10 Colombia 69.70 2015
11 Brazil 69.20 2015
12 Guinea 68.30 2015
13 China 67.80 2015
14 Puerto Rico 65.80 2015
15 Venezuela 65.00 2015
16 Italy 64.80 2015
17 Nicaragua 63.90 2015
18 Chad 63.50 2015
19 The Gambia 63.30 2015
19 Benin 63.30 2015
21 France 62.70 2015
22 India 60.60 2015
23 Tunisia 59.90 2015
24 Belgium 58.40 2015
25 Costa Rica 58.00 2015
26 Congo 56.00 2015
27 Sri Lanka 55.20 2015
28 Dem. Rep. Congo 54.60 2015
29 Ukraine 52.20 2015
30 Côte d'Ivoire 51.90 2015
31 Belarus 51.80 2015
32 Austria 51.70 2015
32 Mexico 51.70 2015
34 Japan 51.30 2015
35 Slovak Republic 51.20 2015
36 Czech Republic 50.40 2015
37 Spain 50.00 2015
38 St. Kitts and Nevis 49.70 2015
39 Greece 49.60 2015
40 Estonia 49.40 2015
41 Sweden 49.10 2015
41 Morocco 49.10 2015
43 Germany 48.80 2015
43 Cameroon 48.80 2015
45 Togo 48.50 2015
46 Hungary 48.40 2015
46 Angola 48.40 2015
48 Mali 48.30 2015
49 Niger 48.20 2015
50 Liberia 47.80 2015
51 Australia 47.60 2015
52 Senegal 47.30 2015
53 Equatorial Guinea 47.10 2015
54 Russia 47.00 2015
55 Gabon 45.70 2015
56 Guinea-Bissau 45.50 2015
57 Sudan 45.40 2015
58 Grenada 45.30 2015
59 Egypt 45.00 2015
60 Honduras 44.30 2015
61 Iran 44.10 2015
62 Tanzania 43.90 2015
62 United States 43.90 2015
64 Philippines 42.90 2015
65 Syrian Arab Republic 42.70 2015
66 Lithuania 42.60 2015
67 Dominican Republic 42.40 2015
68 Romania 42.00 2015
69 Antigua and Barbuda 41.90 2015
70 Uruguay 41.80 2015
71 Burkina Faso 41.30 2015
71 Malta 41.30 2015
73 Uzbekistan 41.10 2015
74 Portugal 41.00 2015
74 Netherlands 41.00 2015
76 Turkey 40.90 2015
77 San Marino 40.50 2015
78 Poland 40.30 2015
78 Burundi 40.30 2015
78 Haiti 40.30 2015
81 Moldova 40.20 2015
82 Malaysia 40.00 2015
83 Azerbaijan 39.80 2015
84 Serbia 39.70 2015
85 Norway 39.50 2015
86 Vietnam 39.40 2015
87 Papua New Guinea 39.30 2015
88 El Salvador 38.70 2015
89 St. Vincent and the Grenadines 38.60 2015
90 São Tomé and Principe 38.20 2015
91 Madagascar 38.10 2015
92 Finland 37.90 2015
93 Djibouti 37.60 2015
94 Guatemala 37.50 2015
95 Panama 37.20 2015
96 Kenya 37.10 2015
97 Dominica 37.00 2015
98 Cabo Verde 36.50 2015
98 Albania 36.50 2015
98 Uganda 36.50 2015
101 Afghanistan 36.30 2015
102 Mozambique 36.10 2015
103 Peru 35.90 2015
103 Latvia 35.90 2015
105 Bhutan 35.30 2015
106 Jamaica 35.20 2015
107 Paraguay 35.00 2015
108 St. Lucia 34.70 2015
108 Swaziland 34.70 2015
108 Barbados 34.70 2015
111 Malawi 34.50 2015
112 New Zealand 34.30 2015
113 The Bahamas 33.70 2015
114 Nigeria 33.30 2015
115 Korea 33.20 2015
116 Yemen 33.10 2015
117 Ecuador 33.00 2015
117 Rwanda 33.00 2015
119 Zimbabwe 32.80 2015
119 Libya 32.80 2015
121 Kiribati 32.70 2015
121 Ghana 32.70 2015
123 Pakistan 32.60 2015
124 Guyana 32.30 2015
125 Trinidad and Tobago 32.20 2015
126 Ethiopia 32.10 2015
127 Solomon Islands 32.00 2015
127 United Kingdom 32.00 2015
129 Bangladesh 31.60 2015
130 Myanmar 31.40 2015
131 Belize 31.10 2015
131 Fiji 31.10 2015
133 Sierra Leone 31.00 2015
133 Slovenia 31.00 2015
135 Israel 30.60 2015
136 Lebanon 30.30 2015
137 Tonga 30.10 2015
137 Seychelles 30.10 2015
139 Indonesia 29.70 2015
140 Iceland 29.60 2015
141 Jordan 29.50 2015
141 Nepal 29.50 2015
143 Kazakhstan 29.20 2015
144 Kyrgyz Republic 29.00 2015
145 Chile 28.90 2015
146 South Africa 28.80 2015
146 Switzerland 28.80 2015
148 Suriname 27.90 2015
149 Iraq 27.80 2015
150 Thailand 27.50 2015
151 Bulgaria 27.00 2015
152 Ireland 25.90 2015
153 Lao PDR 25.30 2015
154 Botswana 25.10 2015
155 Denmark 24.50 2015
156 Mongolia 24.40 2015
156 Cyprus 24.40 2015
158 Bosnia and Herzegovina 23.30 2015
159 Oman 22.90 2015
160 Hong Kong SAR, China 22.80 2015
161 Mauritius 22.40 2015
162 Montenegro 21.60 2015
163 Namibia 21.30 2015
164 Canada 21.10 2015
165 Cambodia 21.00 2015
166 Luxembourg 20.10 2015
167 Croatia 20.00 2015
168 Armenia 19.90 2015
169 Zambia 18.60 2015
170 Singapore 18.40 2015
171 Samoa 18.10 2015
172 Georgia 16.40 2015
173 United Arab Emirates 15.90 2015
174 Saudi Arabia 15.00 2015
175 Lesotho 13.60 2015
176 Bahrain 13.50 2015
177 Kuwait 13.00 2015
178 Macedonia 12.90 2015
179 Qatar 11.30 2015
180 Timor-Leste 11.20 2015
181 Brunei 8.70 2015
182 Vanuatu 8.50 2015

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Development Relevance: The total tax rate payable by businesses provides a comprehensive measure of the cost of all the taxes a business bears. It differs from the statutory tax rate, which is the factor applied to the tax base. In computing business tax rates, actual tax payable is divided by commercial profit. Taxes are the main source of revenue for most governments. The sources of tax revenue and their relative contributions are determined by government policy choices about where and how to impose taxes and by changes in the structure of the economy. Tax policy may reflect concerns about distributional effects, economic efficiency (including corrections for externalities), and the practical problems of administering a tax system. There is no ideal level of taxation. But taxes influence incentives and thus the behavior of economic actors and the economy's competitiveness.

Limitations and Exceptions: To make the data comparable across countries, several assumptions are made about businesses. The main assumptions are that they are limited liability companies, they operate in the country's most populous city, they are domestically owned, they perform general industrial or commercial activities, and they have certain levels of start-up capital, employees, and turnover. The Doing Business methodology on business taxes is consistent with the Total Tax Contribution framework developed by PricewaterhouseCoopers (now PwC), which measures the taxes that are borne by companies and that affect their income statements. However, PwC bases its calculation on data from the largest companies in the economy, while Doing Business focuses on a standardized medium-size company.

Statistical Concept and Methodology: The data covering taxes payable by businesses, measure all taxes and contributions that are government mandated (at any level - federal, state, or local), apply to standardized businesses, and have an impact in their income statements. The taxes covered go beyond the definition of a tax for government national accounts (compulsory, unrequited payments to general government) and also measure any imposts that affect business accounts. The main differences are in labor contributions and value added taxes. The data account for government-mandated contributions paid by the employer to a requited private pension fund or workers insurance fund but exclude value added taxes because they do not affect the accounting profits of the business - that is, they are not reflected in the income statement.

Aggregation method: Unweighted average

Periodicity: Annual

General Comments: Data are presented for the survey year instead of publication year.