Labor tax and contributions (% of commercial profits) - Country Ranking

Definition: Labor tax and contributions is the amount of taxes and mandatory contributions on labor paid by the business.

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

See also: Thematic map, Time series comparison

Find indicator:
Rank Country Value Year
1 France 50.00 2019
2 China 46.20 2019
3 Belgium 44.50 2019
4 Mali 43.10 2019
5 Italy 42.90 2019
6 Slovak Republic 39.70 2019
7 Brazil 39.40 2019
8 Belarus 39.00 2019
9 Czech Republic 38.40 2019
10 Estonia 38.00 2019
11 Russia 36.70 2019
12 Spain 35.80 2019
13 Sweden 35.40 2019
14 Lithuania 35.20 2019
15 Ukraine 33.80 2019
16 Austria 33.70 2019
17 Costa Rica 32.70 2019
18 Congo 31.30 2019
19 Algeria 31.10 2019
20 San Marino 30.90 2019
21 Argentina 29.90 2019
21 Moldova 29.90 2019
23 Guinea 28.60 2019
24 Tajikistan 28.50 2019
25 Chad 28.40 2019
26 Greece 28.30 2019
27 Mexico 27.20 2019
27 Latvia 27.20 2019
29 Portugal 26.80 2019
30 Hungary 26.40 2019
30 Benin 26.40 2019
32 Nepal 26.20 2019
33 Iran 25.90 2019
34 Egypt 25.50 2019
34 Gabon 25.50 2019
36 Equatorial Guinea 25.40 2019
36 Azerbaijan 25.40 2019
38 Poland 25.30 2019
38 Tunisia 25.30 2019
40 Lebanon 24.90 2019
41 Guinea-Bissau 24.80 2019
42 Vietnam 24.30 2019
43 Nicaragua 23.70 2019
44 Colombia 23.60 2019
44 Senegal 23.60 2019
46 Morocco 23.30 2019
46 Côte d'Ivoire 23.30 2019
48 Togo 23.10 2019
49 Finland 23.00 2019
50 Niger 22.30 2019
51 Germany 21.50 2019
51 Bulgaria 21.50 2019
53 Burkina Faso 21.40 2019
54 Australia 21.00 2019
55 Iceland 20.60 2019
56 Netherlands 20.50 2019
57 Madagascar 20.30 2019
58 India 20.20 2019
58 Serbia 20.20 2019
60 Panama 20.00 2019
61 Central African Republic 19.80 2019
62 Turkey 19.70 2019
63 Kyrgyz Republic 19.50 2019
64 Croatia 19.40 2019
65 Syrian Arab Republic 19.30 2019
66 Sudan 19.20 2019
67 Albania 18.80 2019
67 Bolivia 18.80 2019
69 Cabo Verde 18.70 2019
70 Dominican Republic 18.60 2019
70 Paraguay 18.60 2019
70 Japan 18.60 2019
73 El Salvador 18.30 2019
73 Cameroon 18.30 2019
75 Slovenia 18.20 2019
75 Venezuela 18.20 2019
77 Singapore 17.80 2019
78 Switzerland 17.70 2019
78 Djibouti 17.70 2019
80 Tanzania 17.50 2019
81 Uzbekistan 17.40 2019
82 Sri Lanka 16.90 2019
83 Malaysia 16.70 2019
84 Jordan 16.10 2019
85 Norway 15.90 2019
86 Uruguay 15.60 2019
87 Luxembourg 15.40 2019
88 Pakistan 15.00 2019
89 Ghana 14.70 2019
90 Guatemala 14.30 2019
91 United Arab Emirates 14.10 2019
92 Ecuador 13.70 2019
92 Korea 13.70 2019
94 Bosnia and Herzegovina 13.60 2019
95 Saudi Arabia 13.50 2019
95 Mongolia 13.50 2019
95 Bahrain 13.50 2019
95 Iraq 13.50 2019
95 Nigeria 13.50 2019
100 Jamaica 13.40 2019
100 Puerto Rico 13.40 2019
100 Montenegro 13.40 2019
103 Kuwait 13.00 2019
103 Oman 13.00 2019
103 Cyprus 13.00 2019
106 Canada 12.70 2019
106 Barbados 12.70 2019
108 Dem. Rep. Congo 12.60 2019
108 The Gambia 12.60 2019
110 Haiti 12.40 2019
110 Ireland 12.40 2019
110 Malawi 12.40 2019
110 Ethiopia 12.40 2019
110 Fiji 12.40 2019
115 Antigua and Barbuda 12.10 2019
116 United Kingdom 12.00 2019
117 Indonesia 11.60 2019
118 Qatar 11.30 2019
118 Yemen 11.30 2019
118 Sierra Leone 11.30 2019
118 Uganda 11.30 2019
122 St. Kitts and Nevis 11.20 2019
123 Malta 11.10 2019
124 Peru 11.00 2019
125 Palau 10.70 2019
126 Zambia 10.40 2019
127 Mauritania 10.30 2019
127 Libya 10.30 2019
129 Burundi 10.20 2019
130 Kazakhstan 10.10 2019
131 United States 9.80 2019
132 Papua New Guinea 9.50 2019
133 Trinidad and Tobago 9.40 2019
134 Guyana 9.20 2019
135 Angola 9.00 2019
136 Philippines 8.90 2019
137 Honduras 8.80 2019
138 Solomon Islands 8.50 2019
138 Kiribati 8.50 2019
138 Samoa 8.50 2019
141 Mauritius 8.20 2019
142 Brunei 7.90 2019
142 Dominica 7.90 2019
144 Timor-Leste 6.80 2019
144 São Tomé and Principe 6.80 2019
144 Lao PDR 6.80 2019
147 Eswatini 6.40 2019
147 The Bahamas 6.40 2019
149 St. Vincent and the Grenadines 6.20 2019
150 Liberia 6.10 2019
151 Rwanda 6.00 2019
152 Israel 5.80 2019
153 Zimbabwe 5.60 2019
153 Grenada 5.60 2019
153 St. Lucia 5.60 2019
153 Tonga 5.60 2019
157 Thailand 5.40 2019
158 Hong Kong SAR, China 5.30 2019
159 Chile 5.10 2019
160 Belize 5.00 2019
161 Mozambique 4.50 2019
161 Vanuatu 4.50 2019
163 Denmark 4.00 2019
163 South Africa 4.00 2019
165 Romania 3.40 2019
166 New Zealand 2.80 2019
167 Cambodia 2.30 2019
167 Seychelles 2.30 2019
169 Namibia 1.90 2019
169 Kenya 1.90 2019
171 Myanmar 0.30 2019
172 Suriname 0.00 2019
172 Armenia 0.00 2019
172 Afghanistan 0.00 2019
172 Lesotho 0.00 2019
172 Eritrea 0.00 2019
172 Bhutan 0.00 2019
172 North Macedonia 0.00 2019
172 Georgia 0.00 2019
172 Comoros 0.00 2019
172 Botswana 0.00 2019
172 Bangladesh 0.00 2019
183 Liechtenstein -2.00 2019

More rankings: Africa | Asia | Central America & the Caribbean | Europe | Middle East | North America | Oceania | South America | World |

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.