Profit tax (% of commercial profits) - Country Ranking

Definition: Profit tax is the amount of taxes on profits 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 Palau 65.80 2019
2 Equatorial Guinea 53.00 2019
3 Cameroon 38.90 2019
4 Liberia 35.40 2019
5 Bhutan 33.90 2019
6 Malta 32.30 2019
7 Chad 31.30 2019
8 Bangladesh 31.10 2019
9 Mozambique 30.80 2019
9 Puerto Rico 30.80 2019
11 St. Kitts and Nevis 30.50 2019
12 Comoros 30.40 2019
13 Kenya 30.10 2019
14 New Zealand 29.90 2019
15 Honduras 29.20 2019
16 Dominican Republic 29.10 2019
17 Burundi 28.50 2019
18 Suriname 27.90 2019
19 St. Vincent and the Grenadines 27.60 2019
20 Mexico 27.00 2019
21 Myanmar 26.80 2019
22 Grenada 26.50 2019
23 Chile 26.20 2019
24 Australia 26.10 2019
25 Trinidad and Tobago 25.80 2019
25 St. Lucia 25.80 2019
27 Rwanda 25.70 2019
28 Antigua and Barbuda 25.50 2019
29 Eswatini 25.20 2019
30 Belize 24.70 2019
31 Ethiopia 24.60 2019
32 The Gambia 24.40 2019
33 Kiribati 24.30 2019
34 Japan 23.90 2019
35 Dem. Rep. Congo 23.60 2019
35 Uruguay 23.60 2019
37 Solomon Islands 23.30 2019
38 Germany 23.20 2019
38 Papua New Guinea 23.20 2019
40 Greece 23.00 2019
40 Syrian Arab Republic 23.00 2019
42 Haiti 22.80 2019
43 Peru 22.70 2019
44 Brazil 22.40 2019
45 Uganda 22.30 2019
46 Thailand 22.20 2019
47 Libya 22.10 2019
48 Armenia 21.80 2019
48 South Africa 21.80 2019
48 Dominica 21.80 2019
51 Niger 21.60 2019
51 India 21.60 2019
53 Botswana 21.50 2019
53 Angola 21.50 2019
55 Tonga 21.20 2019
56 Morocco 21.10 2019
56 Colombia 21.10 2019
58 Nigeria 21.00 2019
59 Tanzania 20.80 2019
60 United States 20.70 2019
61 Netherlands 20.40 2019
61 Malawi 20.40 2019
63 Gabon 20.30 2019
64 Philippines 20.20 2019
64 Guatemala 20.20 2019
66 Turkey 20.00 2019
66 Norway 20.00 2019
68 Barbados 19.80 2019
69 Guyana 19.60 2019
69 Fiji 19.60 2019
69 Malaysia 19.60 2019
72 São Tomé and Principe 19.40 2019
73 Costa Rica 19.20 2019
74 Cambodia 19.00 2019
75 Seychelles 18.80 2019
76 Sierra Leone 18.50 2019
77 Iran 18.40 2019
78 Cabo Verde 18.30 2019
79 Korea 18.20 2019
79 Ecuador 18.20 2019
81 Indonesia 18.10 2019
82 Israel 18.00 2019
83 Pakistan 17.80 2019
84 Tajikistan 17.70 2019
84 Djibouti 17.70 2019
86 Zimbabwe 17.60 2019
87 Nicaragua 17.30 2019
88 Denmark 17.10 2019
88 Austria 17.10 2019
90 Namibia 16.70 2019
91 El Salvador 16.60 2019
91 Madagascar 16.60 2019
91 United Kingdom 16.60 2019
94 Hong Kong SAR, China 16.50 2019
95 Kazakhstan 16.40 2019
95 Lao PDR 16.40 2019
97 Senegal 16.20 2019
97 Burkina Faso 16.20 2019
99 Romania 15.60 2019
100 Guinea-Bissau 15.10 2019
101 Iraq 15.00 2019
101 Nepal 15.00 2019
103 Italy 14.60 2019
104 Poland 14.50 2019
105 Oman 14.40 2019
105 Egypt 14.40 2019
107 Albania 14.10 2019
108 Yemen 13.80 2019
109 Jamaica 13.60 2019
109 Tunisia 13.60 2019
111 Vietnam 13.20 2019
112 Sweden 13.10 2019
113 Serbia 13.00 2019
114 Slovenia 12.70 2019
114 Azerbaijan 12.70 2019
116 Portugal 12.50 2019
117 Ireland 12.40 2019
117 Panama 12.40 2019
119 Finland 12.10 2019
120 Benin 11.90 2019
121 Uzbekistan 11.80 2019
122 Sudan 11.50 2019
123 Belarus 11.10 2019
124 North Macedonia 11.00 2019
125 Samoa 10.90 2019
126 Lesotho 10.80 2019
127 Spain 10.60 2019
128 Timor-Leste 10.50 2019
128 Jordan 10.50 2019
130 Togo 10.30 2019
130 Belgium 10.30 2019
130 Mauritius 10.30 2019
133 Ukraine 10.20 2019
133 Mongolia 10.20 2019
135 Ghana 10.00 2019
136 Paraguay 9.60 2019
137 Venezuela 9.40 2019
137 Hungary 9.40 2019
139 Switzerland 9.30 2019
140 Eritrea 9.20 2019
141 Slovak Republic 9.10 2019
142 Côte d'Ivoire 8.80 2019
143 Moldova 8.70 2019
144 Iceland 8.50 2019
145 Bosnia and Herzegovina 8.40 2019
146 Montenegro 8.30 2019
146 Cyprus 8.30 2019
148 Algeria 8.10 2019
149 Canada 8.00 2019
150 Latvia 7.80 2019
150 Georgia 7.80 2019
152 Estonia 7.70 2019
153 Mali 7.50 2019
154 Russia 7.30 2019
155 Lebanon 6.90 2019
156 Kyrgyz Republic 6.70 2019
157 China 6.30 2019
158 Lithuania 5.90 2019
159 Czech Republic 5.20 2019
160 San Marino 5.00 2019
161 Bulgaria 4.90 2019
162 Luxembourg 4.20 2019
163 Argentina 3.60 2019
164 Saudi Arabia 2.20 2019
165 Singapore 2.10 2019
166 Zambia 2.00 2019
167 Sri Lanka 1.20 2019
168 France 0.20 2019
169 Brunei 0.10 2019
170 Guinea 0.00 2019
170 Bolivia 0.00 2019
170 Congo 0.00 2019
170 Qatar 0.00 2019
170 Croatia 0.00 2019
170 Bahrain 0.00 2019
170 Kuwait 0.00 2019
170 Mauritania 0.00 2019
170 Central African Republic 0.00 2019
170 The Bahamas 0.00 2019
170 Afghanistan 0.00 2019
170 Vanuatu 0.00 2019
170 United Arab Emirates 0.00 2019
183 Liechtenstein -2.00 2019

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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.